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Note: Click here for more information on the Tax R.E.L.I.E.F. Act or Rebate FAQs » From: Milwaukee, WI Dear TaxMama, With the tax rebate check coming to all of us soon, if you owe taxes to the government, will they send the check or will they just deduct it from what is owed to them? Ron Dear Jeff, They will deduct what you owe them, first. But you'll get a letter letting you know what they did with your money. Here are some more places that give you information on IRS's announcements about the Rebates. TaxMama's IRS News, 6/1/01 TaxMama's IRS News, 6/8/01 TaxMama's IRS News, 6/15/01 TaxMama's Answers to Frequently Asked Questions About the Advance Payment Mailout, IRS News, 8/3/01 Are you seeing a pattern here? Keep your eyes on TaxMama's IRS News pages. You'll find new information as it gets released by IRS. One thing I would like to clarify, though. This Rebate is not FREE money. It is an advance refund from next year's taxes. So, if you did not have a tax liability last year, you won't get a rebate. If your liability was small, like $150 or $200, that's all you'll get. You won't get $300. Having a tax liability means that you have a taxable income and is an amount on line 40 - TAX (long form) Or on line 26 on the Short Form - 1040A Having a tax liability means that you paid taxes last year. I hear a lot of people talking about you don't get a rebate if you got a refund. Or you get a rebate if sent a check with your return. Or, or, or lots of other nonsense. It's really simple. If you paid taxes last year, IRS believes you'll probably pay taxes this year. So, they are giving you back your money early. Best Wishes, Eva Rosenberg Click Here for TaxMama's Honor System |
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