After hearing conflicting information regarding the effect of the recent stimulus package on next year's taxes, I bit the bullet and phoned the IRS. Ms. Logan informed me that, as of right now, the stimulus has no effect on how we file next year.
So - if you're as hesitant about spending that money as I am...you can rest a little easier. Until they change the guidelines regarding the stimulus of course - which would be made public on their website www.irs.gov. It was really funny how she kept referring me to the website to keep abreast on the status of whether or not the money will be taxed, counted as a forward, etc. All I want to know is if can I use the money, or not!!! How can being afraid to use the money stimulate the economy anyways?
Does anyone have fun plans with their possibly taxable stimulus money?
4 comments:
Disneyland Baby!!!
I'm pretty sure we'll have to pay taxes on them...at least that's what we're planning on. Unfortunately with Rick being out of a job...ours will go straight to the bank. Do you have any fun plans?
Lindsey J
Lindsey...
In the letter that you get with your rebate - they inform you that you DO NOT report the money as income on next year's return.
When I talked with Joel about it - he confirmed that the rebate has no effect on next year's return. And of course, there is always the possibility that they could change their minds'....but what politician wants to stick his neck on the line with that decision? Could you imagine how outraged people will be if they spent the money that they were given - and then politicians decide it was too much and therefore subject to being taxed? Suicide city!!
We're using it torwards our trips this year - Tahoe this summer, and Disneyland this Thanksgiving:) It's going to be fun!
Ok--I feel like an idiot then because we got a rebate last year...so I reported it on our taxes this year. It said that it was being reported to the IRS...and i figured that since it was from the IRS..I better pay taxes on it. Oh well...such is life...I don't think I'll be doing our taxes next year. Happy Birthday to Mathias!!! You need to post about his birthday:)
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