How does tax incentive stimulus work?

Question

I don't understand one little thing.. Do I have to pay it back next year... or do i have to claim it as income? I have been told alot of different things.. Basicly i want to know do I have to give money to the government becuase of the tax stimulus?

Answer 1

You don't have to pay it back or claim it as income.

Answer 2

You mean the Stimulus Plan Rebates?  That is FREE money for you.  You don't pay it back, nor is it taxable income.  At the State level it could be taxed, however virtually all states have declared that it will not be taxed at the State level.  A few States have had to pass legislation to ensure that it wasn't taxed.  Enjoy.

Answer 3

NO you dont have to claim it next year.  Its free money, period.

Answer 4

The Government is giving you money so that you will spend it.  The person that you spend it with will in turn spend his new profit as will the next person.  In the long run, if this all works out correctly, the government will get taxes from each of those people in the chain and make more than the stimulus they paid.  But you don't pay any tax on it.  Your only job is to spend it.