What are you going to do with your economic stimulus check?

[Donger]

Originally Posted by a1na2

Is the money is basically an interest free loan against your taxes next year? If you get money will it be deducted from your return in 2009?

Mine goes to the bank as well. I'm not rich but I have what I need. What I want is another issue but as long as we have what we need and the grand kids have what they need we are OK.

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.