[Summit] "Economic Stimulus" Checks

[rpdenise]

Actually, the credit (or refund) for the Federal Telephone Excise Tax (a 
one-time deal on your 2006 return) was not taxable.  What was taxable was 
the interest earned and paid on the tax.  This interest was included in the 
total amount included as a credit on line 71 of Form 1040.  The interest 
part of this credit was reported by the IRS for the 2007 tax year (the year 
it was received) on a Form 1099 and was probably 10-15% of the amount of 
the tax refunded.

Bob

At 12:06 PM 5/5/2008, Bresler E wrote:
>Thanks for the non-tax info.  My misunderstanding. The telephone tax 
>rebate WAS taxable.
>
>But we did check direct deposit, and that's how we received our 
>over-payment refund.
>We filed our taxes in Feb and have low numbers for our last digits of 
>SS#s, both of us.
>But it's still May 9th, as originally scheduled.
>
>E
>
>On Mon, May 5, 2008 at 11:41 AM, rpdenise 
><<mailto:mail at rpdenise.com>mail at rpdenise.com> wrote:
>>It's actually very easy to get the correct info.
>>
>>Go to <http://www.irs.gov>www.irs.gov.  At the top of the page is "Rebate 
>>payment Questions".  Click that and you can find all the answers.
>>
>>To clarify two items:
>>
>>The rebate is not income and is not taxable.  It is a tax refund.
>>
>>The "fan-fare" about the earlier payments had to do only with those who 
>>receive their tax refunds (and, therefore, tax rebates) by direct deposit 
>>to their bank accounts.  There is a box you check on your 1040 form for 
>>this.  These direct deposit rebates are the ones sent out early.  Those 
>>who receive their refunds (and rebates) by mail will get them on the 
>>original schedule.
>>
>>Bob
>>
>>
>>
>>At 11:04 AM 5/5/2008, Bresler E wrote:
>>>I just called the IRS and (after pushing a lot of buttons and getting 
>>>transferred around) it seems that despite the fan-fare, most of the 
>>>checks are going out on the original schedule.
>>>Furthermore, the income will be taxable federally, meaning probably also 
>>>by RI, so the actual amount we receive is probably at least about 20% less.
>>>Elianna
>>>