Is there a catch to the Rebate Checks?

Yes, you are right! http://digits.hrblock.com/taxrebate/ 2. Will the tax rebate be considered income and will I be taxed on it next year on my 2008 return? No and no. The tax rebate is an ADVANCE CREDIT for tax year 2008 and will be calculated on your 2008 return. If you're due a higher payment, you'll get the remainder next year when you file. If you received a higher rebate (payment) than you should have, you DO NOT have to pay it back.

I'm no CPA but i don't think so. Now the only thing that I would have doubt about is if it will be considered income and that we will end up paying taxes for it next year? I don't know if all states did this but my state did this same type of "rebate" a few years ago...I was never taxed nor did it go against me the next year....You are correct though the government can't be trusted specially with our money.

no there are not an advance for 08, however...I received my refund check electronically this morning and was surprised. I was supposed to get 1500, filed married w/1 child for 07. instead received 1159. no one explained to the American public that the checks would be taxed and that its just not as cut and dry and the government led us all to believe. the amount you receive all depends upon where you fall in the different tax brackets. some people are not receiving anything contrary to what they thought. there is a worksheet you can fill out on the IRS website that supposedly will show you what your check will be. unfortunately there are and will be a lot of disappointed families out there that were counting on this money to pay bills, buy food etc. we are one of them.

No, not a catch - it's the closest thing to free money you ever got. For 2008 there is a one-time tax cut for income in the 10% bracket - the rebate is an advance on that. If your rebate is more than the tax cut would have given you, you don't have to pay back the extra. so your refund next year will be the same as it would have been if there had been no stimulus bill (no tax cut, and no rebate). But if you don't get a rebate this year and have any tax liability next year, or if your rebate this year is less than your tax liability next year and you haven't already gotten the maximum $600, then you'll benefit from the tax cut when you file your 2008 return. So if you get the rebate now, you won't get the EXTRA money next year, but you won't get less than you normally would have, either.

What you were told is not true...the stimulus check will not affect your 2008 tax refund in any way...here is the wording from the IRS website: 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. Q. If my stimulus payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received? A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08] 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.