Here’s the deal on those tax rebates:

IRS Information on Stimulus Payments

If you’ve been hearing rumors that this money coming from the IRS is an “advance” and that you’ll just have to pay it back next year, well, it’s only partly true. It is an “advance,” but it’s an advance on a credit. The government voted to give people a temporary tax break on 2008 income taxes, but instead of giving it to us when we file our 2008 income tax returns in 2009, they are sending us the money early.

Some notes from the IRS website:

• Payments will start going out in early May after the current tax season concludes. A payment schedule will be announced in the near future. 

• The IRS will use information on your 2007 tax return to determine eligibility and calculate the amount of your stimulus payment.

• Eligible taxpayers must file a 2007 tax return to receive a rebate. 

• Stimulus payments will be direct deposited if you chose direct deposit on your 2007 tax returns.

• The IRS will continue to send payments until 12/31/08, so if you file your returns later in the year you may still receive your rebate.

• The IRS will mail two informational notices to taxpayers advising them of the stimulus payments. However, taxpayers should be alert for tax rebate scams such as telephone calls or e-mails claiming to be from the IRS and asking for sensitive financial information. The IRS will not call or e-mail taxpayers about these payments nor will it ask for financial information.

I still want to know how our government thinks they can afford this whole “stimulus plan.” At our house whenever we have an expense that wasn’t previously budgeted we have two options: take it from some other category in the budget, or increase our income to cover it. The government’s only source of income is WE THE PEOPLE and since they are giving us the money, not taking more, they must be taking it out of some other budget category. Mr. President, what expenses are you going to cut to pay for all these rebates?

I had a young girl ask me a very good question yesterday: “Are taxes good or bad?” Well dear, it depends on who you talk to. I probably wouldn’t mind paying taxes so much if the people I were paying it to were being responsible with it. I imagine it’s a bit how God feels when he sees how poorly we manage all the money he has given us.

“The earth is the Lord’s, and everything in it, the world, and all who live in it.” (Psalm 24:1)

“You may say to yourself, “My power and the strength of my hands have produced this wealth for me.” But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your forefathers, as it is today.” (Deuteronomy 8:17-18)