| No federal tax on IRS checks, but states might
Q. Will the rebate I am promised on my 2007 taxes be subject to taxes? Or can I spend it all without worrying about having to pay taxes on it later? A. You will not have to pay federal taxes on it, but don't spend too freely because you may end up having to pay state taxes, depending on where you live. In addition, the IRS has the right to divert your rebate to pay past due taxes. The rebates from the Internal Revenue Service are part of an economic stimulus package approved by Congress and signed by President Bush earlier this year. The law stipulated that these sums cannot be taxed federally. However, John Roth, a senior tax analyst at business law information provider CCH, said the federal law has no impact on state tax codes and practices. Each state sets its own tax law.
Tax rebate on the way; here's what you need to know
This is good news at the end of a long and dreary winter: Most of us will get a check from the federal government. Because Congress wants to stimulate the economy, it decided to send checks to more than 130 million American households. In May, when the snow will surely be melted and tulips will be blooming, the rebates will start arriving. .
More information
For more information about the federal tax rebates, visit www.irs.gov or call 866-234-2942. In Dane County, call the United Way at 211, or, from a cell phone, 246-HELP (4357) for information about places that will help you. United Way volunteers can tell you what information you will need to bring. This Saturday, the Madison IRS office at 545 Zor Shrine Place, near West Towne Mall, will be open from 9 a.m. to 3 p.m. to help people who normally are not required to file a tax return. You must file a tax return to get a rebate. .
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