Reply #84: What's not how your H&R Block guy did it?

[hfojvt]

Look, I have right next to me the instructions for form 1040 in 2001. I look at the form and there is no extra line for "repayment of rebate check". In fact, it says on page 14 "Any amount you received as an advance payment of your 2001 taxes is not taxable and should not be reported on your return." I look at the tax rate tables and they are unchanged.

Maybe your tax guy was duped by the media story. It's hard to believe a professional would be so duped, but not impossible. Maybe they had orders from the corporation to spread that anti-tax message. "Yeah, now you've gotta pay back that rebate."

Here's how the media story went. The tax rate on the first $27,050 of taxable income was 15%. The Bush tax cuts created a 10% bracket for the first $6,000, meaning you pay $600 on that income instead of $900. Then some people noticed that doing their taxes "Look, we are still paying $900 on that first $6,000, so we are paying the rebate right back."

No, some people are either purposely obtuse, or simply do not understand net tax. What is your tax without the rebate check? $600, right? What is it with the rebate check? It's still $600. It's the sum of -$300 received in May 2001 plus $900 paid in February 2002. Voila! $600 = $600. There's no paying back of the rebate checks whatsoever.Z+*