By now, you have probably heard that the federal government will be sending out checks to millions of taxpayers in an effort to stimulate the economy. Those checks start going out in early May.
Sheryl Walker of Wichita wants to know if there are any negatives that may come along with the rebate. Will it affect your '08 return -- will you have to claim it as income next year? Will itaffect eligibility for other federal benefits?
I spoke to a local accounting firm -- they told me that no, it won't affect your 2008 tax return. If you receive a check, you won't have to claim it as income in 2008. It will be designated as a "gift" from the government. According to the IRS website -- the rebate will have no affect on eligibility for federal assistance programs such as food stamps or social security.
If you have any more questions about the rebate, click the IRS link below - they have a section dedicated specifically to this topic.