The tax cuts, changes, whatever, are retroactive to January 1 of this year.
However, the new withholding tables did not go into effect until July 1.
Thus the "rebate" "advanced refund", etc. is supposed to approximately cover
the "excess" withholding for the first six months and is based upon your
prior year tax return.

In the extreme case that you will not work at all this year, for some other
reason, owe no tax for 2001, you do not have to pay back the "advance
refund". For those of us whose 2001 return will closely resemble our 2000
return, "advance refund" pretty much describes the check. It represents
money we would get next spring either in the form of a refund for
overpayment or in a smaller amount owed.

> -----Original Message-----
> From: Tom Hula [mailto:[log in to unmask]]
> Sent: Monday, July 23, 2001 6:37 AM
> To: [log in to unmask]
> Subject: Re: [HP3000-L] Tax "refund" checks
>
>
> That isn't what it says. It says that it is a non-taxable credit
> on our tax form. They have to have some way to account for the
> fact that we received the money and set it up so we can declare
> that we received it and then we will not get taxed for it and
> it is completely separate from whatever refund we might happen
> to get. At least, that is how I read all the links in this
> chain. Terms like advance payment and non-taxable credit.
> As far as I know, refunds are normally considered taxable
> (unless you paid the tax on it in the previous year, of course).
> I don't see anything there that says that the money will be
> subtracted from our refund. Not anywhere.
> My spin.
>         Tom Hula
>         Victor S. Barnes Company
>
> |-----Original Message-----
> |From: HP-3000 Systems Discussion [mailto:[log in to unmask]]On
> |Behalf Of Derek
> |Sent: Monday, July 23, 2001 9:18 AM
> |To: [log in to unmask]
> |Subject: Tax "refund" checks
> |
> |
> |So, am I to understand the following points?
> |
> |1.  At the end of this year our tax liability will be
> essentially the same
> |    as the previous year provided that our income etc. is
> about the same.
> |
> |2.  The refund we are getting is REALLY an early refund if we would
> |    normally have gotten a refund, but for people who
> normally owe taxes,
> |    they will now owe MORE taxes.
> |
> |3.  The "refund" is really taxes we would have paid and the
> scam is that
> |    now the taxes we are paying are going to be taxed AGAIN as income
> |    since they are sending us a check?
> |    If this is true then what a wonderful deal for the IRS.
> Not only do
> |    they collect the taxes they normally would, but they TAX
> US on the
> |    taxes we owe!
> |
> |God, I love politicians...
> |
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>
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