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I think they're going to keep it

Submitted by Philip Brewer on April 2, 2008 - 09:17.

If you're just paying your taxes as usual, you'll have paid all of what you owe for 2007 by mid-April, and then get your rebate some time in May.

If you owe money from a past year, though, according to the IRS FAQ, the rebate will go to paying off that debt:

... the stimulus payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support. If this occurs, you will receive a letter explaining how the stimulus payment was applied.

That seems to go counter to the whole point of stimulus, but I guess the IRS is very much more a tax-collecting agency than a stumulus agency.

Keep in mind that I'm not a tax expert, and in any case I don't know enough about your tax situation to comment on it specifically.

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