Does the Newly Passed Economic Stimulus Package Have to be Repaid?

Update (2-19-09): For those of you looking for information/thoughts on the 2009 economic stimulus recently signed by President Obama, please visit My Thoughts on the Economic Stimulus.

Here's an email I just received:

Good morning.  CNN has the story this morning about the Senate approving the rebate/stimulus plan.  A quote in that article made me sit up and take notice.  Specifically, it says: "The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time. "

An advance on next year's refund!?  Does that mean that those who owe taxes when they file are going to owe the taxes PLUS whatever rebate amount they received?  Sounds more like a payday loan than an economic stimulus package.  It sounds like everyone who gets this money - and I haven't heard of a way to opt out - is going to have to repay it in less than a year.  Which would seem to stimulate the economy now only to put the brakes on it in early 2009.  That seems very strange to me.

I'm curious to hear if anyone out there knows if this is indeed the case.

I must have missed this. Is it true? Is the rebate simply an advance that will need to be repaid/taken off next year's refund?

If so, that's quite different than how I understood it.

Update: Note the comment below from SH: "CNN just updated the story removing that sentence."

Update #2: MSN Money:

To produce this cash, Congress changed the lowest tax bracket so that instead of paying 10% on your first $10,000 of taxable income, for 2008 you'll pay nothing on the first $10,000.

Normally, you wouldn't see that cash until the spring of 2009, when you filed your 2008 return. But Congress wants to speed that money to you now, so checks will start going out in May.

Remember, this is your money you're getting back, and the rebate checks are basically an advance on your 2009 refund. The last time such rebates were sent out was in 2001, said tax expert Mark Luscombe, "a lot of people were upset to see their (next) refund reduced."

Comments

[tampon.bob]

stimulus shmimulus .. i don't even need mine now! in the next two months, i'm going to be earning in upwards of $2,000 a week in this kick ass investment program with daily compounding interest.. how SWEET life is :) .. any of you people want my stimulus check!?

[solas]

hey tampon.bob. ill take your rebate! email me and ill give you my # and well talk. no seriously i do kinda understand what the gov is tryin to do. they want us to invest.right? well maybe someone can let me know what to invest in. even if its only 100 dollars of that. because honestly ill be stimulating my own economy with the rest. unemployment has gotten so difficult to get ahold of that were out atleast 1200 dollars. you cant call to file, you cant email to file unless you talk to a rep. how if you cant call? this sucks. so ill be playing catch up. but it would be nice to invest a little to see a big return. anyone got any good advice for my 100? any sure things? and how do i do it. ive never invested. energy and oil would probably be a good start huh.

[miamilatte]

indeed true i went 2 file my taxes and the stimulus i received was deducted from the amount. Thanks for nothing Bush

[charles]

all of this is B S. that is why we need a federal user tax and get rid of all federal taxes and the irs . then every one would pay something even the tax cheating democrats.

[lisa]

ok all this talk about having to repay it or not is confusing its either a yes or a no.what is so hard about that? I men everyone goes on and on about this and i frankly still dont understand if we have to pay back or not????? Can somebody please just answer this question with a simple yes or no!!! DO WE HAVE TO PAY IT BACK???????

[FMF]

Lisa --

This post is written about the FIRST stimulus package (under Bush -- note the date), not the recently passed one by Obama.