responses I’ve gotten on another forum…
It’s an advance on next year’s taxes based on current year earnings. If they underpay you now, they’ll make up the difference next April/May. If they overpay you, you keep it.
Either way you get the money.
Criminy, I hope more people understand this.
You are not getting free money as any sort of BS “market stimulus”. You are getting a forward on your tax return in 2009. The “market stimulus” hype you’re hearing is the government hoping you’ll spend that refund money this year instead of next year.
Let’s say you’re eligible for $600. Let’s also say that next year you also are granted a $1000 tax return. Well, if you cash the $600 check (hell, with our government, maybe even if you tear up the check and burn the remains) then next year your refund will be $1000-600=$400.