Once taxpayers began to get a handle on how big a tax rebate they would get, they started wondering if they would have to pay taxes on it next year. At last, the IRS has provided the answer.
According to the IRS, you will not owe taxes on your rebate when you file your 2008 income tax return. However, you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

In addition, your tax rebate will not reduce your refund or increase the amount you owe when you file your 2008 tax return.