You have misunderstood what you read. For 2008 there is a one-time tax cut for income in the 10% bracket - the rebate is an advance on that. If your rebate is more than the tax cut would have given you, you don't have to pay back the extra. so your refund next year will be the same as it would have been if there had been no stimulus bill (no tax cut, and no rebate). But if you don't get a rebate this year and have any tax liability next year, or if your rebate this year is less than your tax liability next year and you haven't already gotten the maximum $600, then you'll benefit from the tax cut when you file your 2008 return. What this means to you is that if you would normally have gotten $2000 next year and you got the rebate this year, you'll get $2000 next year. If you did NOT get the rebate this year, and would have gotten $2000 next year, you will get MORE than $2000 next year if you owe any tax, because you'll also get the benefit of a one-year tax cut. If you get the rebate this year, you won't get that extra, because you will have already gotten it.