Last night Congress gave overwhelming final approval and President Bush has pledged to sign into law an economic stimulus package that provides tax rebates to most American households.
The tax rebate checks are different from tax refund checks that the IRS usually sends out a couple weeks after a tax return is filed. Also, the tax rebate checks will be sent out separately from tax refunds, but no one knows for sure exactly when. It's possible that the rebate checks could begin arriving as early as May. The rebates will be based on 2007 tax returns, which are not due until April 15. So, if you're eligible for the tax rebate make sure to file your 2007 tax return.
The legislation provides $600 payments for tax payers filing individually, $1,200 for joint filers and $300 for each child younger than 17.
To be eligible, tax filers have to have made at least $3,000 in earned income during the 2007 tax year. The Senate also added language to ensure illegal immigrants did not receive rebate checks.
The rebate starts to phase out at $75,000 in adjusted gross income for individuals and at $150,000 for couples.
To get an idea as to what your tax rebate might look like, you can use this simple Online Tax Rebate Calculator. Remember the calculator only provides an estimate of what your tax rebate might look like.
It took two weeks for House leaders from both parties to forge the initial deal with Bush, for the House to pass it overwhelmingly, for the Senate to amend it and for Congress to put its final stamp on the legislation.
Shortly after the legislation left Congress, Bush released a statement supporting it, saying, "I want to thank the members (of Congress) for passing a good piece of legislation, which I will sign into law next week."
226 Responses
Patiently waiting...
the IRS deduct that amount
from my rebate check. also
if I e-filed and had a direct
deposit, will my rebate check
be automatically direct deposited
vakbit
Based on your information, the tax rebate calculator calculated the value of your tax rebate check correctly. Since you got a generous refund, your tax liability most likely was $0. That's why your tax rebate check will be $600. If your tax liability was $600 or more your tax rebate will be $900.
Why would people who didn't pay any federal tax expect a rebate?
The IRS has announced it will be direct depositing the tax rebate for tax payers like you who chose to have their tax refund direct deposited. At this point we don't know of any formal procedure for you to follow to get the IRS to mail your tax rebate check instead. We recommend calling the IRS directly at 1-800-820-1040 to explain your situation and see what you can do.
According to the IRS, Supplemental Security Income (SSI) does not count as qualifying income for the tax rebate check. If this is your only income from 2007, you will not qualify for a tax rebate check.
If you still owe back taxes from prior years, the IRS will deduct the balance due from the tax rebate check. If what you owe the IRS is greater than the amount of your tax rebate, you will not get a tax rebate check. But the good news is that your balance due the IRS will be reduced by the amount of your tax rebate.
Since your grandmother you first mention can be (and is) claimed as another's dependent, she is not eligible to get her own tax rebate check. Your other grandmother (on RR retirement benefits) probably does qualify and should file a return to get the tax rebate.
The tax rebate check will NOT need to be claimed on your 2008 tax return. It is tax free money.
My other Grandma is on Railroad Retirement and has not filed a return in years. Should she file a return to get the rebate?
Thanks
Oct 2007 and is a full time student in high school and made less than 3000 dollars
at her job who gets the tax rebate?
Since your mother's income is from Social Security, she cannot file a 1040EZ. She should use either form 1040A or 1040 (the long form). She should report her SS income on line 14a of form 1040A or line 20a of form 1040.
If you did not pay in any taxes on your 2007 income tax return, you can still get a tax rebate check of at least $300. This is assuming you meet the other requirements like showing at least $3,000 of earned or qualifying income. There are no special credits in the tax rebate that target lower income families to increase the amount of the tax rebate check.
Yes, the IRS will apply your tax rebate check to you back taxes. If your tax rebate check is smaller than what you owe, you will not get a check in the mail. But what you owe in back taxes will be reduced by the amount of the tax rebate check. Make sure to file your 2007 tax return, though! Without it the IRS will not calculate your tax rebate check and will not apply it to your back taxes.
According to the IRS Veterans’ disability compensation, pension or survivors’ benefits do count. But I'm not sure if your mother's VA Aid & Attendance benefits do. So long as she had over $3K in SS benefits, then she qualifies. But she has to file her 2007 income tax return to get her tax rebate check.
The minimum income requirements for the tax rebate checks are different from AGI. According to the IRS interest, dividend and pension income (such as those from Individual Retirement Accounts) does contribute to the AGI but not the minimum income requirement for the tax rebate check.
The IRS has stated that the tax rebate checks will be will be subject to offset against outstanding tax and non-tax liabilities in the same fashion as regular tax refunds. If you do not file in 2007, though, they will not apply the $1,200 against your outstanding liability.
The IRS will send the tax rebate checks to the address on your 2007 income tax return. If you change addresses before you get your tax rebate check you should should notify the IRS by filing Form 8822, Change of Address in addition to notifying the Post Office.
We're not sure when the IRS will send tax rebate checks for amended or late returns. We do know that the IRS will run the numbers again next year when they get your 2008 income tax return. If they find you should have gotten a bigger tax rebate check, they will send you the difference.
I'm assuming that your disability income is Supplemental Security Income (SSI) which does not count towards the minimum income requirements for the tax rebate check. If at least $3K of your $7K in income last year was earned income then you will qualify for a tax rebate check
If you think the tax rebate check calculator is in error, please send the developer a message. There is a link on the calculator (scroll way down to the bottom to find it) that you can use to inform the developer of any mistakes you think you've found.
You have to file your 2007 Federal income tax return to get your tax rebate check. If you do not file, you will not get a tax rebate check. Even if you aren't required to file your taxes, the IRS won't know to send you a tax rebate check if they do not have your 2007 income tax return
I just put your information into the tax rebate check calculator and it shows a $1,500 tax rebate. Maybe you put an extra zero in your AGI?
Your 3 children are all too old to contribute to you and your husbands tax rebate check. Since they can be claimed as dependents on your tax return they are not eligible for their own tax rebate checks.
The tax liability (reported on line 57 of the 1040 long form) is one of several factors that impacts the amount of your tax rebate check. Use the new tax rebate check calculator to see how your situation is impacted.
Try the new Tax Rebate Calculator we just put up today. The old Tax Rebate Calculator probably kept telling you $1500 b/c you were telling it that you wouldn't be paying taxes on your 2007 income tax return.
There is no $300 bonus for being a senior citizen. Based on what you report about your tax situation, if you and your wife file jointly the two of you can probably look forward to a tax rebate check of $1200. If you file separately, then you would probably get a tax rebate check for $300 and your wife would get a tax rebate check for $600.
The self-employment tax does not count. What counts is the tax liability reported on line 57 of the 1040 long form. Assuming no one else can claim you as a dependent, it looks like you can look forward to a tax rebate check of $300.
That is not true. What matters is that you can not be claimed as a dependent on someone else's tax return. *Usually* when you turn 25 you can't be claimed as a dependent on someone else's return. However, many people stop being claimed as dependents on others' returns before they turn 25.
For purposes of the tax rebate check, if you file head of household, then you are considered to be filing singly.
The answer depends on how much you and your husband jointly owed in taxes on your 2007 tax return. Whether or not both parents worked in 2007 does not matter. Use the updated tax rebate calculator to get a better idea of what your tax rebate check might be.
You can still file MFS and receive a tax rebate check. Without knowing the details of your tax returns, we can't say for sure, but... filing separately probably will not impact the combined total value of the tax rebate checks sent to you and your husband.
The answer is both. The amount depends on how you answer the first question in the Tax Rebate Calculator. Single taxpayers who owe taxes in 2007 will get $600. Single taxpayers who do not owe taxes in 2007 will get $300.
So long as no one else can claim you as a dependent and you meet the income requirements, you qualify for the tax rebate check.
By giving up the dependency exemption to your ex this year, you gave up the $300 contribution to your tax rebate check. Children contribute to the tax rebate check, so long as they are eligible for the Child Tax Credit on your 2007 tax return and the Child Tax Credit follows the dependency exemption which you don't have.
You're correct that your son won't contribute to your rebate b/c he doesn't pass the age test. Since he is claimed as your dependent, he will not qualify to receive a tax rebate check for himself.
Without seeing your 2007 income tax return, I can't say for sure... but with a $26K AGI chances are that you'll be paying taxes for 2007. Unless you have A LOT of deductions that wipe out your taxable income, you will probably be paying taxes on your 2007 tax return. That's not to say you won't get a refund (which is different from the rebate!) on your 2007 income taxes. Most of us pay taxes and still get a refund b/c we have more than we owe withheld from our paychecks over the co
The IRS only cares about how old you are on 12/31 of the tax year. So your child that turned 17 in August of 2007 will not contribute $300 to your tax rebate check.
The Online Tax Rebate Calculator only estimates your tax rebate. It does NOT calculate your tax liability or tax refund. Use the Tax Refund Calculator to get an estimate of what you will owe or get back on your 2007 income tax return. Also it is important to understand that you can NOT apply what you *think* your rebate will be to your 2007 tax return. If you owe taxes for 2007, you still need to pay the IRS before April 15 even if you think the tax rebate will cover what you owe.
The income you mention adds up to about $63K, so you and your husband will meet the income requirements. In fact, each of you could file separately and both of you would meet the income requirements. However, your total tax rebate will work out to be the same either way and it's usually more advantageous from a tax standpoint to file jointly.
Michelle, $3000 a year is pretty much lower than poverty
that is only 62.50 a week for 11 months. Do the math. Who would only earn $100 annually? Also why would they in return recieve a TAX rebate when they pay no taxes on $100?
Michelle
I believe that making it manditory for taxpayers to have made a minimum of $3000. before a family can recieve a tax rebate it wrong. There are families that need it because there may have been medical problems that prevented them from
The tax rebate is based on your 2007 income tax return. Your son will be 16 on that return, so you should get the $300 added to your tax refund check.
It doesn't matter what form of the 1040 you use to file your taxes. So long as you meet the income requirements, you can use the 1040 EZ, 1040 A, or 1040 long form and get your rebate.
Since your daughter is claimed as your dependent, she won't be eligible to get her own rebate. However, if she is younger than 17, you should see $300 added to your rebate (assuming you meet the income qualifications, of course).
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