Fiscal Tax Blog

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."