A week after the House of Representatives passed their version of the economic tax stimulus package, the Senate has passed their own slightly modified version. Overall, the Senate version is very similar to the House version, differing mainly in the extension of the tax rebate to low-income seniors and disabled vets.
Here’s the deal…
Single filers making less than $75, 000 will get a $600 tax rebate and couples making less than $150, 000 will get a $1, 200 rebate. On top of this, parents will receive an additional $300 per child. On top of this, tax filers who do not owe income taxes but have at least $3, 000 in income will get a $300 rebate.
According to Treasury Secretary Henry Paulson, the IRS will start sending out the checks in May.
14 Responses to “Senate Passes Economic Stimulus Tax Rebate”
Date: August 25, 2008
I have heard that another stimulus check will be sent out too people which have already received one. Is it true?
I show a negative income because of losses on avocodo groves I own, will I get a rebate chech
If I am married with two children and I get $1200 back am I going to have to pay taxes on that money? Am I going to have to claim it as income? If so that will push me into another tax bracket and I can’t afford to pay the extra taxes that come with that. I have a hard enough time raising my kids with the cost of living these days.
“Rebates” will be based on your 2007 tax return….so even people that normally woudn’t have to file a return should if they want the rebate.
It is not going to count as taxable income on next year’s return. You will have to inclue it as income, but there will be a tax credit just for ’08 returns that will cancel out that part of your income (make it not taxable).
It will in no way affect your refund/amount owed on your 2008 tax return.
And yes, the IRS will just send out the rebates. There’s nothing you need to do to get it, other than file a 2007 tax return.
Source — I work for H&R Block 🙂
From everything I have read about this, it is not something that you even apply for. Is the IRS just taking information from 2007 taxes and then send out checks?
I don’t agree that this is just giving us our own money. If I’m understanding correctly this is an advance on our 2009 refund however it’s also a new tax credit so the effect on your taxes will be a wash. If you turned around and sent it back to them then they would just turn around and send it back to you in 2009. When you do your 2008 taxes you will have to claim this rebate check like it’s income but it will be canceled out by the one-time tax credit.
For more on my earlier comment, please see the article
Information found at the US Treas page:
I haven’t read anything yet about this is borrowing from future tax refund dollars, but I did notice this line in one article.
“Lawmakers waived so-called paygo rules requiring them to offset that expense with savings elsewhere in the budget to avoid adding to the deficit.”
Not that I am surprised.
Did you notice this: “The checks are an advance on next year’s refunds, and most, if not all of the money, will be deducted from taxpayers’ refunds in 12 months’ time”.
So, it’s nothing more than a refund-anticipation loan from the IRS. The best thing to do it just sign the back of the check, and send it right back!!
I’m glad they finally made a decision on it. If I get a refund great. If not, I won’t sweat it.
yes, but from which year are they going to get the AGI from? Is the (slow-poke) IRS REALLY going to get it from the 2007 returns filed in april and be able to turn around and send out checks in may?
or will they use 2006 data?
I am starting to feel that nickel’s reading is mine too. I should have adjusted my taxes. I just barely did not owe anything, and I could have not taken a couple of small deductions to push it so that I owed a very small amount. I wonder if that would have worked? Oh well, I am not going to sweat it I guess.
From what I’ve read, I *think* you would get $300 ($0 taxes, but over $3,000 in earnings). assuming this to be true, consider yourself lucky, as I don’t think you would’ve have qualified under the House version.
Of course, I’m just basing this on what I’ve read, so I could be mistaken.
I have an AGI of around $55,000, after exemptions and the standard deduction my taxable income is around $30,000. At a 10% tax rate, that puts my tax at $3,000. But, I then get a tuition credit and child tax credit, which makes my tax due $0. So, do I qualify for the full $600/$1200? Or will it be reduced to the $300? I do have taxable income, but my tax owed is zero.