President Bush has signed the economic stimulus bill which includes tax rebate checks for many tax filers. The rebates will range from $300 to $1,200 and more for couples with children under 17 years old.
Based on your 2007 tax return, a rebate of up to $600 would go to single tax filers with adjusted gross income (AGI) of $75,000 or less. Married tax filers will receive a $1,200 rebate assuming that their AGI is $150,000 or less. In addition, tax filers with children under 17 will get an extra rebate of $300 per child.
As always there are some restrictions that will disallow some tax filers from receiving the rebates. High income tax filers won’t get checks. The rebates will start to phase-out at $150,000 of adjusted gross income for married couples and $75,000 for singles. The rebates are phased out by $50 for every $1,000 of income in excess of the threshold amounts.
Low income tax filers will be entitled to a rebate. Tax filers who do not owe income taxes but have at least $3,000 in qualifying income will get a rebate. $300 for single tax filers and $600 for married tax files. Seniors can include social security benefits towards their qualifying income.
According to the IRS more than 130 million taxpayers will receives rebates. No additional paperwork will be required by most taxpayers. The IRS will use the information on the tax filer’s 2007 tax return to determine if they are eligible for the rebate check and the rebate amount. Current plans are for the IRS to start sending payments in early May. They will continue to be mailed during the spring and summer. The IRS plans to issue a payment schedule in the near future. There are still some open questions. For example, how the IRS will process rebates for tax returns filed on extension has not been clarified.
For an update on the tax rebates or any other questions/concerns you may have relating to tax or accounting issues, please call 661-253-0270 or e-mail info@chegwin.com .