THE REBATES ARE COMING! THE REBATES ARE COMING!

Congress has officially passed the Economic Stimulus Bill!  What does this mean to you?  If you are eligible for a payment, you will be receiving a rebate check from the IRS sometime in May in an amount between $300 and $2,400.  According to Acting IRS Commissioner Linda Stiff, “all you have to do is file a 2007 tax return and the IRS will do the rest.”  Note that the tax return due date is April 15, 2008.  If you file an extension by October 15, your check will go out by the end of the year – no checks will be sent after December 31, 2008. 

Also, for purposes of figuring eligibility for the rebate, the following income types are considered “qualifying”:  Social Security benefits, disability compensation, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment.  While you may not be normally required to file a tax return because you do not meet the filing requirements, the IRS emphasizes you MUST file a 2007 return in order to receive a payment. 

Basic Eligibility:

In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).  You will also receive an additional $300 for each qualifying child.  The MAXIMUM rebate is $2,400.

Note:  Eligibility for a stimulus payment is limited for taxpayer’s with high incomes (more than $75,000 for individuals and $150,000 for married filing joint). 

Direct Deposit:

The fastest way to receive the rebate money is to have it direct deposited.  The IRS has indicated that taxpayers, who received their 2007 refund via direct deposit, will have their rebate checks deposited into the same account. 

If you filed your 2007 tax return and received a Refund Anticipation Loan or Refund Anticipation Check, it appears the IRS will mail your rebate check.  If this changes, we will post an update to this article. 

Examples of how the Rebates might benefit you:

• Married filing jointly, two children, AGI of $25,000, with a federal income tax liability of $150. 

Rebate          =$600
Child Rebate   =$600
          TOTAL =$1,200

•  Married filing jointly, two children, AGI of $85,000, with a federal income tax liability exceeding $1,200 (before child tax credit). 
  

Rebate          =$1,200
Child Rebate   =$600
          TOTAL =$1,800

• Head of household, two children, AGI of $25,000, with a federal income tax liability of $150. 
  

Rebate          =$300
Child Rebate   =$600
          TOTAL =$900 

• Single, AGI of $11,000, no federal income tax liability. 
  

Rebate          =$300

For more examples click here to access the U.S. Treasury Fact Sheet.

For further reading check out the following links:

• IRS Facts about the 2008 Stimulus payments
• Full Text of the Bill (just in case you have trouble falling asleep)
• President Bush’s Announcement
• White House Fact Sheet
  

At PRO-TAX we want to ensure that you get your Rebate check in a timely manner.  If you haven’t filed your return yet; we can help.  Call or visit one of our offices.  Information is located here.  We look forward to making sure you receive your payment!

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