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2008 Tax Rebate Stimulus Package Explained
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1/15: The Committee on Appropriations just released the an executive summery of the details of the American Recovery and Reinvestment Plan.
This post refers to the first economic stimulus package of 2008. You can read about the second stimulus package here.
Looks like the stimulus payments will be sent out ahead of schedule, with the 800,000 direct deposit payments on Monday April 28th, Tuesday, Wednesday, and a whopping 5 million on Friday (none on Thursday). The schedule of payments will follow the original schedule, just accelerated by a week.
No doubt you’ve heard the “great” news that a deal on a stimulus package has been reached and that checks will be in the mail as early as May. Whether you believe the naysayers that say we’re really just propping up the Chinese economy (or oil rich nations) because we’re borrowing from them to buy their goods or whether you believe the proponents that say this will boost own economy in magical ways the fact of the matter is a deal has been reached – so what is it? Essentially, it’s a removal of the 10% tax bracket for everyone with some modifications. It includes phaseouts that begin past annual incomes of $75,000 and a component that includes those working Americans that don’t earn enough to pay income taxes.
To get a clearer understanding of the rules, let’s walk up the income levels and explain how it works; beginning first with those filing their taxes as singles and then adding in families. How the phaseouts work, from what I can understand, is that you first determine eligibility (if you earned more than $3,000 and paid taxes) and then, if you fall in to the phaseout, start reducing your benefit.
Singles
Determine Eligibility:
If you earned less than $3,000 – unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $300.
If you earned more than $3,000 and paid taxes, you get $600.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. If you earn above $87k, you’re over and thus get nothing regardless of the math.
Couples
Determine Eligibility (appears to be the same as singles):
If you earned less than $3,000 – unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $600.
If you earned more than $3,000 and paid taxes, you get $1,200.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. If you earned above $174k, you’re over and thus get nothing regardless of the math.
Some Common Examples
These are taken from a post by Gridking on Tickerform.org:
- An individual with $2,500 in earned income in 2007: Disqualified because income fell below the $3,000 threshold. No rebate.
- A married couple with no children, with adjusted gross income of $100,000 in 2007: Would qualify for the full $1,200 couples. A $1,200 rebate.
- A worker with one child, who earned $9,000 and owed no taxes in 2007: Would qualify for the $300 rebate available to individuals who pay no taxes but earned at least $3,000, plus an additional $300 for the child. A $600 rebate.
- A couple with income of $145,000 in 2007, with three children: Would qualify for the full $1,200 for couples, plus $300 for each child. A $2,100 rebate.
- A couple with income of $160,000 in 2007 with two children: Would qualify for a partial rebate, reduced by 5 percent for every $1,000 in income above the $150,000 threshold. An $1,800 rebate $1,200 for the couple plus $300 per child — would go down by 50 percent for this family. A $900 rebate.
- A couple with income of $200,000 and four children: Disqualified because their income exceeded $174,000, the phase-out limit. No rebate.
There were a few other salient details to the bill, including a temporary raising of the individual mortgage ceiling that Fannie Mae and Freddie Mac could purchase (FHA loan limits) – increasing it to a whopping $729,750 (up from $417,000), and business tax breaks for infrastructure investments.
Some Questions & Answers
Here are the answers to many of the questions in the comments below, I wanted to wait until the Senate and House agreed on something before trying to tackle these:
Is this a rebate? What is it a rebate on?
The funds are NOT a rebate on the taxes you will pay next year, they are based on your 2007 tax return. Next year, after you file your taxes, the IRS will calculate what you should’ve gotten and adjust your return. So if you received too much “rebate,” they let you keep it. If you received too little, they decrease what you owe next year. (Correction made, Thanks Phil!)
How do I know what I get?
What you receive in May (or June or July) will be based on the tax return that is due April 15th. It will then be adjusted next year if necessary. So, it is based on your 2007 return, use the math I outlined above or the calculator below to determine what you’ll be getting.
Tax Rebate Calculator
This is a calculator that you can find on Consumerism Commentary and has been vetted by tax professionals, this is NOT tax advice so please consult a professional if you have additional questions:
(Photo: Tracy O)
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It is the “American Dream” that first off got us into this mess. Of course when the concept of the “American Dream” was first conceived, it was innocent and good-meaning. Now I really believe that it has been corrupted.
Everyone has their hand out. Everyone’s fighting trying to kick everyone out of the little boat while it’s sinking. We have this standard of living today that is insane. The things we buy, the things we have in our homes. All of little Gadgets and Electronic crap. And it seems we want more and more!!
And everyone freaks out about this Tax Rebate thing. It will be nice to get some money in our hands. But if you make 150k+ and are complaining about not getting your rebate… Go in your room and find one of your expensive designer purses or pair of shoes that you don’t wear anymore and sell it and there you’ll have your $600.00 that you’re griping about.
All forms of government are not perfect. All you can do is live your life and do the right thing. Let’s face it, some people have a low self esteem and are just plain ignorant will never amount to much the government is the one choosing to give them your money. They aren’t stealing it.
Humble yourselves people.
It will save you from a heart attack when you’re 55.
And when you think about it, it is really the media and the big corporate giants who are to blame. Making their clothing line seem so “fashionable and luxurious” they hike prices up for everything and we want it because we have to have brand name. It costs them .50cents to make a shirt we pay $45.00 for it. Those people are the real criminals. The high unfair prices they put on their clothes and goods when they are already rich enough is disgusting. Those are the people who are not looking out for us. And we are stupid enough to buy these things. That’s why people who make a good earning don’t have any money anymore because they are so concerned with buying expensive things! You can get by buying things that are reasonable. Materials will NEVER make you happy. EVER EVER EVER.
Focus on the fact that you’re breathing.
SCREW this whole rebate thing. This is to boost the economy, not your wallet. They are advising us to go and spend it. I bet big clothing line owners are sitting there laughing being like, “oooh i cant wait to get this extra 3 million these tax rebates are going to bring in”.
think about these things.
humble yourselves.
This isn’t to boost the economy. It is to make the busy bodies in D.C. look like they care. The rebates will not affect the economy because people only change their habits for lasting change.
And “humble yourselves”? What the hell is that supposed to mean? I didn’t know that Kohls and Wal-Mart (and the odd Men’s Wearhouse suit) clothes were high fashion.
I see plenty of comments but very few answers. I googled my question and got this site. My question was what figure they are considering your income. Is it your AGI or your actuall income. Does interest received count. Alos for my mother who lives on a fixed income of social security does she qualify for a rebate……Thanks Mike
Will a person who does not pay Social Security still get the rebate?
I MAKE AROUND 40,000 I FILE JOINTLY WITH MY WIFE WHO DOES NOT WORK AND HAVE TWO CHILDREN. DO WE GET 1200 FOR COUPLES OR 600 CUZ SHE DIDNT WORK? THANX
NO NO NO, All wrong!! This is a REBATE check, therefore you do not have to pay it back, it will not come out of your taxes for this year or the next. However our childrens children will be paying for this debt that our Country is going into, not just because of these rebate checks but because of the war we are fighting as well.
I find it interesting they are trying to get this money into circulation but denied the proposal to increase food stamps for the poverty stricken. I am sure if they had included that in their idea the money would have been spent as soon as it was received but instead lets give it to mr and mrs suburban SUV so they can buy little chad a new ipod screw the starving.
Although it will be nice to get a check I could enjoy for a day or two, who is going to pay the bill. The government continues to mortgage the futures of our children and grandchildren. When the amount of taxes you pay in all forms user fees ect. combines to becme more than 50% of your gross income then who is in control of your destiny and what becomes of freedom.
This rebate will only increase taxes at some point.
OK I AM MARRIED AND HAVE THREE CHILDREN OVER 18 AT HOME ( PLEASE HELP ME)–MY WIFE AND I FILE JOINTLY AND WE WOULD QUALIFY TO RECEIVE THE 1200.
MY QUESTION IS OUR THREE CHILDREN ALSO QUALIFY FOR THE REBATE AS THEY ALL HAVE JOBS AND MADE OVER 3000 DOLLARS AND HAVE EACH FILED TAXES. DOES EACH CHILD GET A REFUND OF 600?? AND IF THEY DO DO MY WIFE AND I ALSO QUALIFY TO GET A REFUND FOR THE CHILDREN ALSO?? THEY ARE ALL FULL TIME COLLEGE STUDENTS AND WE WILL BE CLAIMING THEM ON OUR 2007 TAX FORMS. THEY CHECKED THE BOX THAT SAYS SOMEONE ELSE IS CLAIMING THEM ON THERE TAXES.
With all the confusion out there, I wish there was a more concise forum for organizing all of this information:
Here’s a couple of very thorough links I came across that might be able to help:
http://www.bargaineering.com/articles/2008-tax-rebate-stimulus-package-explained.html
http://abcnews.go.com/Business/story?id=4264901&page=1 (there are also a few more helpful articles on this site if you type in the words – tax rebates – in the search engine.
I was originally trying to determine any tax rebate I might be entitled to – as a 19-year-old full-time college student (who lives at home; with no job). As I suspected, from what I could gather – it basically boils down to the answer being: “no” – if you didn’t owe any income tax for 2007, unless you were exempt from paying taxes, but still made at least $3,000 in earned income, perhaps through Social Security benefits, veteran’s disability payments, or a combination of both.
Anyways, I hope that might be able to provide some help for people who have similar questions to mine. But, I guess it probably follows pretty common sense that your parent (or parents) would be the ones to receive the tax rebate (seeing as how I’m the freeloader mooching off my parents
). Of course, I’m only speaking for myself – and am actually starting a new job next week, so while trying to save enough money to move out, every little bit helps – and I was trying to see it this tax rebate might apply to me and help out my situation.
So, for anyone else looking for a similar answer to this same type of question, I hope this might provide some help; and if I’m wrong, or way-off-base, please feel free to correct me. I ,tried to do a fair amount of research beforehand.
So – enjoy the benefits of your temporary windfall – and since this rebate will technically be an advance payment on your 2008 taxes – enjoy the anxious anticipation of your refund next year that could be more or possibly less! depending on the strength of your 2008 income.
Anyways, I guess my sarcasm is a little hard to shake, since I’m not exactly convinced Bush’s intentions are pure(?)
Regardless, good luck on finding the information you’re looking for, and the tax rebates to come.
Jack Dayton
With all the confusion out there, I wish there was a more concise forum for organizing all of this information:
I was originally trying to determine any tax rebate I might be entitled to – as a 19-year-old full-time college student (who lives at home; with no job). As I suspected, from what I could gather – it basically boils down to the answer being: “no” – if you didn’t owe any income tax for 2007, unless you were exempt from paying taxes, but still made at least $3,000 in earned income, perhaps through Social Security benefits, veteran’s disability payments, or a combination of both.
Anyways, I hope that might be able to provide some help for people who have similar questions to mine. But, I guess it probably follows pretty common sense that your parent (or parents) would be the ones to receive the tax rebate (seeing as how I’m the freeloader mooching off my parents
). Of course, I’m only speaking for myself – and am actually starting a new job next week, so while trying to save enough money to move out, every little bit helps – and I was trying to see it this tax rebate might apply to me and help out my situation.
So, for anyone else looking for a similar answer to this same type of question, I hope this might provide some help; and if I’m wrong, or way-off-base, please feel free to correct me. I ,tried to do a fair amount of research beforehand.
So – enjoy the benefits of your temporary windfall – and since this rebate will technically be an advance payment on your 2008 taxes – enjoy the anxious anticipation of your refund next year that could be more or possibly less! depending on the strength of your 2008 income.
Anyways, I guess my sarcasm is a little hard to shake, since I’m not exactly convinced Bush’s intentions are pure(?)
Regardless, good luck on finding the information you’re looking for, and the tax rebates coming your way.
Jack Dayton
ok,i worked the first four monthes of 2007,then started drawing my social security. i file jointly,with no children at home. i earned more than $3000 and paid taxes. will i still receive the full $1200.00, even though i received social security the last eight monthes?
I think that the people who do not pay taxes should NOT get a rebate. As far as the disabled vets, I think all of them deserve something no matter what their income is. I don’t think these seniors that do not pay income taxes should get anything. Most of them will only bank the money anyway. They are too tight to spend it. I know someone who draws Social security from her dead husband and her son who draws a disability check (and he’s not disabled), there is some type of work he could do. This womans dead husband didn’t even pay in what this woman draws between her and her son. You mean to tell me that they would get $300.00 each. Reducing our tax rebate so we can continue to give it to these people who don’t work and won’t work. Once again, taking from the tax payers to give to these people again. Something is wrong with this picture. DO NOT GIVE MONEY TO PEOPLE WHO DO NOT PAY INCOME TAXES!!!!
Someone explain….if there are 300 million plus Americans, how come this package costs $150 billion?
Just a few points:
Re: Who should get money:
If the premise here is to stimulate the economy, then if they spend it on goods (and not debt), how does it matter who gets it? There are arguments that high-income people shouldn’t get it because they don’t need it, or low-income people shouldn’t get it because they didn’t contribute to the tax system, or illegals shouldn’t get it because they aren’t citizens (although it should be noted that the only way they COULD get it is if they have been contributing to the tax system under a false SSN, and then, doesn’t that kind of nullify the argument that they come here, make a bunch of money, and then don’t contribute to the system? Hmmm…). But the fact is, whoever gets it, what really matters is how they spend it, and that is not something that could be legislated unless they gave out gift certificates to Sears and Best Buy.
Re: Single mothers:
I can’t believe how sexist and utterly ignorant some of the comments on single parenthood have been. First of all, couldn’t there be single fathers in the same situation? There are, I personally know two, and they have the same issue. Second of all, while it is true that sometimes people make bad decisions to begin with, many, many times people also confront situations outside of their control.
For example, my roommate’s husband was terminally ill, lingered for three years before making her a widow, and even with his very good life insurance plan, she still has debt from enormous medical bills and other expenses incurred while taking care of him during his life. He made good money when he was alive, made all of the right end-of-life planning decisions, and still, because the health insurance industry is so corrupt, he incurred more debt for his wife to pay than his very reasonable insurance payout could cover. Now she’s a single mother in serious debt, despite the best laid plans.
My sister was married for thirteen years and had two children with her ex. They made a reasonable income and got along fine, were good parents, there were no signs of anything wrong with him or with their relationship, until she caught him molesting his own daughter. Now he’s in prison, and she’s a struggling single mother with two children. Again, best laid plans.
My cousin was married to a perfectly nice girl, they had two kids, made a modest but sufficient income, and everything was fine. Then he caught her in bed with his friend. Should he keep her around just to avoid being single? Even in the bible it says the innocent mate has a right to divorce an unfaithful spouse, so if God condones divorce in that instance, who is anyone else to judge what someone should do in that situation?
I myself, though I have no children, was with a guy who seemed like a winner: hard-working, god-fearing (so I thought), respectful and respectable. But he turned out to have severe problems that simply were not evident when I first met him. We could very easily have had children, and then I would be one of those struggling single mothers, but it didn’t happen. So, circumstances that I did not maneuver make me a seemingly responsible, childless college-graduate with disposable income, and the same unmaneuverable circumstances made my sister and roommate both single mothers in debt. They are much more hard-working, and through experience, wise, than I am. So clearly, Leo and his ilk are ignorant.
Re: Low income people:
My mother never made more than $13/hr in her life, and she is the hardest working person I know. She did a back-breaking, very physical job, sometimes 70hrs/wk, to take care of her children. She tried going to college when we were kids, and couldn’t manage it alone, because she had to work at least 50rs/wk to afford us. She didn’t finish school, but she did a damn good job raising us.
If you think that poor people are poor because they choose to be, then you don’t personally know any working poor people. My mom was another victim of circumstance; kicked out of her foster home on her 18th birthday, in an era when marriage and children was the only viable option for most women, struggled with no job skills for a year until she got married at 19 and then left him when he tried to kill her and her small children a couple years later. Single, struggling mother for the rest of her life. Is that her fault? No. She never complained about it, just went about her business taking care of us and breaking her back working for this crappy state’s government. Now she’s still poor, due to a disability caused by her government job, for which they pay her a whopping $1,000 a month.
It’s really easy to stand up and criticize the poor for creating their own problems, but those who do so conveniently do so from a distance, because if they knew the average working poor person they wouldn’t make those claims. Yeah, some poor people make poor choices, but most are products of their circumstances. If you believe that poor people make themselves poor, and rich people simply make better choices, then how the hell do you explain Paris Hilton? Nicole Ritchie? Every drunken, partying offspring of the rich and famous? Obviously, they are mere products of their circumstances, so isn’t it a convenient viewpoint for you to believe that, even though clearly not all — or I’d venture to say even not MANY — rich people are in those circumstances due to personal choices, all or most poor people are? It doesn’t make any sense.
Even middle class: How many of the people making $75-$200 K in this country come from families who could afford to send them to college? My mom couldn’t even dream of helping me; I worked my way through college. For the average student who doesn’t work college is hard. Working at the same time is REALLY hard; it took me 10 years to get my BA. So yeah, it can be done, IF your circumstances allow it (I happened not to get pregnant while my sister, who made the same choices as me, did; I’m reasonably smart and schoolwork was easy for me, my brother is dyslexic and struggles to read). But, all other things being equal, a person from my background has to work twice as hard as a person whose parents support them through college. So how is it that the same amount of effort (say, 40 hours a week studying full-time or 40 hours a week working full-time) makes a person who had extra help from their family more hard-working or respectable than a person who had no help and so, instead of expending the additional effort I did, simply resigned to a fate of lower income, because it’s what they know? The logic once again doesn’t make sense.
In short, people need to stop judging other people when they really don’t know what it’s like to be in their position, and stop claiming entitlement to a tax rebate that isn’t even based on merit IN THE FIRST PLACE. It’s an economic strategy, plain and simple, based on the economic principle (which you may or may not agree with) that people in a certain income bracket are the most likely consumers of the market they’re seeking to boost, and it has nothing to do with entitlement to begin with. If it did, nobody would ever agree on what makes a person worthy, because we’re all so judgmental of situations we don’t even understand. So, let’s get over it, huh?
wow look at all the money hungry people out there,with all the bitching and complaining going on i can’t believe my eyes,me and my husband are a young married couple with a 10 month old baby and we both work very hard so that he can have the life that we didnt get to have,its horrible how some people are complaining about the elderly,the vets and the disabled ,they deserve help just as much as the next person.its ridiculous how everybody is acting use your heads
Please let me know if I am in the right spot, I am looking to make money on hte net, I have no moet, and my por 12 year old suufersfor it.
Please let me know if t
If the person didnt pay income taxes and gets a rebate it is just like the people that get back more than they paid in due to the earned income credit. Both are totally wrong and is exactly what the Democrats are all about. Income redistribution which is communism at it’s best. Because my wife and I went to school, which we are still paying for by the way, and work hard, we get to support those who refuse to do the same.
If I owe federal taxes this year will this rebate apply towards that, or do I have to file, pay my taxes ($1100), and then wait for a check to be mailed?
Tax Rebate Stimulus Package:
From what I understand about this stimulus package, the money is being “borrowed” against our 2008 income tax return filing. That is why the government is waiting until AFTER the 2007 tax filing deadline of April 15 to begin sending out the checks.
Think about it, the stimulus package is supposed to be a way to distract the American people by “giving” us our own money this year from what we could be getting next year. The fact that no one has decided to make this THE topic of discussion is beyond me. This is what we as Americans should be talking to our representatives in Washington about because they are mortgaging our future (new year’s tax return possible return) for a few dollars this year. Is this the way that we want to stimulate the economy?
We need to speak up as a nation because those making the decision about this stimulus package are telling us what we want to hear (get money now!) without our best interest at heart. They want to get re-elected. Is that what we want? We cannot change anything if we do not DO anything. I am going to DO something about it.
AMERICA, LET’S DO SOMETHING ABOUT IT AND QUIT COMPLAINING ABOUT IT FROM THE COUCH OR BEHIND A COMPUTER.
I tried to read all the responses but yikes..some were so awful. I have a question. We meet the income guidelines and my husband paid in $4000 to income tax. We ended up getting it all back with our refund this year. Do we get a refund or since we got all our money back…are we disqualified?
Thanks!
To reply to Anonymous responds:
Posted: January 29th, 2008 at 10:20 am
Most single moms get a “tax rebate” every year on taxes they don’t pay, just because they don’t earn enough and they have kids. This rebate should only be for people who pay taxes. And no you shouldn’t get to count an extra person who isn’t there in your household, he can’t be counted twice and you know that he has most likely paid his fair share of taxes on an income that he didn’t recieve because of child support.
You know what makes me sick is I’ve heard some single moms asking if this rebate could be used as income for child support or if they could take it for arrears!
AMEN!!!!!
I do my mother’s taxes every year…..she makes 16K a year, pays about 1K in income taxes and has 2 kids under 18. So every year, she gets back $7300 in an income tax refund because of the earned income credit and child tax credits. She certainly won’t marry her boyfriend because they’d lose out on on the free money!!! It makes me sick every year.
Meanwhile, me and my spouse get to pay taxes out the nose on income we don’t even get to take home because of child support. Plus on top of everything else, now she is going to get another 1800 in a tax rebate on top of her 7300 income tax return…..so, she will have received 9100 in FREE money from the US government……HELL, she could nearly quit her job.
GO UNCLE SAM
render unto ceasar that wich is ceaers
I have 2 kids I let my exhusband claim one who will get the tax rebait
If you are banking on a rebate that you had no idea that you were getting, then you have some other problems. If you qualify you qualify, no ifs, ands, or buts about it. If you get the $600.00 or $1200.0 + $300.00 per child then good. If you do not get it so what. Personally I am married and made $80,000 and no children. I guess I qualify for it and I plan on going on vacation with the money. A vacation that really was not planned but since I am getting this refund then I can go. I am sorry for all of you that do not qualify but there is nothing that I or anyone else can do for you. I went to college not because I was ORDERED to, but because I WANTED to and try to give my family a better living.
My paycheck is garnished every month for child-support for my older daughter. I filed 2007 taxes as a head of household with one dependent (son) and even though I am low-income because of the garnish of my paycheck, all the tax return is garnished too towards the child-support debt.
Saying this, if I can receive a tax rebate too, would it be garnished for child-support? Help!
Debbie Hundley responds:
Posted: February 10th, 2008 at 2:31 pm
I think that the people who do not pay taxes should NOT get a rebate. As far as the disabled vets, I think all of them deserve something no matter what their income is. I don’t think these seniors that do not pay income taxes should get anything. Most of them will only bank the money anyway. They are too tight to spend it. I know someone who draws Social security from her dead husband and her son who draws a disability check (and he’s not disabled), there is some type of work he could do. This womans dead husband didn’t even pay in what this woman draws between her and her son. You mean to tell me that they would get $300.00 each. Reducing our tax rebate so we can continue to give it to these people who don’t work and won’t work. Once again, taking from the tax payers to give to these people again. Something is wrong with this picture. DO NOT GIVE MONEY TO PEOPLE WHO DO NOT PAY INCOME TAXES!!!!
HOW DARE YOU SAY THAT SENIOR CITIZENS SHOULDN’T GET A REBATE CHECK!! YOU OBVIOUSLY ARE NOT A SENIOR CITIZEN, ARE YOU?? THEY DESERVE THIS REBATE JUST AS MUCH AS THE NEXT PERSON, THEY WORKED ALL THIER LIFE IN THIS COUNTRY. I KNOW OF A FEW SENIOR CITIZENS THAT ARE BARELY GETTING BY RIGHT NOW ON JUST THIER SOCIAL SECURITY CHECK. THEY HAVE BUSTED THEIR ASSES WORKING UNTIL THEY COULD NO LONGER WORK AND NOW THE GOV’T SHITS ALL OVER THEM, IT BAFFLES ME HOW SOMEONE CAN SIT THERE AND SAY THAT A SENIOR CITIZEN SHOULDN’T GET A CHECK. MAYBE SOMEDAY WHEN YOUR A SENIOR CITIZEN AND CAN NO LONGER WORK AND YOU DEPEND SOLEY ON A SOCIAL SECURITY CHECK (WHICH BY THE WAY IS NEVER ENOUGH) YOU’LL REMEMBER THIS POST YOU MADE ABOUT HOW SENIOR CITIZENS SHOULDN’T GET A REBATE CHECK AND YOU’LL THINK TWICE ABOUT IT.
YOU TRY LIVING OFF OF A SOCIAL SECURITY CHECK THAT IS ONLY $350 A MONTH, THAT BEING YOUR ONLY SOURCE OF INCOME AND LETS SEE HOW HOT YOU LOOK!!!!!
THEN AND ONLY THEN COME BACK TO ME AND TELL ME THAT A SENIOR CITIZEN SHOULDN’T BE ENTITLED TO A REBATE CHECK. UNLIKE YOURSELF, I AM WILLING TO TAKE A REBATE CHECK OF LESSER VALUE IF IT MEANS THAT SOMEONE LESS FORTUNATE THAN I WILL BENEFIT FROM THIS STIMULUS PLAN.
This is in response to “Momof5″, I seriously think you are out of touch with todays world. In your “example 2″ about a boyfriend and girlfriend living together and the girlfriend getting pregnant but the boyfriend makes $50,000 a year.
Don’t you know that the welfare department will try to find out who the father of the child is and demand child support payments from him? If his yearly income is $50,000 then the mother would get a good lump sum from the father of her child, which in return would reduce the amount of benefits the department of social services hands to her.
And in your example 4: Do you really think that people receiving some form of Gov’t assistance actually live in upscale neighborhoods and drive fancy cars? I DON’T THINK SO!! The only exception to that would be if the person was a drug dealer. The reality of it is for most people…. if you are considered poor and you are on welfare and the Gov’t has to pay for everything for you and your family then you are probably living in the projects and using the city bus to get to where you need to go.
Sometimes what you think you know, you really don’t know. And thats in regards to the comment you made about these being examples of people you “personally” know.
Just because you think you know someone doesn’t mean that you know 100% of their situation, Im sure they don’t tell you EVERYTHING, and until you are in thier situation you really have to right to comment on it.
THIS IS TO THOSE OF YOU COMPLAINING ABOUT NOT GETTING A REBATE CHECK!!!
I am quite sick and tired of hearing from people sit there and talk about how they got an education and make so much money and then turn around and bitch about how they won’t benefit from this rebate. BOOHOO!!!
What about people who came from poor families and were not able to go to college to get an education? or further more, what about those people who ‘by choice’ could not go to college because of a severe learning disability and therefore must take a lower paying job because their minds do not work in a way that would allow them to make hundreds of thousands of dollors a year, what about them huh? It’s not thier fault that they do not have the ability to better themselves, they are in fact trapped, having to work at a fast food restaurant or another job that pays only minimum wage.
You people should be thankful that you were even blessed with a brain that allows you to advance yourself in the first place. Stop whinning about what you don’t have or what you can’t get from the Gov’t and be greatful for all the things you do have. You know, their are people out there that are less fortunate than you are, and it’s not by choice!!
I am married with 4 kids, and my wife and i made 18,000 this year. I started a buisness so my income is very low this year because i put all the money I made back into the buisness, how much will i get back from the tax refund?
I read a different article that stated this rebate was merely a loan from our 2008 federal refund. Is this true? If so, does that mean I’m going to end up owing next year because, chances are, my husband and I wouldn’t have received a $1200 refund?
If I get a refund this year will we still get the maximum tax rebate? We are filing as married, made about 85k last year and paid taxes but are getting a refund based on deductions like interest, medical exp etc. Thanks
Even though my daughter was born December 20, 2007… will I still get a $300 rebate for her?
I just filed my taxes for 2007 and I didn’t have enough with held so I am going to end up having to pay in this year, will they end up taking the money then or will I still see the money? Does anyone know??? Any feedback would be nice. Thanks!
I hope that people realize that if the Gov’t new you “needed” the money to survive, or that you were going to put in into savings for a “rainy day,” YOU WOULD NOT GET A CHECK IF IT WERE UP TO THEM. This is an ecominic STIMULUS, not a “help the people” package. The Gov’t wants you to spend this money on crap you don’t need, such as a new stereo, or a nintendo wii. For all of those complaining they don’t get enough from uncle sam, just sit tight, Obama will win the presendency and will shut down the tax breaks for the rich, and give us what we deserve for being an american; free health care, unfettered retirement packages, etc. Personally, I’m going to piss this money away because I know there is more where this came from.
What’s all the confusion about “qualifying children” and “head of household status” only getting a single rebate amount?
You can only have head of household status for tax returns if you are “Unmarried-SINGLE-with a dependent (and ….is not necessarily a child)”. If you are still LEGALLY married (hence NOT single) you cannot be head of household to begin with. How can you complain about a single rebate amount for what you are telling the IRS is single person to begin with?
If you child is 17 or less, they qualify you for the child rebate, simple as that. If you get the child tax credit on your return, you will get the $300 rebate amount. If needed, ask you child their age, if they tell you they are under 18, consider yourself $300 richer ask them how many siblings live with them in your house and multiply that number by 300!
What about Married filing seperate? How is that treated with the tax rebate? Which category would it fall into? Married or Single? We filed married filing seperate that is why I am asking. THANKS!
They are basing your rebate on your filed 2007 tax return. It states on many of the sites explaining the rebate that if you don’t file before April 15th or file an extension then you won’t recieve your rebate until December or until next year.
http://www.ustreas.gov/press/releases/reports/fact_sheet_examples.pdf
or search on msn for tax rebate and it breaks it down a little better. But from what I have read the sooner you filed your 2007 return the sooner you will recieve your rebate…
I think that all children who are in school should be counted. I have two in college and they cost me just as much if not more that those in high school. The government needs to give parents of college students a break.
Momof5: Ok, thank you. We do meet the requirements so Whohoo!!!
Momof5 – If your “minimun / maximum rebate theory” is correct, there will be very few maximum rebate checks being delivered this spring. I too have prepared tax returns for well over 20 years, and have seen very, very, very few of my clients EVER owing any tax on the bottom line. In fact, you are a pretty weak tax preparer if it happens, except in rare instances, (those being the self employed owing the additional Social Security Tax).
In other words, with your calculations, NO smart, normal taxpayer will be receiving the maximum $600 amount, as 98% of taxpayers end up receiving a refund and have no tax liability at all. Right?…the min/max amount qualifier is tax liability?
can someone hlep me? in 2007 i was drawing social security and two pensions,one from the military,another one from my job. both two low to have taxes held out,although they are both taxable. will i
be getting a rebate of 1200.00? i am married,and filed jointly. thanks in advance,and, please be nice! i’m an old man…
I have never seen such bitterness, complaining and rancor. It reminds me of the pictures you see on television where aid trucks come into a ravaged area in Africa and any sense of normalcy ends.
Congress, for whatever reason, has decided to provide a tax rebate now on your 2008 tax obligation. Only time will tell whether or not it will do anything to stimulate the ecomomy this year. They have decided the vast majority of of taxpayers will get something. Those fortunate enough to not qualify should suck it up and be thankful they are in that position. For those who bemoan their fate and blame it on something other than themselves, do some soul searching. People do rise above adversity but you have to try.
Granted not everyone has the ability to do this, but the comments here are really vindictive.
Give it a few weeks and you will have all the information you need to determine how much you get if you qualify. My only comment is be thankful you live in America and do not face the problems that people around the world, such as Africa, do. Stop complaining and getting worked up over this. You could be driving over a bridge that decides to implode, so be thankful for what you have and get on with your life.
I think the rebate check should be extended to those of us who do not have jobs and who are trying to better ourselves by going back to school. I have not made enough money to file income taxes for several years. Now I am going to school and will receive my degree this June. There are many people in my shoes that could sure use this money. But, I guess I am too poor!
I can’t find anything that brings this subject up but…A 19 year old who is claimed by their parents (probably the majority of college kids in the country) will get nothing? That sucks. I’ve worked all year and meet all of the requirements (over 3,000 and filed taxes) but i’m a dependent. The law says that for the parents to get the $300 per kid, he or she has to be 17 or younger. Does being a dependent over the age of 17 disqualify me?
I absolutely love the people who post on here that those earning above the arbitrarily set limit of 75-87K who pay the MOST in taxes yet get NOTHING under this plan (yep, that’s me), and then have the temerity to complain even though they are all so well off, well, you people who think that should all realize that you are what’s wrong with this country.
Back when this country was still relevant hard work was something to be admired, not ridiculed.
It is now somehow perceived that being poor is some sort of random plague or germ that can infect the most industrious and hard working of us, and that somehow we all owe those that don’t have all that they want out of life.
Well, I will be the first to give these people something worthwhile.
First and foremost, get off your ass. Get the paper, find a job, any job, and start going. I don’t believe for one minute that anyone who is really driven to succeed, and is willing to go to any lengths to get there, will fail. Just look at all the immigrants that come here with nothing and within a few short years are more successful than the majority of lazy slobs that patronize their convenience stores or dry cleaners.
It is just so aggravating. I made 80K last year, my wife a little bit more, yet we live in Los Angeles where the cost of everything is sky high. We pay out the ass in taxes becuase A) we4 can’t afford a house and B) we don’t think the time is right for us to have kids? Our reward? A government, and a public, that cuts us out of this deal while paying those who PAY NO TAXES AT ALL and all the while calling us selfish.
I never thought I’d say this but this country sucks, period.
Gas: thanks for your comments…well put.
Matthew Camp – in response to your comments. You raise some valid points.. however you have chosen to live in LA where the cost of living is sky high and you have chosen to not have children. Don’t use your personal choices as a reason to bark at those of us who have chosen differently than you. I realize the government may be selecting to reward others rather than you and your spouse. Just like you made your choices, they did too. Sometimes our choices benefit us and other times they don’t.
When I decided to take a loan 30 months ago with an adjustable rate, that was my choice. My family (of five) and I are suffering from the choice my husband and I made. However, we’re accountable for our choices and we definitely know better than to ever do that again. We went from a 6.5% rate to 10.99% in the past seven months. We actually qualify for some assistance from local non-profits and employer financial crisis funds. However, we’re choosing to decline the use of those funds since we’re not disabled, unemployed or victim’s of anything except our own poor choices. We’re on the verge of giving up our home to the bank and resting on our priniciples is getting more and more difficult. But we all must be responsible for our own actions, choices and decisions – even if the government doesn’t deem them “worthy of stimulous money.”
Why do so many of the posters here seem to think that those of us who DON’T make 75k per year are sitting on our asses without jobs? Some of us work damn hard, pay taxes, aren’t suffering from some “poor plague” and live in places where pay is not in line with education or experience.
I live in central MN — nowhere near a metro area — the cost of living here is low — but with that comes low pay as well. If I chose to live in a metro area I could be making enough to disqualify myself from this rebate based on the education and experience I have, but I like the quiet, clean, unpolluted and less crime-ridden life better.
I have three kids — the result of my dreams of having a dual-income family — but 2 years ago I watched deadbeat dad walk out one night and not come home because he couldn’t handle the responsiblity anymore. I have always worked hard — since I was 15 growing up on my dad’s farm. Now I work HARDER because the well-being of 3 children hangs in the balance. I don’t receive child support from deadbeat dad because he doesn’t think working is worthwhile and he’s smart enough to know if he gets caught working they will send a substantial amount of his paycheck to me.
Sometimes more than one job at a time. I am intelligent and contribute to society. I create jobs (think about that…every time I leave home for work someone ELSE is getting paid to watch my kids). I am not on assistance even though I could be. Believe me, I pay taxes.
Before you paint everyone with the same brush, think about some of us down here in income brackets below you that get up every single day and work hard and pay our taxes — some of us who don’t qualify for EIC because we DO work and DO contribute — some of us who turn down assistance because someone ELSE needs it more than we do.
I understand that some of you who will not qualify for this rebate are working just as hard and often in circumstances similar to mine that prevent you from being able to afford extras. I understand why you feel like the rebate isn’t fair. I simply ask that you DO NOT assume for one minute that everyone down here in the brackets below you is a deadbeat — because those of us that aren’t are mighty offended by your assumptions.
This may have been answered but I my eyes got tired trying to read every post since friday. Many have stated that we could end up paying some of this back on next years taxes. That is partially true. I just read an article at CNN money that this is a temporary 2008 tax cut/credit and it will be applied as a credit to our 2008 taxes. This means if you get a $1200 rebate and you normally would get a $1500 refund then you only get $300 when you file your 2008 taxes…..however, if you get $1200 and you usualy only get a $600 refund you don’t pay the difference. You won’t get that $600, this is an advance on that, but you don’t pay the extra $600, you get to keep that.
And for those that complain that this is just for the Economy and that is the only important thing….of course it is!! (Didn’t someone once say “It’s the economy, stupid!”) With a down economy it affects everyone…jobs, real estate, prices in general….we spend this money and it will boost the economy and shorten the recession thus improving everyone (in theory, but a fairly accurate theory).