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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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I just want to know one thing. If I get this magical check and spend it, will my 2008 tax rebate be missing that much money from it? If that’s the case, I would really rather not even cash the thing(is that an option?). I don’t need the money now. I already got my tax return and used it to pay off whatever CC debt I racked up over the year, and this would end up bothering me more in 2008 than it would benefit me now.
WHO THE HELL DO YOU THINK YOU ARE DEBBIE HUNTLY.. AN IGNORANT WOMAN. FIRST OFF YOU DON’T KNOW IF HER SON IS DISABLED YOUR NOT A DOCTOR.. HE COULD HAVE A BAD HEART AND YOU DON’T EVEN KNOW THAT. JUST BECAUSE YOUR NARROW MINDED EYES CAN’T SEE THAT THEN YOU MIGHT AS WELL BE BLIND. I AM DISABLED……. I RECEIVE 644.00 PER MONTH TO LIVE ON AND EACH YEAR I GET A RAISE BUT THEY TAKE IT OUT OF OUR FOOD STAMPS. I GUARANTEE THAT YOU DO YOUR PRECIOUS LITTLE NAILS, GO GET YOUR HAIR DONE AND GO OUT WITH YOUR GIRLFRIENDS FOR LUNCH COSTS MORE THAN I LIVE ON. NEVER HAVE A MET A SELFISH LADY.. YOU ARE SO FORTUNATE THAT YOU CAN WORK AND ACHIEVE GOALS LIKE BUYING A CAR OR A HOUSE BOTH OF WHICH WOULD BE MORE THAN MY CHECK.. MY DREAMS LIKE THAT, GETTING HURT ON THE JOB ARE GONE AND I’M LEFT WITH A LIFETIME OF POVERTY. YA, RIGHT IF WE GET THE REBATE WE’LL JUST STASH IT AWAY.. NOT LIKE WE HAVE TO LIVE ON IT.. YOUR AN IDIOT AND YOU WILL PROBABLY DRINK YOUR REBATE AWAY. YOU BITCH!!!!!!!!!
Its amazing how folks buy into this–we’ve become a country that puts out our hand for whatever the politicians deem will distract us.
Was America ever a country that had folks that’d stand on their own and work for what they wanted?
It’s disheartening.
So if this is just an advance on next year’s rebate, why is it costing the government $187 billion (or whatever the number was?) If it’s an advance, it would cost them NOTHING because everyone has to pay it back next april.
Ok, so as a stay at home mother who literally just re-entered the workforce, unfortunately I did not make enough money to qualify for the rebate. One of my first questions……..I understand I won’t get anything back for myself, but what if I had claimed 2 children, would I get the $300/child credit? Also, my fiancés federal taxes are withheld every year to pay off his student loans….does this mean he wouldn’t be cut a check as well? He too claimed one of our children, so if he is not eligible for a rebate, would he as well still get a per-child credit? Any answers would be greatly appreciated since the IRS has still not been able to give me any!!
To the people fussing about this money should not have an income cap: I don’t care where you live, if you make over 174k with 3 kids in daycare you are still doing well and getting a rebate for you would be useless. People with that type of income would save the rebate in a saving account and not spend it. No, you are not being punished. If you were the President and had to make a decision that would stimulate the economy what would you do? How would you calculate how much a person making 180k pay in taxes. If I every see the day when I will make that or more than 180k, I guarantee that I will not complain, that is apart of serving my country, that is apart of America.
Read my other response from 2/5
Sir. are penisons earned money also are social sec. earned money senors who worked 30 or40 yrs. & paid taxes will they get rebates. will you ans. these on my email thank-you.
So if I would of gotten lets say 400 dollars back next year on my 2008 tax return now I will owe 200 bux to the government??? So if I dont pay that back right away I will have to pay interest on that 200 bux,, and I have no choice I have to take the rebate?? I dont think that is right??? And where is this money coming from that we are getting,, where is the government getting the billions of dollars for this???
Quite complaining and consider yourself damn lucky to get anything.
Whether this is a “rebate” or “stimulus” really doesn’t make a difference to me. The intent of this, as I see it, is to inject some capital into our economy to promote some growth through consumer spending. Regardless of your income range, I think it’s pretty safe to assume that if we have it in our pocket we will spend it.
I also really can’t stand the people that want to villify the “rich” people. They must think that those “rich folk” are just sitting in their big houses, smoking their cigars aftyer dinner while their live-in help cleans up after dinner. I just looked at IRS statistics from taxyear 2004 (latest year available).
Take a look at these statistics:
Of theindividual income tax returns filed in 2004, only 12.4% of taxpayers had adjusted gross income of $100,000 or more. The other 87% of taxpayers that filed made less than the $100k. Keep in mind that this doesn’t even take into account those people out there that either did not have to file a return of decided not to.
Here’s the punchline, those 12.4% of taxpayers (which I am a part of) PAID 64.7% OF ALL INCOME TAXES COLLECTED IN 2004. So before you go painting a picture of the “fat cat” think again. I’m tired of the Democrats crying about “tax cuts for the rich” – we’re already paying a huge disproportion of the total but you wan’t more???? If you give a tax cut or rebate, shouldn’t it go back to those who actually paid the money in??? I know that even though I don’t “need” the $2,100 (married with 3 kids) I sure as hell feel that I am just as deserving as any other taxpayer to receive this payment.
I have been very fortunate, and am very thankful for the blessings I have received in life. But make no mistake, I have worked VERY HARD to be in the position I’m in. Please don’t make me into an enemy.
Just wondering how this works for fathers owing back child support. If he gets a rebate, would it automatically go to the delinquent balance of child support? It’d make sense to do so. Let him have the $300 for each of the 2 children he claims on his taxes, but give the $600 to his child that he hasn’t supported for 4 years.
I’m the contrarian and I’m glad this bill passed. It is basic economics that borrowing at low rates to fuel growth at an almost guaranteed higher rate is a good thing. We can argue about who should get the money all day but what matters is that we will grow our GDP and that will help EVERYONE. I’m certain that even those who don’t get a check in the mail will still benefit at least as much from this legislation.
I HAVE THE ANSWERS FOR YOU!!
Do I qualify for a rebate and how much can I expect?
One-time rebates will be sent to at least 117 million low- and middle-income households, 20 million senior citizens living off of Social Security, and 250,000 disabled veterans.
To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.
Adjusted gross income is not your annual salary. It’s equal to gross income minus “above the line deductions,” which are reported on page 1 of the 1040 tax form. Above-the-line deductions include deductible IRA contributions, alimony paid and, for the self-employed, some portion of money spent on health insurance or Social Security.
Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200.
In addition, parents will also receive $300 rebates per child under 17; there is no cap on the number of qualifying children eligible.
An example: A couple with one child and $100,000 in AGI will get a rebate of $1,500 ($1,200 + $300). If they have two children, they will get $1,800 ($1,200 + $600).
Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income – which can include Social Security and disability payments – will get $300 rebates per person or $600 per couple.
Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in earned income or $3,000 in Social Security benefits or certain veteran’s benefits will get $300 rebates per person or $600 per couple.
I make more than the income caps. What about me?
You might get a partial rebate. It depends on how much your income exceeds the caps.
The stimulus legislation allows for a 5% phaseout rate for households above the income caps of $75,000 for single filers and $150,000 for joint filers.
That means that for every dollar a tax filer earns above those caps, he or she will lose 5 cents of the rebate, said Jason Furman, senior fellow at the Brookings Institution.
Put another way, the rebates of those taxpayers will be reduced by the amount of income above the cap multiplied by 5%, said Mark Luscombe, principal analyst at tax information publisher CCH.
Take a couple with two children. If they make less than the income cap, they will likely get an $1,800 rebate. If they make $15,000 more than the cap, they will see their $1,800 rebate reduced by $750 ($15,000 x 0.05). So instead they will receive a check for $1,050 ($1,800-$750).
A childless couple whose AGI falls below the cap will likely get a $1,200 rebate. But if their AGI exceeds the cap by $15,000, their rebate will be reduced by $750. So they’d get a check for $450.
Single filers with no kids and an income below $75,000 will likely get a $600 rebate. But if they made $80,000, their rebate will be reduced by $250 ($5,000 x 0.05). So they will get a check for $350 ($600-$250).
The point at which the rebate gets phased out entirely will vary. For example, a single filer with no kids whose income exceeds the cap by $12,000 or more will get no rebate, because it will be reduced by an amount equal to or greater than the $600 ($12,000 x 0.05 = $600).
Do I have to pay the rebate back?
No. And here’s why.
Your rebate is a one-time tax cut – an advance on a credit you’ll receive on your 2008 return.
It’s based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you’ll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.
“If you were supposed to receive a larger payment than you did, you will get the extra money,” said Treasury spokesman Andrew DeSouza. “If you received more than what you should have gotten, you will not be penalized.”
What do I have to do to get one?
You must file a federal tax return for 2007.
Some people are normally not required to file a return. To get the rebate, however, they have to file a federal tax return.
So when will I get a check?
Treasury Secretary Henry Paulson said Thursday night that the IRS will start sending out checks in early May. Last month, he said it should take about 10 weeks to crank out all the checks. In all likelihood then, you’ll see the money sometime between May and early July.
That assumes, of course, that you hit the IRS deadline and file by April 15.
If you’re a laggard and have to file for an extension, you’ll still get a check but it may not come until the end of the year – probably in time for Christmas shopping.
I hope that helps to answer some questions
I agree completely with JT. My husband and I also struggled for several years. He lost his job when they moved production overseas. I had no job skills at the time. I learned that just about everyone is guaranteed approval for student loans and there are grants for the low income to help break the cycle so I decided to change my future. It was hard work and exhausting to balance working as a waitress with two kids and attending college full time at the age of 30. Most of us have the same opportunities and it is up to each individual to make that choice. Assistance should be temporary or go to those inviduals that truly do not have the ability to learn job skills for whatever reason I do feel our tax system has issues along with the welfare system, health care, and many government programs. There are people that truly need assistance due to disabilities that need and deserve assistance but unfortunately there are so many people that abuse the system. I do understand marriages falling apart, people losing jobs and the need for temporary assistance. I do admit to being somewhat resentful when I see families not attempting to get back off of assistance and watch the cycle repeat with the next generation. I’m not strong in economics but the economic stimulus plan seems like a very short term fix. It seems we need to promote production in the United States where we are sending factory jobs to China. We are sending Customer service jobs to India. Corporations are making record profits and the small businesses aren’t able to compete. We will need to bring in workers from Mexico for construction and skilled trades jobs that us Americans feel we are above doing and then we are going to be upset about that. Yes, the package will help my family and I’m sure I will put it back in to the economy but we are due for a longer term solution to keep decent paying jobs in the States.
After reading everyones opinions and comments on this page, I am appalled at some of the ignorant responses. For starters I’d like to say: You paid taxes!!!, You worked Hard!!! Big Whoppee Doo! Had a hard time making ends meet? Well what about those people on Social Security? What do they get? They worked and paid taxes most of their lives, now they draw a disability check! Try and make ends meet on that kind of check a month!! People on diasbility get a cost of living increase once a year! Oh Wow! This doesn’t cover anything! Look at the price of gas and food! Look at the price of Medicine, which by the way…Medicare doesn’t have that good of a prescription drug plan! The Price of Heating fuel is over 600 dollars for 250 gallons of gas…Oh Lets get energy assistance! Your still short over 200 dollars, and nobody will deliver gas for under 250 gallons…Where do people on disability get the rest of the money? A lot of them can’t…So lets let them freeze!! Right! The low income and elderly just need to freeze to death or starve!! But hey..thats okay..at least we’ll do it in our own homes, where noone else can see…Because most can’t afford to buy gasoline for their frickin car!! Oh and lets not forget the required auto insurance!!! But hey, what do we need a car for?? Food Stamps!! A elderly couple gets around 20 dollars a month! But their old…they don’t need much food! Right! I know, just like a lot of you out there, just how hard it is to make it from month to month! A lot of you ignorant people out there talk about people getting handouts as you call it and don’t have to work! Well some people can’t work, and some can’t help it that they worked their asses off for years and just had the misfortune of becoming OLD! Shame on them! Just remember this..You too will be old one day! Or Disabled! Then all I can say is; WELCOME TO OUR WORLD!!!!
I have a sister-in-law who did not work in 2007 (lived off child support) but has 2 children, will she receive $300 for each child?
I have a sister-in-law who did not work in 2007 but has 2 children(lived off child support). Will she receive $300 for each child?
This tax rebate actually is a rebate against your 2008 taxes, even though they have not yet been filed. Even though this rebate is actually for your 2008 taxes, it will be based upon your 2007 AGI. When you file your 2008 taxes in early 2009, the calculation will be run again. If you should have received a larger rebate, the treasury will send you another check to make up the difference. This would apply to people who had children during 2008, or those whose 2007 AGI was above $75,000, but dropped below that level in 2008. If you income rises and you would have received a lower rebate, you get to keep the difference. At least they won’t ask for a refund! In either case, you do not have to pay back any of this rebate.
You people need to get a life!! Why in the world would you all be waiting to see what you get? Remeber the saying ask not what my country can do for me but what I can do for my country? I am not even looking for the check. Why sit around waiting for someone else to bail you out?? Do not spend what you do not have and you will not need bailed out you can make your own way. What a bunch of begging crying losers.
WHAT HAPPENS TO PEOPLE THAT OWE IRS FOR 2007? DOES THE IRS KEEP IT?
half of you sound like greedy jerks. saying why should someone who didn’t pay taxes get a rebate, so they can buy weed and sit on their asses…and what percent of people would that be? .01 maybe? what about single moms who were laid off? maybe they paid out the ass for years and the year they review they didn’t pay, does that mean they shouldn’t receive some relief? Someone who hurt themselves early on in the year and are getting crappy disability payments, there are many scenarios here.
This relief is aimed at people who are not financially set in their lives, people who may be having problems financially, people who work hard and don’t get anywhere. To have them pay bills or buy what they normally couldn’t afford and pump the $ back into our country’s economy to avoid a recession.
No, some 19 year old who barely paid in and lives with Mom and Dad shouldn’t get $ back, but they can’t pick and choose according to each persons criteria, they make guidelines to make it more simple, unfortunately some people still get screwed and some people make out…that is the way the world works.
look at you all salivating to get your money and ready to chomp at the bit if you think someone who paid little to no taxes gets a rebate…like they’re getting your money…it just goes to show you what a sad world we live in.
That being said I did pay taxes and have since I was 19. I am under the $75k single ceiling and will receive probably $600 for that & $300 for my son, I’m a single Mom. So I was making an observation based on looking at all sides of the story and not my own before some of you attack me assuming I’m a lazy pot smoker or something.
All of this has been hard to read. I came here for the first time just looking for some answers about how all of this would affect 2008 returns. I had questions about whether this package is truly a rebate or if it is an advance. After 10 minutes of reading, my brain hurts. Man, can we get some love here?
First, I think I got my answer. It is an advance, but it is an advance on a 2008 credit. In other words, when 2008 returns are calculated this “NEW” temporary credit will be allowed, theoretically zeroing out the money received. If you got more money than the credit would allow you don’t owe it back, if you did not get as much as it would allow (IE. you have a baby in 2008) you would then be due the additional money. In other words, for most people, it should not affect the amount of money you owe or are due back, it is a “NEW” temporary credit.
I am sure someone will let me know if I got this wrong.
Thank you from Texas!
PS. One last thing, regardless if you get money or not, this package was not designed for personal debt relief, it is supposed to get the economy “kick-started”. If it is successful, everyone wins, more jobs, lower prices, etc.
We all know who doesn’t pay their share in taxes and yet benefits from the current administration. CORPORATE AMERICA. All the buddies in the Republicans back pockets making money off Americas tax dollars. Whether in Texas or Iraq. Big business is the one we all need to look at. For example, the record profits cited by the oil companies and yet gas is $3.00 a gallon. Stand together my fellow Americans. People making 175,000 a year are not the enemy. The Corporate Giants makking billions of our backs and not paying squat. That is who we should look to for increased tax revenue for our country.
You know what? I wish the Good Ol’ USA Gov.’t take their stinkin’ $600 & SHOVE IT UP THEIR A_Holes !! Yeah, a LOT OF GOOD $600 does when you can’t afford Medical Insurance for either yourself or your family and diagnosed with Colon Cancer. $600 is a CROCK !!
WOW what a crock of Shit! We should have an option since it is essentially our own money they are forcing us to take a loan out on next years tax returns. NOT Cool at all and they they try to advertise to the public as though its free money, cause they know most americans wont question or research it! What the hell will they do Next……Start throwing our social security money out of planes and tell america it raining free money COME ON!!
ok..some of you are going a little overboard with the drama. Good grief!
This money would be coming to you next year as a tax refund. Not less than you got this year…not a deduction of your precious money. It would be EXTRA that you would get next year. You will still get your precious refunds people. I think you are reading WAY more into it than there really is. Ex – this year you got $1500 in refund. Next year you should get $2100 but since they gave you $600 early, you’ll still get your normal $1500. No big losses…nothing that is going to cause you immense pain or suffering.
Please – take a huge breath and give us all a break!
Okay. I am a stay at home mom with children ages 7, 9, 17, and 18. My husband makes about $121,000 per year. I live in a part of the country where the economy is excellent and we are middle class. We are considered “poor” by many of the people in our community because it has boomed tremendously since we settled here, and if we were buying at today’s values, we could never have afforded to live in this area in which we purchased all of those years ago. We are living the American dream. We have a lovely home in an affluent area, we drive late model cars, our kids participate in private club activities, go to college and bring friends with them on yearly family vacations. We enjoy every penny of the money that my husband earns. We also pay taxes out of the money he earns. If the government wants to give us back some of the taxes he pays in, goodie gumdrops. I am happy to get it. I think they should not, however, give the money he earns to others who are not paying into the tax system. I am irate that the government requires us to give any portion of our income to people THEY deem needy. My husband and I are very generous people. We tithe to the church, we give to fundraisers within our community, and we give even more generously of our time. I am tired of seeing my husband’s hard earned money go to pay for college for girls who got themselves pregnant while in high school. Where is the “I was raised properly” tuition break? I am tired of driving past the gated subsidised apartment community for low income families and seeing brand new cars parked in their parking lots. I am tired of paying $200 a semester for my son’s HIGH SCHOOL text books because there is not enough funding for such extras as Advanced Placement texts while we continue to fund English Second Language courses. My housekeeper asked me not to speak English to her son because she fears that if he learns English before he is three, he won’t be eligible for ESL Pre-K and she will need to pay for daycare when her sister goes back to work full time and can no longer keep him for her. I fired her on the spot. (No, she was not working under the table.) We are taking our return and donating it to a cause WE deem worthy of our hard work. We believe that this is a land of immense opportunity. My husband is the son of LEGAL immigrants, and I am the daughter of a widow of the Viet Nam conflict. We grew up with no advantages and work very hard to ensure that our own children will have it slightly easier than we do. My daughter has dedicated her future to the USAF and will shortly attend the USAFA. Our son will attend a very prestigious private college on a full academic scholarship. We dedicated the college money we had saved for them to a merit based scholarship so that the most worthy, not the most needy or the most ethnic individual may benefit. We think the government should operate the same way.
hey chill out you dont have to give it back. it is not a loan to be paid back.
STOP!!!
This is an information blog – not a gripe platform…
Go back and read the following post about 10 posts back:
SEE:
Rea responds: Posted:
February 11th, 2008 at 11:22 pm
I HAVE THE ANSWERS FOR YOU!! (SHE REALLY DOES!)
Do I qualify for a rebate and how much can I expect?
The whole kit-and-caboodle is posted on CNN Money site, and Rea copied the article word for word for all of your questions.
Let me be clear. It is a loan from China ? to us that our kids and their kids will all have to pay back with interest with the rest of our debt.
But anyway now back to the the rebates questions. People are getting confused as to the rules here. Simply put, the rebate/stimulus/wealth redistibution/etc. is as follows. It is temporaryly based on your AGI for 2007. This is so it can be sent as early as possible. When you file your 2008 taxes in 09, big brother will recalculate your rebate again based on your 08 AGI. Sorry you are not getting another rebate. But, If your 08 AGI recalculation shows that you should get a larger rebate than the one your got with your 07 AGI, then your get another check for the difference. If your 08 AGI recalculation shows a smaller amt you do NOT have to repay the difference.
EX Say you get 1200 rebate this summer and in 08 you have a child, you would get 300 more in 08. YEAH
ex Say you get 1200 rebate this summer but make 200,000 in 08, you would not have to repay the 1200 even though your 08 income recalulation puts you into the no rebate land.
Sorry if it is still confusing , hey what isnt when it comes to the govt.
Simply put ,the rebate is on your 08 taxes but based on your 07 income and recalculated on your 08 income. If your deserve more on recalulation your get more if you deserve less , dont worry they wont ask for it back.
Why would I want a loan on my own refund??? I will send my rebate back!!! I’ll get my refund when it is due. How do you expect people on disability and social security to pay the rebate back when they are on a very limited income and have to survive from month to month on their limited money. If they had extra money each month to spend I’m sure they would. What is the government going to do take their disability checks and social security checks so they can’t possibly survive for 2 months!!!!! How are they suppose to buy groceries and pay rent when you jerk the rug out from under them????? They have to survive too. Another government scam to just make the poorer even poorer!!!! What is wrong with our government??? All they do is SCREW US!!!!!
Brenda, it is not a LOAN on your own refund. They dropped the 10% tax bracket for 2008. In anticipation of that, they are prebating that extra money you would receive next year early.
It should not affect your normal refund at all.
From what I am reading, a lot of us are going to have a big suprise next year when we file and find out our 2008 tax return is 600.00 less than we normally get back.
Correct me if I am wrong but it definately appears this is just an ADVANCE on what we would have gotten next year.
Stimulus HA its just a loan
It is not an advance on what you would normally receive. It is extra above what you would have received next year.
The tax brackets for 2008 were supposed to start at 10% for the first $8K or so of taxable income.
Instead, now your first $6K of taxable income will be completely tax free at 0%, instead of 10%. That’s how they got the $600 for an individual ($6000 at the original tax of 10% = $600).
They are just prebating this money to you ahead of time instead of making you wait until you file your 2008 taxes next year to see the results. I don’t quite understand why it is so difficult for some of you to comprehend this.
If it was a loan or advance against your taxes that you would pay in 2008, they would not need to be borrowing all this money from China.
I think there is a typo in determine what these couple will receive “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. ”
According to your detail description, couples over 150,000 treshold income ‘s rebate get a deduction of 5% for every $1,000.00 which would mean couples that make $160,000 with 2 children who would otherwise get the full $1,800.00 if they made under $150,000.00 would get $1,300.00 = 1,800.00- (160,000-150,000)*.05. the rebate would go down by 5 percent of the additional income over $150,000.00 ending at $174,000. A $1,300.00 rebate not A $900.00 rebate.
Did you make a typo or did I misunderstand your detail description of the stimulus package. Please respond.
Thanks
PENNY ASKS YOU DON’T SAY HOW HEAD OF HOUSEHOLD STATUS WILL BE TREATED WILL WE BE CAPPED ON INCOME AS SINGLES , MARRIEDS OR A CLASS ALL OUR OWN?
I think it would be much easier to switch to the Fair Tax plan!! No more IRS and we will only have to pay an additional 1% more on items we purchase. Social Security would be safe and our country would flourish. Illegal Aliens, if they are still here, can’t get out of paying the tax. To find out more read the new book Fair Tax the Truth Answering the Critics or go to fairtax.org. Vote for Huckabee as well!!
The head of household is treated as a single individual eligible for one rebate plus rebates for any children. The minimum rebate for an individual with at least $3,000 in earned income is $300, but it can be as high as $600, depending upon how much that person owes in federal income tax.
To: Huckfan
So you want a president that believes the earth was created in 7 days. If i was scared of Romney I am terrified by Huckabee. Although he does know his bass guitar. For whatever that is worth.
If I am married and filing jointly, with two children, making less than $150,000/year, but my wife has no earned income, what will my “rebate” be? Do I get the $600 for her?
If I am married and filing jointly, with two children, making less than $150,000/year, but my wife has no earned income, what will my “rebate” be? Do I get the $600 for her?
$1800. Yes.
To Terry G
Most Presidents we have had believed the earth was created in 7 days. How many haven’t?? If Barrack Hussein Obama wins they we won’t and that scares me to death. LOL Religion aside, Huckabee has some great ideas and Fair Tax is one of the best.
PATHETIC stimulus plan.
Ok so say you are a married couple but you filed seperately. Would that couple still get $1,200 plus the $300 per child?
Why should you get more money because you squeeze out a few kids? I don’t care if they are expensive, they were your choice. I’m sick of paying for other peoples bratty kids. This whole giveaway is a disgrace. What a country of babies we are becoming.
Katheryn & Christina,
Ladies, being old, disabled, or a single mother in no way entitles you to a portion of my paycheck. I’m married with four kids, live in an average house (one that I can afford), my wife stay home with the kids and takes college classes, yet I won’t get one penny from this joke of a “stimulus” package, because my wife and I are labeled as “rich” since we make a decent living.
Charity is a good thing. I’ve given thousands of dollars to my church, the local homeless shelter, and a local agency that provides food, counseling, diapers, etc. to poor mothers. I believe in giving to others who are less fortunate than me, however, I am completely against having money forcefully taxed by the government and given to someone else simply because they’re poor, or “entitled”…this is stealing.
Being disabled or being a single mother involves challenges that I’m sure I could never really relate to, but it doesn’t give you people the right to act as if you “deserve” a portion of my paycheck. You are made weaker, as individuals, with every government check you cash; when you take their money (gov’t), you become dependent on them to survive. It’s almost like a drug. If I were you people, I would refuse the welfare check Uncle Sam is going to mail you and start taking charge of my life.
Nobody owes you anything. Stop being losers, and make the choice to become winners…you can do it…one step at a time.
To Terry G.
Unfortunately you do not understand how capital markets work. Americans investing (for their families) in corporate America are the ones who will feel your proposed plan to increase taxes to only corporations. Do you honestly believe that the CEO of a large multi national corporation will be the only one affected by your plan. Its not that simple. Corporations pass their costs down to the end users: shareholders and you and I, the consumers.
All of you should read a book on macro economic poliocy or atleast personal finance management.
If this is a rebate that will effect us in 2008….can we save it for next year and reject the check so we can have money coming to us in 2008 like always?
In the above comments – it is 2009 that it will effect not 2008 – oops
If this is a rebate that will effect us in 2009….can we save it for next year and reject the check so we can have money coming to us in 2008 like always?