Tax Rebates for 2008: Do you Qualify?

Tax Rebates approved by lawmakers to spark the slowing economy and  this  leads to questions concerning how the program will actually work. Most taxpayer’s concern is the amount of rebate they will receive and when to expect its arrival. The rebate itself is not exactly free money and some clarification is needed. The rebates checks will begin mailing in May and estimated to be completed by early July. To qualify for the one time rebate your adjusted gross income must not be greater than $75000 if you are single tax filer and not more than $150,000 if you file a joint tax return. In addition, parents will receive an additional $300.00 rebate per child under age 17 claimed on their 2007 tax return with no cap as to the number of eligible children. To qualify you must file a 2007 federal tax return preferable before the April deadline. If you file an extension you can still receive the rebate, if you qualify, but the time frame the rebate is issued to you will be later in the year. If your income is above the cap set,  you can still get a rebate but any amount above respective cap will be reduced by amount above stated cap times 5% of total amount above cap.
Example:  a single person has income of $85000. The $10,000 above cap will be reduced by 5% in this case (10000 x.05 = $500.00). $600 -$500 = $100 rebate
Questions arise, such as, ” do I have to repay the received rebate. The answer to this is No. The rebate you receive is actually an advance on the credit you’ll receive when you file your 2008 tax return. Basely, if you are eligible, you can receive an additional rebate when you file 2008 tax return as the rebates are based on your 2007 return for the initial rebate. Example:  If you have an addition to your family or claim an additional dependant in 2008 an additional rebate will be factored in at that time, qualifications met.
If you receive more than you should based on your 2007 return,  when you file your tax return for 2008 you will not have to repay what you have previously received. Tax filers who do not owe taxes but have at least $3000 in income including Social Security and disability payments,  including Veterans benefits will receive $300 per person or $600 per couple.
An estimated 120 million people get the rebate. I see more people claiming their dependants this year, anticipating the rebate they will receive. The rebate checks will be issued in early May and require approximately 10 weeks to complete mailing in early July. If you have any questions fell free to contact me for clarification. Just use my quest book at www.taxmart.us
“An Informed TaxPayer saves Money”

Larrie Perkins
TaxMart Inc   
 

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