President Bush has signed the economic stimulus package into law. This plan provides tax breaks to businesses that invest in capital equipment, temporarily allows larger mortgages through the Federal Housing Administration (and related entities), and provides a personal income tax cut for 2008. Instead of passing this on when we file taxes next year, the IRS will mail a tax rebate check to most Americans this summer. This is an advance on the reduced taxes for 2008.
How much will you get back? Flexo at Consumerism Commentary recently shared a handy little tax rebate calculator, which I’ve reproduced below:
The tax rebate will have no effect on your 2007 tax return, which you’re probably working on right now. These changes are for the current year. According to the IRS web site:
- The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year.
- The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments.
- Taxpayers should be aware that there are identity theft scams involving the proposed advance payment checks (known informally as rebates to many Americans).
Checks will be sent out beginning in May. For more information, read facts about the 2008 stimulus payments from the IRS. Finally, Kathleen Pender at the San Francisco Chronicle was the best source I found on how tax rebates work in the economic stimulus package.
As always, the information in this post is correct to the best of my knowledge. If you spot an error, please let me know so that I can correct this article.
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Why does the government treat citizens so unequally? I’m not getting a rebate, even though I am your prime spending demographic. I make a nice living, yes, but it’s not THAT nice, and I pay a bunch of taxes every year. And yet, I’m punished for my success, despite the fact that friggin’ Hurricane Katrina knocked me on my rear financially, and every cent I earn is going toward my recovery, which I am far from achieving. So, enjoy your rebates. I’m going to grump in the corner and resent the government’s unfair populist policies. GRRRRRRRR!!!!! (Please know, that I don’t begrudge anyone getting the rebate, but I think I should get one too, and there should be absolutely no income restriction. It’s so un-equal, un-American, and unfair). Definite sour grapes over here.
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I am a single mom with one 17 year old and I filed Head of Household. I grossed $25,600 in 2007. It looked like I was suppose to get $900, but it was deposited into my checking account yesterday, and it was $600. Other parents in my same situation are saying the same thing. Anyone know why we got $300 less than expected?
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[...] Of course, knowing when you will receive your rebate is only half the equation. You probably also want to know how much money to expect. Well, fortunately, there is a nifty little calculator you can use to determine the exact amount of your rebate. Here’s how to Calculate Your Economic Stimulus Tax Rebate. [...]
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Hello, can anyone give some advise….My husband and I filed jointly. But I always have to file injured spouse. Because of back childsupport… So We claimed 3 children 2 are ours and 1 is his…does this mean they will take a portion for his back childsupport,(he pays faithfully everyweek from his paycheck for years and years now) (like they do for our taxes) and I will get my portion or is that not an issue since its a rebate check….I think that is they were doing such wonderful things by giving us this rebate check to help with bills oil food etc…they shouldnt take it weither someone owes for anything. But if someone could give me some advise that would be great..
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If i was claimed but still made over $3,000 and filed taxes do i still get the check?
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I am using my check to rent a car and visit my ailing Grandparents in Ohio. I am a single mom with no debt and three months emergency money in the bank. I have been wanting to visit my grandparents for five years, but could not afford a vacation. So I am happy and I guess I am stimulating the economy by renting a car (my old clunker will not make the trip) and buying gas.
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My husband has 50/50 custody of his child with his ex-wife. They take turns claiming their daughter on their taxes each year. In 2007, the ex-wife claimed the daughter. Does that mean she will get the $300? Shouldn’t it be split 50/50?
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The calculator said that I was suppose to get back 1500 and I only got back 900, I have checked with other fellow workers that I work with that make about the same thing that I do with 1 child, what happened to my check. I haven’t cashed it yet, what should I do?
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I heard that there will be another check in november of 08 anyone else heard this?
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How much will get back made $31,000 and claim one depent of the age 17 years, how much will i be getting back?
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i have had a baby since i filed my taxes do i get an extra 300 with my stimulus? and is there someone i need to update?
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I’ve been interested in taxations for lengthier then I care to acknowledge, both on the individual side (all my employed life history!!) and from a legal stand since passing the bar and pursuing tax law. I’ve provided a lot of advice and rectified a lot of wrongs, and I must say that what you’ve put up makes impeccable sense. Please uphold the good work – the more individuals know the better they’ll be armed to comprehend with the tax man, and that’s what it’s all about.
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