To get our rebate check from the Economic Stimulus Act of 2008 we have to file our taxes for 2007. So filing taxes has become a ticket to an extra $1200 or more in our pockets. Looks like paying taxes to Uncle Sam this year is really worth it! Here we present some FAQs for the rebate check via this year's Economic Stimulus Act.
Will I qualify for a Rebate Check?
Single tax filers with Adjusted Gross Income (AGI) less than $75,000 and couples filing jointly with AGIs less that $150,000 will qualify for full rebates.
How Much Will I Get?
- Qualifying single tax filers with AGI less than $75,000 will get rebates of up to $600.
- Qualifying couples with AGI less than $150,000 will get rebates of up to $1,200, plus $300 per dependent child, with no maximum on the number of eligible children.
- Persons who owe no income taxes, but earned at least $3,000 in wages, Social Security benefits or veterans disability benefits will get rebate checks of $300 for individuals and $600 for couples.
- We must file a a tax return, either a form 1040, 1040A or 1040-EZ federal tax return for tax year 2007.
- Retirees or folks who do not normally file tax returns will have to file a 2007 tax return in order to get a rebate check.
- Beginning May 2, the IRS will begin mailing the rebate checks. It is estimated that it will take about 10 weeks for all the checks to be mailed.
- If we fail to file our taxes by April 15, 2008 and request a filing extension our rebate checks might be delayed till December.
We will still get a check, but it will be reduced by 5 percent of the amount we earned above the AGI income caps of $75,000 for single filers and $150,000 for couples. At some income point above the AGI income caps, the rebate checks will disappear completely!
- For singles, the phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. A single tax payer earning above $87k gets nothing.
- For couples, the phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. A couple filing taxes jointly and earning above $174k gets nothing.
We will not receive a stimulus payment in 2008, if any of the following applies:
- We do not have a valid Social Security Number.
- We are a nonresident alien.
- Our net income tax liability is zero and our qualifying income is less than $3,000. To determine our qualifying income, we've got to add together our wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.
- We are exempt from this rebate if we can be claimed as a dependent on someone else’s return. For example, a child or student who can be claimed on a parent’s return will not receive an economic stimulus check.