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This article is for tax year 2008. For 2009 and beyond, see our roundup of 8 (or more) Ways to Benefit from the American Recovery and Reinvestment Act of 2009 (AKA Stimulus Plan).
Updated March 18, 2008 with an estimated schedule of payments.
President Bush has signed into law a $165 billion economic stimulus package providing rebate checks to taxpayers. You might receive a check for $300, $600, $1,200, or even more depending on your conditions.
Originally, PBS Newshour provided a calculator to help taxpayers to determine the amount of the rebate, but that calculator has been proven to be faulty. With the help of Consumerism Commentary reader cdg, I’m now including a new calculator, revised several times over the past few days to increase clarity and accuracy. This calculator properly takes into account the information from the bill passed by Congress and signed into law by the President (H.R.5140) and has been verified by CPAs and tax accountants. However, any information presented should not be considered tax advice.
The validity of the result depends on the accuracy of the information you enter. Before entering the data or asking any questions, please scroll the calculator down to read the definitions and read all the comments at the bottom of this post.
Since this “rebate” is an advance for a new credit which will be included on the 2008 1040 income tax form, it will not affect your 2007 taxes. In April 2008 (this year for 2007’s tax settlement), you will receive what you are owed or you will have to pay what you owe as if the rebate never occurred.
This summer you will receive the rebate for the 2008 credit as calculated above.
In April 2009 or thereabouts, when you file your taxes for 2008, the IRS will run the calculation for the stimulus rebate credit again. If the results show that you would have received more (due to an additional child, for instance), you will be sent the difference. If your results show that you would have received a smaller rebate, then you get to keep the difference. This is an additional credit. You do not have to pay back to the IRS what you will receive this summer. Receiving this advance will not reduce next year’s refund nor will you owe more federal tax.
March 18 Update: The IRS has released a schedule estimating when you will receive your rebate.
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{ 336 comments… read them below or add one }
Individuals that earned $86,999 in Adjusted Gross Income would get back $240. But darn those folks that made $87,000 while paid the majority of all the income taxes. They get nothing!
“Rebate”?! HA! A rebate is defined as a return from an original payment.
If you didn’t owe taxes and you earned as little as $3,001 you’ll get a $300 handout! Alright! Free money that you didn’t earn!
This is wealth distribution and I don’t care for it. People that didn’t even pay taxes are getting a handout.
Sheesh…if you’re filing jointly and earned $173,999 combined you get to PAY the government $240 MORE, according to this calculator.
The idea is to get money in the hands of people who will stimulate the economy… it’s probably wrong to call it “tax rebate” thanks to the newer addition that those who didn’t earn enough to owe taxes should still receive money.
The calculation for the $173,999 earning couple is obviously incorrect. No one is paying MORE taxes due to this plan.
Well, by the governments logic, they should give it all back and lead us into a capitalist revival of which the world has never seen.
This is an interesting calculator. I recently wrote about why I don’t like the tax rebate — and that’s based on how it may be distributed. According to the calculator above, I will receive $1200 [if the bill goes through as is], which is the exact amount someone with an AGI of $3001 will receive. I wish I could receive 30% of my income as a rebate…
This is not a rebate.
I couldn’t agree more with shana (I read your post too). I make a pretty good living somewhat above 6 figures depending on my bonus. Nonetheless my salary living in the heart of Manhattan does not stretch very far. I wouldn’t mind seeing something linked to cost of living at least – someone making 74,999 in the middle of the country has far more actual cash available than I do here since the cost of living is about 2x. It’s yet another benefit I pay into with my taxes that I’ll never see a dime of (added to SS, and many other tax rebates that get phased out at my income level).
I think it is funny that a lot of the same people who understand that we shouldn’t be giving out the “rebate” in the first place then get jealous that they’re not getting one when others are.
I’m not going to be getting a check, but I don’t think the government should be writing checks when we’re already in the biggest national debt in history…hence I don’t complain. This “stimulus package” is a bad idea all around, so the cheaper it ends up being in the long run the better.
This is exactly what is wrong with the world, who cares what other people are getting back?
Any discussion should center on the economic utility of the plan. Will it work to add money into the marketplace? Doubtful – I know I will be reducing my debt with my check.
Well reducing debt with the package can help your finances some, and for people like me who would rather spend some money monthly on items instead of just credit bills, it certainly could help the economy. Doesn’t mean we all have to spend the $300 instantly!
those don’t pay taxes get 300 while those paid a lot of taxes got nothing? Do these politicians have brains? Don’t call it a rebate for crying out loud.
Oh, it gets worse. We didn’t pay anything in taxes this year but by this calculator we’ll be getting $1200 back (family of 4 making 24,000).
Don’t complain to me, I didn’t ask for this money. They think it’ll stimulate the economy. I’ll be doing my part, I won’t be paying down bills. I’ll spend every last penny of it while on vacation in Branson (hey, at least it’s not Paris or something, right?)
From what I’ve read elsewhere, this calculator seems to give the wrong answer if you owed between $1 and $1199 in federal income tax.
My understanding is that if your are a married couple filing jointly with no children with more than $3000 AGI:
* If you owe $1 – $600 in federal income tax, you get $600.
* If you owe $601 – $1199, you get that amount.
* If you owe > =$1200, you get $1200.
Have I misunderstood something?
Why does it say “Do yo OWE taxes for 2007?” Wouldn’t it make sense for it to say, “Did you pay taxes for 2007?” When I put in NO it drops me down to $600, but when I put YES it takes me back to $1200. My husband and I don’t owe taxes but we did pay taxes. I don’t understand. You get more money back if you OWE the IRS?
Brandy: It’s not referring to whether after calculating your 1040 form you’ll be receiving a refund or owe additional tax… If you paid tax in 2007 on your 2007 earnings then you owe taxes for 2007 (unless you’re getting the full amount refunded to you).
If I am in a payment plan with the IRS for 2006 Taxes will I get any rebate, according to the numbers we should be getting $1800
I don’t understand this much at all. I am married and file jointly. We will be getting back approx. $900 for 2007 rabate. How does this proposed stimulus tax effect me? Will I owe or receive any of it? Our combined income was about $76,000
I dont understand this at all either. My husband and I made 65k this year. We owed in federal 469.00 and state 303.00 so we didnt get a “refund” but we did pay taxes. We have three children. So Will I actually get the proplsed stimulus package or since we owed more taxes and paid the goverment do we now get disqualified? So confused!
that is your choice to live where you do. what does that have to do with the person that lives in Nebraska and makes as much as you. Sounds like they are just more wise, or don’t really care about having the option to see broadway plays, and have amazing dinners. You shouldn’t get more refund. And i’m speaking from the stand point of someone that lives in San Fran, i iknow the high cost of living.
Thanks for the calculator! I think this “rebate” will be the topic of hot discussions for the next few months!
Hello,
I have been led to believe that if I am on Social Security but pay taxes, I would not receive a tax rebate.
Both my wife and I are fully retired receiving a govt. pension (wife) and retired military pay, social security and state retirement (spouse)with an adjusted income of about $80,000. Please calculate.
I don’t think this calculator works right. If you put in any amount more than $3000 (singly) and less than $75,000, it gives you the full amount ($600). I read the bill for myself and it says you will only get back as much as you put in, up to $600 singly or $1200 jointly. It’s actually written as a credit towards your 2008 taxes, more like a pre-bate than a rebate. How do they know how much you will make in 2008? I guess they will use 2007 as an estimate, and then calculate it correctly at tax time in 2009. Some people might make more in 2008 than in 2007, so they wouldn’t get as much as they should, but the bill says it won’t pay after Dec. 31, 2008. So they can’t give you more money at tax time in 2009 if they should have. So, what will they do? Probably give everyone the full amount and then charge you for what they overpaid if you didn’t make enough to qualify for the whole thing! I know most people don’t do their own taxes, but some of us do and I’d like to really know what to expect. Technically, the calculator works right, because they will probably give us all checks for the full amount, and then ask those of us who don’t owe that much to give some back at tax time. To hell with the lower class!
After all of my education credits, hybrid vehical credit and such I ended up not having to pay anything in, but I did have a tax to reduce before the credits. So will I get 600 or 300?
IF YOU RECEIVE A PENSION OVER 15OOO DOLLARS AND PAY TAXES ON IT BUT GET IT ALL BACK AND FILED JOINTLY. WHAT KIND OF A REBATE DO YOU RECEIVE. MY WIFE AND I ALSO RECEIVE SOCIAL SEACURITY.
HAVE A NICE DAY.
HOWARD
People are being confused by the term “Owe” taxes. If you had an income you owe taxes. It means the same as paying taxes, not if you have to pay additional when filing or getting a refund. When you pay or get a refund when you file it is because you either under or over paid your taxes. I panicked at first thinking I wouldn’t get a check because I had a refund then read through things a bit more and it became clearer.
Thanks for that clarification, Scott. You’re exactly right. Except for those on the very, very lown end of the income scale, if you *earned money* in 2007, then you *owe taxes.* It has nothing to do with whether the IRS sends you a check after filing your taxes or if you have to pay them… that’s just to catch-up with the tax you paid throughout 2007 in each pay check.
DOES THIS MEAN THAT MY WIFE AND I WILL RECEIVE 300 DOLLARS A PIECE OR 600 HUNDRED DOLLARS A PEICE
HOWARD
Will you get this money if you owe taxes to the IRS from a previous year or do they keep it then? Anyone know?
Folks, the adjusted gross income number the calculator is referring to, is the bottom number on page 1 of the Fm 1040. What this is comprised of, is all of your taxable income (including some portion of your social security, depending on your age and your other income) less certain deductions that are allowed from that total (like alimony paid, educator expenses, IRA deduction and others). This is before any standard or itemized deductions (like mortgage interest, etc.) and personal exemptions are deducted, and before any calculations are made concerning whether you will get a refund or have to pay taxes to the Feds. I am a retired accountant who had a tax business for 15 years, and many people get confused about what all these terms mean. Grab a copy of your last year’s taxes, and look it over. It basically adds up income, allows some deductions, allows you some living expenses (standard or itemized deduction and personal exemptions), gets you to a net taxable income number and calculates your tax based on that number. Then there are some credits against that number, more taxes added in if you are doing some oddball (for most of us) stuff, some more credits and then you get to a final tax number. THEN the form looks at what you have paid in (and some credits will come in to help you out, like earned income credit if you qualify, and if you have paid in more than what is owed, you will get some money back. If not, you pay in on April 15th. Just grab your tax form from last year and give it a lookover – ignore all the things you don’t know about – just look at what the form is doing – and I think the tax process will be a little clearer for you. Hope this helps!
I find it amazing.. I’m a single parent of a 2 year old. My AGI is roughly 88K. I receive NO child support from my ex (he’s at the poverty level in my state due to child support for a child of a previous marriage).
HE will get back $600, and his income was only $23K last year so obviously he PAID a whole lot less taxes.
I will be lucky if I get $340 back, INCLUDING the rebate for the child.
I am actually considering having HIM take the child as a deduction this year and paying me the $300 when he gets it.
It’s insane. I pay more taxes, do more support of the child, but yet I’m not entitled to a fraction of the rebate that the non-supporting parent would get.
I have a good mind to send my State Senator (Ms. Hillary) a letter.
This stimulus nonsense demonstrates again why we should replace the payroll tax and income tax with a tax on non real property transaction public, business, and government. Exclude services performed in the US, Rx drugs, Medical devices, used finished goods, financial instruments and groceries for home consumption.
Tax everything else every time anything changes hands or is imported.
It’s not regressive because most of the basics of life are untaxed for everyone.
When the economy is overheating raise the tax.
When a stimulus is needed cut the tax.
The effect and response would be immediate…. it would be fair……..and it would make labor in the US more competitive because there would be no payroll tax to be paid by US manufacturers
It appears that many people don’t understand the point of these “rebates.� They hear money and think they everyone should get some or it’s not fair. The point is to get it to people who are more likely to spend it as discretionary income who may not be doing so now. If you are over the income limits the assumption is you already have discretionary income and don’t need incentive to spend. If you don’t earn enough to be taxed there is no way you are going to spend this money on goods the boost the economy. Those who are in between get the checks in hopes that it will be spent instead of saved or pay off bills…thus stimulating the economy and in theory improving the overall financial health of the country. It’s just another tool to adjust the economy just like the Federal Reserve does in adjusting interest rates (raise rates people save, lower rates people spend) and the Treasury does but making more money or removing it from circulation to affect the value of the dollar.
How does this effect next years tax returns?
I am also very interested to know if a person owes taxes from previous years will they still get the rebate check?
Just because someone is at a higher income level doesn’t mean they have higher discretionary income. In some cases (like mine), what I make, with a child, is JUST enough to get by (daycare easily costs, for an infant, upwards of $15K a year), any decent apartment is minimum $1,500 a month.
I spend, I actually LIKE to spend, and I’d gladly pour $900 into the economy by buying my daughter clothes or gifts that I otherwise couldn’t afford to buy.
But, if you read the surveys, MOST people are planning to pay down debt or save their rebates, so I don’t think the darn thing is going to do much good.
I actually DID send a letter via Hillary Clinton’s website (she is one of my State Senators).
BTW.. does anyone know? How does the IRS know your marital status? For example, if my divorce was final on 12/31, how do they know that???
My date isn’t that close, but pretty near, so I was married for 350 days out of the year, single for 15 but I have to file single.. which also causes me/us to lose literally thousands of dollars in deductions.
On the calculator, i’m not sure how to define my ‘paid tax’ situation.
I am married with kids and a house and mortgage. Wife stays home with the kids, so she has no income.
I make 42K, but paid just $300 in fed taxes, which i’ll get all of it back. In addition, i get some more money back for the Additional Child tax.
So, am i categorized as paying taxes for 2007?
If you receive social security disability benefits and are not required to pay taxes, do you receive a rebate at all?
My mom lives on about $600 per month which comes from a VA pension, Social Secuity and PERA. She lives in a building where her rent is based on income. If she takes this rebate all it will do is make her rent go up and/or reduce her VA pension, isn’t that right? I don’t see the value of this at all!
Ok I am real confused! My husband is in the Military and has been deployed since Jan 07. We had no taxable income last year but our income was 49,500. We did recieve child tax credits for our dependant children this tax season. So are we going to qualify for this “rebate” ?
Ok. . . .so if I underpaid my taxes and have get no return and owe the IRS because I didn’t have enough withheld will I not see the money? I would appreciate any feedback, thank you.
This calculator, “courtesy of PBS Newshour”, is a prime example of why NOBODY should rely on ANYTHING they see or hear on PBS.
The “economic stimulus rebate”, as proposed by President Bush, as passed by the House, as modified by the Senate, and in its final form, is designed to be a tax rebate, eliminating the 10% bracket for most taxpayers. As such, it is designed to be a return of the taxes you have paid.
The “rebate� amount is the lesser of your net income tax liability or $300 (for single taxpayers) or $1200 (for married persons filing jointly) plus $300 per dependent.
If the taxpayer has earned income or social security benefits in excess of $3000, they will receive a minimum rebate of $300 (for single persons) or $600 (for married persons). If someone qualifies for either rebate, they will also receive $300 for each of the children claimed as dependents on their returns.
In the original house bill the criteria for qualifying for the minimum rebate was having an adjusted gross income (AGI) of $3000. This was replaced in the final version by $3000 of “earned income” or social security benefits, so as to share the “rebate” with those who don’t pay any taxes. However, the size of the rebate is a function of tax liability, not AGI!
PBS’ calculator uses AGI rather than taxable income, to determine the size of the rebate. This was/is incorrect for all versions of the bill.
If you need a calculator to perform the simple arithmetic to determine the size of your rebate, follow these steps:
1) Did you (and your spouse if you file jointly) make more than $3000 in earned income (wages, salaries, etc. but not including investment income) and/or social security (not including SSI) benefits? If yes, then you qualify for at least the minimum rebate.
2) What is your (anticipated) tax liability for 2007? See line 44 (Form 1040) or line 8 (Form 1040A) or whatever line is labeled “Tax” on Form 1040EZ.
3) For single persons (including head-of-household, and married filing separately): If your tax liability for 2007 is less than $600, your rebate amount is equal to your tax liability for 2007. If your tax liability for 2007 is not less than $600, your rebate amount is $600. If your tax liability for 2007 is less than $300, and you answered “yes” in step 1, your rebate amount will be $300.
4) For married persons filing jointly: If your tax liability for 2007 is less than $1200, your rebate amount is equal to your tax liability for 2007. If your tax liability for 2007 is not less than $1200, your rebate amount is $1200. If your tax liability for 2007 is less than $600, and you answered “yes” in step 1, your rebate amount will be $600.
5) If you qualify for a rebate, add $300 for each dependent.
It’s far easier to calculate than it is too explain, but PBS is too busy promoting their liberal agenda to provide an accurate calculator.
As far as being an “economic stimulus”, the rebate is too little, too late, and too inflationary. It would make far more sense to provide a permanent tax cut. That would stimulate the economy, and spread the wealth across the board. But that flies in the face of liberal mantras, no matter how many times it has been proven true, so the “Democratic” Congress won’t even consider it.
I was wondering if I am planning on making installment payments for additional tax owed for 2007, will I still receive the stimulus rebate check?
In reply to comment #40 by Nancy:
Q: I was wondering if I am planning on making installment payments for additional tax owed for 2007, will I still receive the stimulus rebate check?
A: The rebate check will be based on the tax shown on line 44 of your 1040 (as well as earned income, social security income and adjusted gross income, for purposes of computing the minimum and maximum due). It doesn’t matter whether you have a refund coming, or owe taxes at the end of the year; and it doesn’t matter whether you pay the taxes you owe with your income tax return or with an installment agreement reached with the IRS.
However, the IRS can “offset” ANY tax refund to pay amounts owed to federal or state government agencies (including, of course, the IRS). Whether or not they will do this with tax rebates is anyone’s guess. The bill passed by Congress and signed into law by President Bush does not cover this situation, thus leaving it up to the IRS and the courts to decide.
In my earlier post, I neglected to mention that the rebate is not available for “higher income” tax payers. So, if you make more than $75,000 ($150,000 for married filing jointly), you are out of luck. The liberals don’t think you are entitled to a rebate of any of the extortionate taxes you have paid to finance their socialist programs.
cdg: No one is “entitled” to a rebate, regardless of income level. The idea is to get the funds into the hands of the people who would most likely stimulate the economy (or give the appearance of doing so), not because they “deserve” some money back as a reward of some sort.
I agree that the whole maneuver is mostly for show and the economy will likely improve later on this year regardless of the rebate.
Sending money to the masses is mostly a political move… with an eye towards boosting approval ratings rather than the economy (though the two are often correlated when “sentiment” is the first measure of the economy).
Flexo: I disagree. Everyone is entitled to a rebate of all the taxes they have paid, as we have received nothing of value for our (forced) investment. But I don’t expect those whose power base is supported by the tax system to agree.
I understand the (flawed) concept of stimulating the economy by putting additional money in the hands of those who are more likely to spend it than to invest it. But, if the economy is in such dire straits, people are more likely to use the money to pay their mortgages, rents, utilities, and other bills, than to go on a shopping spree. It’s insulting to everyone that the Administration and Congress think we will all behave as though we were ######-rich.
However, the sole reason there is a cutoff in the “rebate” based on income level is the warped liberal mantra that “the rich” (however that is currently and conveniently defined) do not “deserve” to benefit from any tax cuts.
Left alone, the economy might improve later this year. But the more the government tries to solve the problems (that they create), the worse the problems will be.
So – where is a calculator that takes VA disability/SSI into account?? I am on VA disability, my husband works fulltime, our joint filing is for less than 50K AGI, no children at home … would we see the 1200 for a couple, or do we see 1500 with the addition of the VA disability “rebate”?? no one can seem to explain that to me …
Stephanie: To my knowledge, there is no separate “VA disability/SSI rebate”. The Senate added a provision to the “rebate” bill to give a minimum of $300 to people with at least $3000 in social security retirement income and/or earned income, regardless of whether or not they pay taxes. [SSI benefits are not social security benefits for purposes of this law.] Those covered by this provision would not otherwise receive any “rebate” (since they had not paid any taxes to be rebated).
As I stated above, the PBS calculator does not provide the correct result for anyone, as it does not request the data necessary to do so. A better rebate calculator can now be found at http://www.yourmoneypage.com/family/rebate2008a.php. However, it doesn’t take into consideration the phase-out of the rebate for those with “higher incomes”. So it won’t work if you have an AGI greater than 75,000 (single) or $150,000 (married filing jointly).
Since _your_ AGI is less than $150,000, you and your husband (jointly) should receive a “rebate” of the lesser of the income tax liability shown on line 44 of your 2007 Form 1040, or $1200. If that is less than $600, but you have (combined) earned income and/or social security benefits in excess of $3000, you should receive a “minimum rebate” of $600.
If “no one can seem to explain that to” you, it is because you have been asking the wrong people. The news media has completely botched their coverage of this, as they do with all tax legislation, and focused on who it supposedly benefits, and who it supposedly leaves out, and how unfair it is to this or that group, while favoring this or that group. They are too busy with their predictable propaganda to find out what the legislation actually says.
An accurate summary as well as the entire text of the House Bill can be found here: http://thomas.loc.gov/cgi-bin/bdquery/z?d110:H.R.5140:
It’s too bad PBS didn’t bother to read it before they created a useless calculator that has been copied all over the internet
I’ve created a more accurate calculator, and posted it at: http://www.chateaumezcal.com/2008taxrebate.html
my earned income was $3309…AGI 2559 after all the deductions etc…i got a refund of 434…(filed single) no children….will i get the $300 or what????? confused!!!
To #47 (rk):
If your 2007 earned income was $3309, and your AGI was $2559, and you filed single with no dependent children, you should get a minimum rebate of $300. If your tax liability (not your refund) was more than $300, you will get a rebate equal to the tax you paid, or $600, whichever is less.
cdg: Thanks for providing a more accurate calculator. I’ve incorporated it in the post above.
Re “Number of dependent children”, are you sure that is the number that is going to be used? I heard that it was going to be the same number that is used for the child tax credit, ie, age 16 and under.
To: Dogberry
You are correct (although that is what I meant by “number of dependent children”). The text will be changed to read “Number of qualifying children (Form 1040 line 6c)” later today.
To: Dogberry
You are correct (although that is what I meant by “number of dependent children”). The text will be changed to read “Number of qualifying children (from Form 1040 line 6c)” later today.
Another thing to consider when trying to “guesstimate” your rebate is the term child as I understand it a child for rebate purposes is the same as for child tax credit purposes, can not be over age 16 dec. 31,2008. I have two dependent children that I claim for dependent exemption but they will not qualify me for the extra $300 per child. Just something else to think about.
I don’t understand why the calculators say we are getting back 1200.00 dollars. I thought it was 1200.00 per married couple plus 300.00 per child. So, I have 2 children so I should be getting 1800.00. Why is this?
To Shannon:
For a married couple file jointly, the rebate amount is the LESSER of your net tax liability or $1200. If your net tax liability is less than $600, and you have more than $3000 of qualifying income, you get $600. Then, we add $300 for each qualifying child.
So, if (my) calculator is giving a result of $1200, the net tax liability (that you entered) was less than $600, and you got a rebate of $600 plus $300 per child.
What a great calculator! I think this is just what a lot people have been looking for.
I wanted to embed it in my blog, but there were some problems with the HTML file and formatting. I hope it is OK, but I slightly modified the code so it would display correctly.
Thanks for posting such a great tool.
So … am I reading this correctly? It sounds like it would REALLY behoove me to make sure I am not over withholding in 2008.
If I am due a refund next April, they will reduce it for this year’s stimulus package
If I owe money, or owe nothing, then I will get to keep this year’s stimulus package?
CDG – how will this rebate affect our true tax rebates in 2009? For instance this year my husband and I recieved $6200 back on our income taxes. Does that mean if we get $1800 this year because we have 2 kids that we will only get $4400 next years rebate?
To: #56 by Jon
Thank you for your kind words. Ironically, I was looking for a calculator on Monday, so I WOULDN’T have to read the entire tax bill. I couldn’t find an accurate one, so I ended up reading the bill AND all the code sections it cites by reference, AND then writing my own calculator. I hope everyone finds it useful.
>What problems did you find with the HTML file and/or formatting? I would prefer to fix such problems then have multiple versions of the calculator out there. That way, if I need to modify something, it can be done in one place.
To: #57 by Jenn
I don’t know what you mean by “our true tax rebates in 2009″. The Tax Stimulus REBATE will not affect your income tax REFUND for ANY year. [Nor, according to the text of the law, will it be considered "income" for those who receive low-income-based benefits.]
The difference between a tax rebate and a refund (theoretically) is that a rebate is a return of taxes that you owed and paid, whereas a refund is a return of taxes that you overpaid.
If you compute your taxes for 2007, and find that you overpaid, you get a refund. [If you underpaid, you have to send the IRS more money.]
The same for 2008 and every year.
But, regardless of whether or not you overpaid or underpaid, whether you received a rebate or sent the IRS a check, you get a rebate if you qualify. It doesn’t affect your taxes for this year or next.
cdg
The changes I made were to fix the embed link so it would actually work, and to move the top and bottom text into the table and to change the background color of those cells to white.
That way it looks the way it was intended even on blogs like mine with a dark background. you can see what I did here: http://www.jonbarclay.com/myblog/checks-from-uncle-sam/
Oh and one thing which I didn’t change but is broken is the link to Chateau Mezcal. It generates a 404 error now.
I hope I didn’t step on any toes by doing that, it really is a great tool.
thanks cdg!!
So if we owe money back to IRS because we didn’t have enough withheld we are still going to get this rebate?? I am so confused on all this, thanks to anyone who can help me. I appreciate it.
To #61 (Julie)
If you are eligible for the rebate, you should receive it whether you “owe money back to IRS because you didn’t have enough withheld”, whether you have a refund coming (because you had too much withheld), or whether you had just the right amount withheld (which would be a miracle).
The amount you owe the IRS (or the REFUND you have coming) does not affect the size of your REBATE.
The rebate is calculated based on your net tax liability (your computed tax bill plus AMT (if applicable) less certain credits), not the amount you paid or didn’t pay during the year.
Thanks cdg. Sorry about the terminollogy. But I think I understand this now. The REBATE we are going to get this year will not affect my REFUND next year. I was really concerned that is was just an advance on my REFUND for next year.
THANKS!
Thanks cdg VERY MUCH for your help! I keep hearing different things so I didn’t know what the truth was. I just assumed the IRS would automatically take it from me if I owe them money. So basically most people who work will get this rebate unless they earn more then 75,000 for single or 150,000 for married correct? I am so surprised, thought the IRS would for sure take that money that I owe them. Are you 100% sure on that?
To #63 (Jenn)
Your confusion is understandable. Congress (and the news media) have emphasized that this is (technically) an advance REBATE of (some of) your 2008 taxes (except for many people the rebate will be greater than the taxes they pay, and thus is a handout, not a rebate).
And, in fact, after you file your 2008 return, the IRS will re-calculate your rebate, and (possibly) send you another check. This would happen, for example, if you had an additional child in 2008, and thus qualified for another $300. However, the inverse is not true. If the re-calculation shows you be “entitled” to a smaller rebate, you will NOT be asked to return the “overpayment”.
Regardless, your REBATE will not affect your REFUND or your tax liability.
This is all assuming that Congress doesn’t change the tax laws again.
The “Red Queen” (in Lewis Carol’s “Alice in Wonderland”) said to Alice, “I could have done it in a much more complicated fashion”. She obviously had no experience with Congress (or HTML).
spend, spend, spend…
To: #64 (Julie)
>”I just assumed the IRS would automatically take it from me if I owe them money. So basically most people who work will get this rebate unless they earn more then 75,000 for single or 150,000 for married correct? I am so surprised, thought the IRS would for sure take that money that I owe them. Are you 100% sure on that?”
Do you mean that you have a balance due on this year’s income tax return, and are paying the balance due with the return? In that case, the IRS shouldn’t take your rebate from you.
However, if you owe money for previous years and are making installment payments and/or are considered “delinquent”, the IRS will most likely intercept your rebate, just as they would intercept a tax refund.
They may also “offset” your refund (and presumably your rebate) to pay various delinquencies to other federal and state agencies (for example, child support and student loans).
The original theory behind the tax rebate was to stimulate the economy by putting money into the hands of those who (theoretically) will go out and spend it right away. President Bush proposed to do this by returning some of the taxes that we had already paid. Congress decided to also give money to those who don’t pay taxes, and not give it to those who pay the most taxes. That’s why it is so complicated.
Even singles making more than $75,000, and married couples making more than $150,000 will receive a rebate. But the rebate amount is reduced by 5% of the amount exceeding the $75,000/150,000 threshold. So a single person with no dependents with an income of $86,500 would still receive a $25 rebate. The rebate amount wouldn’t become zero until he/she made $87,000. Of course, he/she will then have paid $15,000 in taxes — and received none of it back to “stimulate the economy”.
If the goal were truly to stimulate the economy, Congress would have done better to permanently reduce the tax rates for everyone, “rich” and “poor”. But they are not trying to accomplish anything but to “look good” in an election year. That is why they are more concerned about getting refunds to the masses, than to actually fix the economic problems they created.
To: #57 by KB
It doesn’t make one bit of difference if you are over-withheld or under-withheld in 2008. You will still get precisely the same rebate and precisely the same refund (or tax bill) as you would without the stimulus package.
Yes I am making installment payments for last year’s taxes so I will assume I am not getting the rebate and they will just intercept it and pay that. Thank you for all your help cdg!
My wife are in our 20’s and our income for 07 was $169,000 and we get a lousy $300???? I can’t imagine what it’s going to be like in 10 years.
It’s embarrassing to think only a few years ago I was a registered democrat (young, naive, college graduate)!
Can you say redistribution of wealth?
My earned income was $2663, but my AGI was 18881. I filed married with one child. My federal return was $4360. I was above with my AGI, but under with my earned income. Does this mean my and my husband will or won’t be getting a rebate? I filed a 1040a and the lines for the calculator don’t add up.
To: #72 by Samantha
I can’t compute your rebate from the information you provided. What do you mean “my federal return was $4360″? Do you mean your refund or your tax liability was $4360? The former is irrelevant, but you need the tax liability to compute your refund.
Based on the figures you provided, if your net tax liability was $0, you will not receive a rebate. If it was $1 or more, you will receive at least $900. If it was more than $900, you will receive somewhere between $901 and $1500 depending on the net tax liability.
[This brings up the possibility that NOT taking certain deductions and/or credits may increase your tax liability, but may increase your rebate by a great amount.]
I have modified the calculator to specify the line numbers for Forms 1040A and 1040EZ as well as Form 1040. Try it again, and see what you come up with.
I was confusing my earned income with my earned income credit. Line 7 was 18550, line 21 was 18550, but my tax liablity on line 37 was 0. I can’t get the calculator to work anymore but based on what you said I guess I’m not getting a rebate. Really wishing I could send the IRS that $1 now.:) Thanks for your help.
To: #74 by Samantha
Married filing jointly, 1 qualified child, earned income $18,550, AGI $18,550, tax liability $0. The calculator shows a rebate amount of $900.
BTW, if you did need to send the IRS that $1 (which you don’t), you could always file an amended return. :)
Thank you so much for your quick help! I know some people are mad that low-income people like me are getting a rebate, buy every little bit helps. 3 years ago my husband and I worked at a plant and made very good money, but that plant is now in mexico. We are both going to school and trying to keep our heads above water. To us “low-income” people, this is kind-of to little to late.
i recieve disability, i made only 9000 dollars last year and dont have to report it, will i get any money?
Interesting that a commenter is providing more in-depth information and answers than Flexo…
CDG: do you have a pf blog? Because I’d be interested to read if you do. You write very clearly.
Here’s where I’m confused.
I was laid off in 2007 and most of my income was in Unemployment.
I paid $651 into taxes, but line 37 on my 1040A says “0″.
Earned Income – 3011
AGI – 9004
Married Filing Jointly, with 1 child dependent.
I’m just curious and wanting to make sure that, even if our Liability is $0, we’ll still get the rebate.
Sam: I have no problem allowing the blog to be a conduit between those who have questions and someone who is happy to answer them. CDG provided the calculator; I’m happy he’s also willing to provide explanations for those who request.
To #78 by Sam: I don’t know what a “pf blog” is. I do have a website (www chateaumezcal com), where I express my opinions on a variety of subjects.
To #79 by Bernard: Unemployment benefits are not considered “earned income”.
If you “paid $651 into taxes, but line 37 on your 1040A says 0″, I assume that you received (or will receive) an income tax refund of $651 (or more if you had a refundable credit). If this is the case, you actually paid $0, not $651, since you get back what you had paid in advance.
WIth an Earned Income of $3011, AGI of $9004, Married Filing Jointly, and 1 QUALIFIED child dependent, you should receive a “rebate” of $900, even though you paid NO taxes. Say “thank you” to the Democratic Senate for their generosity with other people’s money.
To Everyone: Regrettably, I will be unable to answer any further questions on this subject, as I simply don’t have the time. If you discover any errors in the calculator, please report them to me at taxrebate @ chateaumezcal.com, and I will try to fix them. Thank you.
I think it sucks. Putting the country further in debt. I won’t be getting a cent, but even if I was I think it is stupid to indebt our children.
If it gets people to start dumping the money into the economy, it should prove effective, I’d imagine.
In any case, the calculator is quite useful for estimation.
I have a question: I had enough income to, normally, have tax liability, however we adopted a child last year and due to the Adoption Tax Credit our tax liability was zero – the full amount paid was refunded. If I understand your calculator correctly, we (married couple with two kids) get $1200 instead of $1800 because of the zero tax liability. Is that really how the policy is written, that if your tax is zero due to special credits rather than low income, then it reduces your rebate?
I know this has been answered, but I was still confused for a bit so I figured someone might find this helpful.
In reply to Samantha, I was confused about the $1 as well and actually started doubting that we would get a rebate.
It’s not stating that you had to pay a dollar to get the rebate, the way I understood it, but rather that $1 is the minimum liability to receive the $600/person rather than $300.
If you had no tax liability, but earned income was $3000+, You are entitled to $300/person(Single/Joint + Children)no matter what.
To #85 by Bernard:
You still have it a little confused. :(
If an “eligible” (see definition in the calculator footnotes) “taxpayer” has more than $3000 of (earned income and/or social security benefits and/or veteran’s disability benefits), they will receive the minimum “rebate” of $300 ($600 for married couples filing jointly) PLUS $300 for each qualified child. In this case, it doesn’t matter whether or not they have a net tax liability.
Alternately, if an “eligible taxpayer” has a gross income that is greater than the basic standard deduction ($10700 in 2007) plus the exemption amount ($3400 in 2007) plus a second exemption amount for married couples filing jointly, AND they have a net tax liability greater than zero, they will receive the minimum rebate described above. This is where the Net Tax Liability is very important.
And finally, if a taxpayer’s net tax liability is higher than the minimum rebate amount, or they don’t qualify for the minimum rebate amount, their rebate will be the smaller of their net tax liability or $600 (or $1200 for married couples filing jointly). So the Net Tax Liability is important here as well.
Thank you for clearing that up.
It doesn’t change what I can expect either way, and I’ve gotten the same answer in every place I’ve input the information($900).
Some of the verbiage used gets confusing.
Also, thanks for making the calculator and taking time to answer questions.
I don’t understand if a person didn’t pay taxes but made the $3,000 how can they get money back since? Where is the record that they worked at all. The IRS doesn’t even want you to send in paper work if you don’t owe them or they don’t owe you. Makes sense as it would be just a waste of time.
Cathy: You’ll have to file the paperwork in order to receive the credit.
They’re actually telling a lot of people to file whether they’re required to or not, just in case.
For instance, I had to file because of the unemployment benefits I collected anyway because it raised my Adjusted Gross Income.
However, everything I paid was refunded so I had no Net Tax Liability, which means I’m only eligible for the $600 for Married Couple and $300 for eligible child.
@ DAWN:
I got married Dec 25 and managed to file JOINT for that year…
so i’m on the opposite side of the fence…i was married for 5 days in 2006, yet got to file joint and reap the benefits…
but i don’t know if the IRS has a way of verifying ..
People asking why more of the rebate doesn’t go to people earning more than 87000 are fools. If you had $600 to give to somebody to stimulate the economy would you give it to bill gates or a poor family with kids? Who is more likely to spend the money? I a pretty rich guy. If you give me $600 im going to put it right in the bank on top the pile of money I already have in there. Im going to use that pile of money to buy a German car or Japanese electronics, not the america products the poor family is going to by.
Overall, it is a good calculator even though I disagree with using the number of dependents on line 6c since that line can include dependents 17 and older. I think an easier way to figure out net income tax liability is to take line 10 on the 1040EZ, or lines 32+37 on the 1040A, or lines 52+57 on the 1040. Another problem I have with the calculator is that it always shows me a rebate of $0 if there is $0 tax liability, even though it should show at least $300 if earned income, social security, or veterans disability benefits is $3,000 or more. Here is an example from the IRS website.
1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
If I plug this into the calculator, it says the rebate is $0. Either the calculator needs work, or running IE7 with an adblocker on Vista is messing up the numbers.
Toby: When I enter the information you list, I get $1,200 as a result in both Firefox and IE. Also, if you scroll the calculator down, you’ll see that the instructions specify the age limit for dependents.
I just found something interesting. If I enter the information from my list and leave the net income tax liability blank, I get $1,200. If I enter $0 in net income tax liability, I get $0. I saw that the instructions specify age limits, I was just thinking of people who look at the calculator and enter the number from 6c without reading the instructions. Overall the calculator will spit out the right answer most of the time. I just noticed that in some scenarios you have to enter $0 into a field and in other scenarios, you have to leave certain fields blank to get the right answer.
Toby: Thanks, I’ll look into that.
My only income is Social Security and I was instructed, years ago by the IRS not to file a return anymore. So do I get any “refund” and do I have to file?
My brother is on SSI. He doesn’t files tax returns as he says he never owes or get any money back. He tells me thier are no taxes taken out if his SS checks. He makes about 12K a year via SSI and has no other income. Would it benefit him to file anyway this year? That is, would he get the economic stimulous check if he did or would this be opening a can of worms?
Correction, my brother is on SSDI, not SSI. That is, he paid into SS for years and was disabled and now using his SS disability benefit. Not SSI when someone never paid into it. Not sure if that makes a difference.
Good job on the calculator. The flaws I found with the zeroes and blanks seem to be gone. Just a couple more flaws I found. With Married Filing Jointly, if there is no earned income, no social security, and no veterans disability, the calculator gives a correct answer if AGI is $17,501 or above. If AGI is $17,500 or below the calculator says the rebate is equal to net income tax liability and doesn’t count $300 per child. Same thing single except that $14,101 or above gives the correct rebate and $14,100 or below gives an incorrect rebate. Here is an example.
4) Individual with no wages, no social security benefits, no veterans’ benefits, AGI is $10,000, federal income tax liability is $125.
Individual rebate is $300
Calculator says the rebate is $125. The way I understand it, even if your tax liability is only $1 and you have no earned income, social security, or veterans benefits you get $300 single or $600 married filing jointly plus $300 per kid under 17 unless your AGI is less than your standard deduction plus exemptions. Unless I’m missing something, if your AGI is less than your standard deduction plus exemptions, you shouldn’t even have $1 of tax liability. Anyways, the rebate will never be $125. If you correct this, your calculator will be pretty close to flawless.
China will really appreciate this. It will help their economy
To #91 by checho:
================
If the IRS audits you, they can request proof of your marital status, and the date of your marriage. Failing that, they can always look at the county records. Never assume that the IRS won’t find out. They have extra-constitutional investigatory powers, because they can always bully a bank manager, doctor, country clerk, etc. into violating privacy laws, lest he/she too be audited.
To #93 by Toby:
==============
I added line number references because many people were misunderstanding the various terms. Note that I don’t say the number of dependents from Line 6c, but rather the number of qualified children from Line 6c. There is a check box for qualified children. I assume that you have the instructions for Line 6c in your 1040, 1040A, or 1949EZ booklet. Furthermore, I explain this line in more detail in the insructions.
Thank you for the suggestion regarding simplifying the computation of net tax liability. I think I may incorporate it. Check back later.
The calculator yields $1200 when I enter the figures you mention. There may have been a bug in an earlier version.
To #95 by Toby:
===============
You say that when you “enter the information from my list and leave the net income tax liability blank, I get $1,200. If I enter $0 in net income tax liability, I get $0.” I cannot reproduce your results. However, there was a “bug” in the earlier version (fixed Friday) that if you entered commas, everything following the comma would be ignored. Thus the calculator saw “1,200″ as “1″. That is why it said in BOLD type at the top of the calculator to NOT enter commas. I have fixed this problem, and you may enter commas now — if you are using the current version of the calculator on my web page. If you are linked to an older version (copied to someone else’s web page), you may get different results.
Because I was requested that the calculator fit in a small frame size, there is a limit to the amount of line number reference and other instructions that can be provided next to the input fields. I assume that someone who doesn’t know what “qualified child” means will “see below” as instructed. Furthermore, there is considerable additional criteria to being a “qualified child” than just being under 17 at the end of the calendar year.
To #97 by Grandmother:
======================
If you want to get a rebate, you will have to file a return. You will not get a refund, but you MAY get a rebate.
To #98 by Helper:
=================
For purposes of the rebate, SSI benefits are NOT qualified income, as stated very clearly in the instructions. If that is your brother’s only income, there is no reason for him to file a tax return, as he will not received a rebate. It would be a waste of time, but it would only “be opening a can of worms” if he filled out the tax return improperly, for example by declaring his SSI benefits as taxable income.
To #99 by Helper
================
SSDI benefits ARE qualified income for the rebate. Your brother should file a tax return showing the $12,000 SSDI income, and showing NONE of it as taxable. He will not have to pay income tax, nor will he receive a refund (since nothing has been withheld), but he will qualify for a $300 rebate.
Supposedly, the IRS will co-ordinate with the Social Security Administration, and send rebates to those receiving social security benefits without them having to file a return, but it is probably safer to file the return, and be on both “rebate” lists. You won’t get two rebates, but you will be assured of getting one.
To #100 by Toby:
================
Your examples of what you term “flaws” indicate the calculator is performing correctly. The rebate amount is the LESSER of net tax liability or $600 ($1200 for married couples filing jointly). If and ONLY if, the “taxpayer” has $3000 in qualified income (earned income, social security benefits, veterans benefits) OR (an AGI GREATER than the basic standard deductions plus one exemption (two exemptions for married couples filing jointly) AND net taxable income greater than $1), they qualify for the minimum rebate amount ($300 or $600) plus $300 per child. If they do not meet the aforementioned criteria, they do not qualify for the minimum rebate, or the additional $300 per child. See IRC Section 6428(b)(2) as modified by HR 5140. This is also clearly stated in the instructions.
MY MOTHER-IN -LAW RECIEVES SOCIAL SECURITY ONLY, DOES SHE NEED TO FILE TAXES THIS YEAR TO RECIEVE THE REBATE. OR WILL THEY SENT $300.00 TO ALL SS RECIEVERS.
To #103 by SANDA B (reply)
The latest information from the IRS indicates that low-income taxpayers who are not otherwise required to file taxes, MUST file a 2007 tax return to receive the rebate. There was some talk earlier about them coordinating with the Social Security Administration so that beneficiaries would not have to file returns, but they IRS decided it was less work (for them) to make the “taxpayer” do all the work.
This is actually quite a reasonable position. It will cost the IRS (and thus the taxpayers) billions to issue these refunds. If they can save a few billion dollars, it will benefit everyone.
Conversely, low-income taxpayers will be getting a “rebate” of (at least) $300, even though they paid no taxes! So why not have them file a return, even if they have to pay a tax preparer to fill out the return?
I’m certain that there will be many volunteer agencies to help senior citizens prepare their first tax return in many years, so it won’t cost you anything but time, and a postage stamp. You can even e-file online for free and save the stamp (if you want to spend 10 times as much time doing your return).
I thought you needed to earn at least $3000 dollars of wages or Soial Security to get a rebate. I checked other in the calulator for being single and left everything blank except for the AGI line 57 form 1040, and entered $14,000 dollars. I put $525 in the Tax liability and it calulated a rebate of $525. The $14,000 dollars is interest income from bank CD’s
In the above comment #105, I meant line 37 form 1040 for the AGI
To #102 by cdg
Single with $10,000 AGI and a tax liability of $125 meets the requirements of AGI being greater than the standard deduction of $5,350 plus one exemption of $3,400 with at least $1 of tax liability and would qualify for a minimum rebate of $300. The calculator spits out $125 if you plug those numbers in.
To #105 by Jim
For single the standard deduction is $5,350 and one exemption is $3,400 for a total of $8,750. Since your AGI meets the requirement of being greater than this with a tax liability greater than zero your rebate would be your tax liability of $525.
To #105 by Jim:
The computation of the “rebate” is described in the footnotes. A link to the “rebate” legislation is also provided. Read it.
You paid $525 in taxes which is less than the $600 maximum for single individuals, so you get the entire amount back.
The $3000 only comes into play when your tax liability is less than $300, in which case you would receive a government handout of $300 of someone else’s money.
cdg, it looks like your were counting $10,700 as the standard deduction for both single and married filing joint. The standard deduction is $5,350 single or $10,700 married filing jointly. If you think about it, tax liability, or line 57 on a 1040 won’t ever be above 0 if AGI is less than the standard deduction plus exemptions. Since the minimum rebate is $300, it seems like the calculator should change any rebate under $300 to zero.
To #107 and 109 by Toby:
Good catch. I was using 10,700 for everyone. I am working on it now, because it is different for all 5 filing status, and I have to change “other” to each status. Give me about an hour.
To Flexo:
Why do I get a “page not found” for about ten minutes after I post a message? This prevents me from posting another right away, as in the above case.
I wasn’t trying to rip your calculator, I was just trying to help you get it to where it will give the right rebate for all 28 scenarios on the IRS website. It’s cool if you want to create an option for each filing status, but it seems to me no matter what filing status you have, if you have any tax liability, you meet the requirement of AGI being greater than standard deduction plus exemption.
Kiplinger is trying to say that tax liability is line 57 of Form 1040, line 35 of 1040A or line 10 of 1040EZ; add to the amount on that line the total you claimed for the child credit or earned income credit.
That doesn’t seem right. As far as I understand you only add the child tax credit to line 57, not earned income credit or additional child tax credit.
To #111 by Toby:
I said good catch and I meant it. I didn’t notice it, and neither did over 332 CPAs who have used the calculator so far (or if they noticed, they didn’t bother to inform me).
The data on the IRS website is not necessarily accurate. They just posted it recently, and the IRS tends to make a lot of mistakes, and (sometimes) correct them later.
Your premise (that if you have any tax liability, you meet the requirement of AGI being greater than standard deduction plus exemption) may be true, but I would rather do the computation the way it is specified in the tax bill than rely on a premise that might overlook something. I already made that mistake several times :)
I believe Kiplinger is in error. The definition of “net tax liability” that I am using was based on discussions with several CPAs.
Well darn those folks that made over $97,000 in 2007! They paid no Social Security Taxes on anything over that amount while the rest of us paid on 100% of our incomes! Let the majority of us who do not earn anywhere near $97,000 benefit for once!
To Toby:
The calculator now gets the same results as the 28 IRS examples, so I guess the IRS got it right. :)
The IRS website also defines net taxable income the way we do (Line 57 + child tax credit). Thus Kiplinger is in error.
This is definitely the most accurate rebate calculator on the Internet. The only reason I can think of that none of the CPAs caught this is because it’s probably not common to have an AGI greater than the standard deduction plus exemptions when your earned income is less than $3,000.
My wife & I had no wage income in 2007 (1040, line 7)but did have Pension (line16) and rental income (self storage Business), line 17. Are these sources of income considered “earned income” for the purpose of receiving rebates?
I am deeply concerned that we need to borrow money from China to have this so called rebate, and but yet we can send 1.4 billion dollars to Mexico to help them secure their borders, now, I am rocket Scientist, but it seems to me that 1.4 billion dollars would employee a lot of American people to guard our own borders and to complete the fencing that they say we don’t have enough funding to complete. Look at the retirement benefits a person receives for being a Congressman who approved that, not you or I , we didn’t even get to vote on it. Remember the year they raised their income by 33%, when was the last time you or I got a raise who 33%? The average person annual raise is usually 3 to 5 percent, look at the retirement of the average person. When are we going to have the correct people in our Congress and the White House who is really looking out for our best interest? I can answer that for you. It will be when we the people of the United States take the monetary value out of being a Politician. Then and only then will we have the kind of people who care about this Country in control again. My parents taught me that I do not borrow from Peter to Pay Paul. Putting your needs before your wants is the way to keep control over your financial situation. I don’t think our government is doing the will of the people any more, and I don’t think they have for a very long time. 1.4 to Mexico to help control the border? I say it’s a pay off to the drug cartel to keep them out of the US.
Rick I believe pension and rental are not considered earned income. Even with zero earned income, you should receive a rebate if you AGI is above $17,500 and you had at least $1 on line 57 of the 1040.
To #116 by Rick:
What part of “Earned Income (see definition below)” or the instructions that appear under “earned income” below are unclear?
Pension income is NOT earned income.
Rental income MAY be earned income or investment income, depending whether or not it is your “business” or simply an investment. This is discussed in detail in the 1040 instructions, and in several of the IRS publications.
However, if property rental IS your business, you should be paying self-employment tax (the equivalent of the 7.65% FICA tax imposed on an employee AND his employer, for a total of 15.3%) on your rental income.
When the IRS calculates your “qualified income” to determine your “rebate” amount, they will include business, farm, partnership and rental incomes only if you include them on Schedule SE.
You should consult your tax adviser to help determine if your rental income is earned income.
This rebate is great. WHAT I CANT STAND IS THOES PEOPLE THAT MAKE MORE THEN $40,000 A YEAR HAVE SOMETHING TO COMPLAIN ABOUT. I LIVE IN THE LITTLE STATE OF N.D. AND IF YOU ARE MAKEING THAT KIND OF MONEY YOU ARE PRACTICALLY RICH. WHAT DO YOU PEOPLE HAVE TO COMPLAINE ABOUT I REALLY WOULD LIKE TO KNOW. I WORK HARD SO DOES MY HUSBAND AND WE HAVE 3 KIDS AND ARE WORRIED EVERY MONTH ABOUT GETTING SOMETING SHUT OFF. I THINK IF YOU MAKE ALOT OF MONEY YOU SHOULD SHUT UP AND ENJOY IT. I M SO SICK AND TIRED OF HEARING RICH PEOPLE COMPLAIN ABOUT HOW MUCH MORE MONEY THEY COULD HAVE. WELL COME TRY TO BE US FOR A DAY AND THEN LET ME HERE YOU COMPLAINE. UNTILL THEN SHUT UP FOR GOOD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
To Amanda:
You obviously don’t know what you are talking about. Just because someone makes more money than you doesn’t give you the right to take their money or property. Perhaps they work MUCH harder than you. Perhaps they are more talented. Perhaps they are smarter. Perhaps they contribute more.
And perhaps, as you apparently assume, they inherited their money, never worked a day in their life, and spend all their time finding ways to spend other peoples’ money (in which case they are probably hypocritical rich Democrats, like the Kennedy’s, Kerry’s, Edwards’, Gores, and most of Hollywood).
This “rebate” (as the media calls it) is NOT a rebate at all. It is primarily a hand-out of other people’s money to people who pay little or no taxes. Nor is it an “economic stimulus” package, as it is too little and too late to prevent a recession, and Congress knows this.
The ONLY purpose of the “economic stimulus payments” are to make stupid people such as yourself think the politicians are doing something good for you, so you will vote for them again even during the recession they caused with their misguided economic policies. In other words, “the “rebate” is nothing but payola, bribery, and chicanery.
If you think someone making $40,000 a year is rich, you need a reality check. Even your fellow commies have defined “being rich” as making over $75,000 per year ($150,000 if married filing jointly).
Maybe you can live on less in North Dakota, but that won’t even pay your rent in a slum tenement in New York City. Furthermore, if you are making less than $40,000 with a spouse and 3 children, I suspect you are getting food stamps, perhaps welfare payments, and subsidized medical care (which us “rich folk” have to pay a fortune for).
So how can you compare **your** cost of living with someone who lives elsewhere and actually works for their money?
Furthermore, the person living in high cost-of-living areas such as NYC, San Francisco, Los Angeles, etc. pays much higher income and property taxes than the person living in ####### ND, thus increasing his/her cost of living even more. Would you like to pay $10,000 a year property taxes or lose your home?
**I’M** SICK AND TIRED OF HEARING PEOPLE LIKE **YOURSELF** JUSTIFYING STEALING MONEY AND PROPERTY FROM ANYONE WHO MAKES MORE THAN YOU, AND REDISTRIBUTING IT TO THE “NEEDY” (AFTER THE RICH DEMOCRATIC POLITICIANS TAKE THEIR CUT, OF COURSE).
WEALTHY PEOPLE CONTRIBUTE FAR MORE TO THE COUNTRY THAN YOU DO!
WHO DO YOU THINK PAYS THE TAXES THAT SUPPORT PEOPLE LIKE YOURSELF AND ALL THE GOVERNMENT GIVE-AWAY PROGRAMS THAT PEOPLE LIKE YOURSELF INSIST ON?
WHO DO YOU THINK PAYS THE TAXES THAT PROVIDE **YOU** WITH POLICE, FIRE, AMBULANCE, HOSPITAL, ROADS, LEGAL AID, AND NATIONAL DEFENSE?
WHO DO YOU THINK PROVIDES THE INVESTMENT CAPITAL THAT CREATES REAL JOBS FOR PEOPLE WHO WANT TO WORK?
WHO DO YOU THINK DONATES GENEROUSLY TO CHARITIES, SO THAT WE CAN HAVE MUSEUMS, OPERA, CONCERTS, THEATRE, PARKS, PLAYGROUNDS, SCHOOLS, COLLEGES, ETC.?
WHO DO YOU THINK FUNDS THE RED CROSS, UNITED WAY, HOPE, AND ALL THE OTHER CHARITIES THAT COME TO YOUR ASSISTANCE WHEN YOU NEED HELP?
IF YOU WANT TO LIVE IN A SOCIALIST COUNTRY, WHERE ALL THE WEALTH IS STOLEN FROM THOSE WHO PRODUCE, AND (AFTER THE POLITICIANS TAKE THEIR CUT) DISTRIBUTED AMONGST THOSE WHO DON’T PRODUCE, MOVE TO RUSSIA, CHINA, CUBA, OR ANY OF THE OTHER WONDERLANDS THAT THE UNITED STATES KEEPS BAILING OUT RATHER THAN LETTING THEM STARVE, SO THEY CAN USE OUR MONEY TO SUPPORT TERRORISTS.
IF YOU WANT TO LIVE IN AMERICA, LEARN TO BE GRATEFUL FOR WHAT YOU HAVE, AND FOR THE OPPORTUNITY TO EARN MORE THROUGH HARD WORK AND INVESTMENT (ASSUMING THE DEMOCRATS LET YOU KEEP ANY OF IT). STOP TRYING TO TURN AMERICA INTO RUSSIA.
WHEN I WAS YOUNGER AND MADE A DECENT LIVING, THE GOVERNMENT TOOK MORE THAN HALF OF MY EARNINGS. YET I GAVE OVER HALF OF WHAT WAS LEFT TO CHARITY. NOW THAT I AM OLD AND SICKLY AND UNABLE TO WORK I LIVE VERY PRUDENTLY ON A FRACTION OF WHAT I USE TO EARN. BUT I STILL GIVE OVER 10% TO CHARITY. CAN YOU SAY THE SAME?
YOU COMPLAIN THAT YOU’RE CONSTANTLY WORRIED ABOUT SOMETHING BEING SHUT OFF? ARE YOU TALKING ABOUT GAS, ELECTRIC, AND WATER, OR ARE YOU TALKING ABOUT YOUR $100 A MONTH CABLE BILL? HOW OFTEN DO YOU DINE OUT OR BUY EXPENSIVE GROCERIES, RATHER THAN ECONOMIZING BY EATING RICE AND BEANS AND HOME GROWN VEGETABLES? DO YOU INSIST ON DRIVING A LATE MODEL CAR, OR DO YOU SAVE YOUR MONEY UNTIL YOU CAN AFFORD TO PAY CASH FOR A NEW ONE? ETC.
HOW DO YOU THINK “RICH” PEOPLE GET RICH? THEY WORK HARD, SAVE (WHAT THE GOVERNMENT DOESN’T STEAL), INVEST WISELY, AND DO WITH OUT LUXURIES UNTIL THEY ARE IN A FINANCIAL POSITION TO AFFORD THEM. THEY DON’T RUN UP HUGE CREDIT CARD DEBT, AND THEN SKIP TOWN OWING EVERYONE MONEY.
To paraphrase your closing sentence, TRY TO BE **US** FOR A DAY. UNTIL THEN **YOU** SHUT UP FOR GOOD. PLEASE.
The minimun of $3000 is for a single person to get $300, so would a married couple filing jointly need a combine total minimum of $6000 in order to get $600?
To #122 by Jim:
The $3,000 “qualified income” threshold is the same for single *and* married taxpayers, as stated clearly in the legislation, and even more clearly in the footnotes to the calculator — which I included so you wouldn’t have to ask questions that have already been answered. :)
To Flexo: Perhaps you could put a note above or below the calculator stating: “Please read the footnotes to see if your question has already been answered.” :)
Your #121 comment was very well put. I don’t make much , but I buget my expenses and get along fine. I don’t buy things that I can’t afford, and usually save and pay cash for things I want. I agree with you 100%
Meh, I think people just need to calm down about the whole thing.
I kind of take offense to the whole thing being called a handout, but mainly because 2007 was the first year I had no tax liability because I was having trouble finding a job after being laid off by a major banking corporation(that happened to lose $10 Billion in the last quarter of 2007).
My tax year of 2008 will be MUCH different, but the amount we’ll be getting will help out with residual bills and everything.
Either way, this type of “Discussion”, or rather attacking, isn’t what this whole thing was meant for. It was meant to help out people trying to figure out if they’ll be eligible for the “Tax Rebate” and if so, how much they’ll get.
Please take the bickering to a different arena.
I understand the calculator-maker(cdg) getting a little upset that people come here and just immediately go to asking what they’ll get instead of reading, but then again you have to expect the questions and take them with a grain of salt. I’m not sure sarcastic responses are conducive to the point of this page.
Does anyone know how the credit effect those of us that only get to claim our dependent children every other year?
I get to claim my child in 2008 but the ex gets to claim him in 2007.
If they go by the 2007 for the number of dependents how will that work for me? Do I have to wait until 2008 tax to have it adjusted?
Humm I wonder if the goverment thought this one through?
To #125 by Bernard:
1) I simply responded in kind to a very vicious attack (on those who pay taxes by someone who doesn’t) with a few facts that are conveniently ignored by such people, and by the politicians who foment and capitalize on class envy.
2) No one is calling “the whole thing a hand out”. For those who have been paying taxes, it is a well-deserved return of some of their hard earned money that has been confiscated from them in the form of “income taxes”. But for those who have not been paying taxes, it is quite definitely a hand-out.
3) If your company didn’t go belly up until the last quarter of 2007, why don’t you have income for at least 3/4 of the year, and thus qualify for a rebate? And if you were laid off earlier, where is the relevance of the company’s later financial troubles?
4) If your 2008 tax year “will be MUCH different”, you will receive your “rebate” then. As clearly explained above, the “rebate” is an additional (refundable) credit against 2008 taxes that is being payed approximately one year in advance. For this reason, it is initially based on your 2007 return. However, if your 2008 return qualifies you for a higher credit than your 2007 return, you will receive a payment for the difference. If your 2008 return qualifies you for a smaller credit than your 2007 return, you get to keep the difference.
So, if 2008 will be a better year for you, you will get your refund then. Say thank you to the Senate for their generosity with other people’s money.
5) I’m not sure what “this whole thing was meant for”. If you examine the various posts in this thread, people have expressed their various opinions pro and con throughout.
6) I spent a great deal of time tailoring and perfecting the calculator to be easy to use **and** produce the correct result (unlike all the other calculators that have appeared on the internet so far).
I spent even more time providing instructions and answering questions for those who are unable or unwilling to read and understand the tax bill, or even the previous explanations in this thread, and/or who have relied on inaccurate media explanations.
7) Defending those who pay taxes against vicious attacks by those who don’t is not “bickering”. It is essential.
8) I’ll tell you what Bernard. YOU spend your entire day answering questions that you’ve already answered, instead of getting your work done, and then you talk about grains of salt. OK?
9) I’m not sure there’s anything sarcastic about pointing out that instructions have already been provided, and asking what, if anything, was unclear (so that the instructions can be improved). Try to give others the benefit of the doubt, please.
To #126 by Dlphnnmom:
Your question raises a very interesting point. The “rebate” is technically a credit against your 2008 tax return. Your 2007 return will be used initially to compute the rebate, but the IRS will recompute it when you file your 2008 return. If you are “entitled” to a larger “rebate” you will get it in 2009. If not, you will not have to repay the excess.
Since your ex gets to claim the children for 2007, he will get a larger rebate because of the children (assuming they are qualified). But when the IRS recomputes *your* 2008 tax return, you will be entitled to a larger rebate (and receive a payment for the difference) because of the children, but your ex will NOT have to repay the difference even though his 2008 return shows he deserves less of a rebate.
That’s what the literal interpretation of the tax law seems to indicate. The IRS may take a different position, when and if they discover the problem.
I doubt the “government” thought this (or anything else) through. They just write up the legislation, and let the regulatory agencies and the courts sort out all the details and ambiguities.
I don’t think it’s fair to the folks that pay taxes and won’t be getting anything! I will further say that I am happy that I will be getting one but then again… I really wish the active duty military pay checks would go up so we wouldn’t qualify for it!
I wish the government wouldn’t be so “spend happy”! They are teaching the poor to go spend..go ahead… spend some more, don’t save, go to the welfare line after you bought your new HDTV and no food for your kids.. here is your bonus for getting your food stamps and not working to your potential!
Greed, greed, greed. From the cooments here it is easy to see what is wrong with this country. Everyone is suffering from the “Imperial I syndrome”. What an “I” getting back? Why don’t “I” get a rebate? Why do “I” have to pay more than the other guy? “I” want mine no matter what it costs the country in the long run. You live in a country that 99% of the rest of the world would give anything to live in and by comparison you are some of the richest in the world so give it a rest people and thank God for what you have !!!
I love what people think and how they express themselves in this matter.
The larger picture is — if our government didn’t waste so much money fighting for oil in Iraq we wouldn’t be in this fix. A trillion dollars expended and what did we gain? A trillion dollars could have bought our freedom from oil in the mideast.
I’m worried that our country is going to be another India with millions of homeless on the streets and a handful of rich with a small middle class. There appears to be an economic evolution of sorts.
The money needs to flow down to the least of our citizens. I say — the poor always have to spend. We should always support policies that give some wealth to the poor even if they don’t accomplish anything. It all trickles up anyway.
To #130 by Kam:
What a load of liberal, socialist, alarmist nonsense.
If Benevolent Big Brother didn’t spend so much money trying to regulate our every move, and trying to protect us from every possible abuse — except violent crime, terrorism, and the government itself — THEN we wouldn’t be in this fix.
If the Democrats, beginning with the Carter Administration, and other card-carrying liberals, hadn’t seriously curtailed oil exploration and drilling operations in this country, THEN we wouldn’t be dependent on foreign oil.
If the State Department and every administration since World War I wasn’t so concerned with kissing Ahab’s backside to obtain oil, THEN we wouldn’t be paying so much for foreign and domestic oil, and wwe wouldn’t need to bow to Arab oil blackmail.
Furthermore, we are not “fighting over oil in Iraq”, but rather fighting for the freedom and democratization of a culture
that despises freedom and democratization, whilst trying to protect our vital interests (and those of our allies throughout the globe) against those who would destroy our way of life, and our very existence, if they were given free rein.
There is no tangible evidence that “a A trillion dollars could have bought our freedom from oil in the Mideast”. If pouring money into such a project would necessarily gain the desired result, believe me — BIG BUSINESS would have spent the trillion dollars, and profited from the results, long ago. We wouldn’t need the government to do so.
In fact, the only time we “need” the government to do anything is when there is no profit in it, and thus no logical reason to undertake something that will cost far more than any potential gain.
As you point out, the government has poured a vast amount of money into the war with Iraq, and the (supposed) war on terrorism (while at the same time supporting the very regimes that finance and foment terrorism, e.g. Saudi Arabia, the “Palestinian Authority”, and (yes!) Syria and Iraq), with nothing to show for it.
Similarly, our government has poured trillions into the “war on drugs”, only to wind up with more wide-spread drug usage than before the “war” began.
**In fact, no government ever solved any problem without creating a worse one!**
So what makes you think the government pouring a trillion dollars (or more) in alternate energy sources would accomplish anything? If there is a viable alternative, free enterprise and capitalism will discover it all on their own, and the research that will eventually accomplish this is going on right now.
For example, there is a company in Israel that has discovered how to burn sea water (sic!) and obtain energy from it (at least in the laboratory). If this can be done economically (and safely, of course), we can stop bowing to Arab oil blackmail, as sea water is the most abundant resource on the planet, and it is a renewable resource!
Don’t worry. This country is NOT going to be another India with millions of homeless on the streets and a handful of rich with a small middle class — unless the liberals get their way and turn us into another socialist state.
The money ALWAYS flows down to the poor. It NEVER trickles up, at least in a free society.
Let’s keep this civil and on topic. There are other avenues for arguing betweeb liberal and conservative ideologies. Let’s stick to the tax rebate rather than ideological debate.
the calculator says my husband and i are eligible for the full rebate amount….but my income tax lady says we are not because i did not have any income for 2007???
wow , never thought id see so many people complain about getting more money back… weird. You dont need this calculator to figure what your getting back, its easy. If you paid NO taxes, your getting nothing back, if you make more than 150k you get a little less back. if you made more than 3k you will get 600 per person, 1200 per couple 300 per kid. come guys its not rocket . science!! they say its not “free money” but in a way it is. this is from a tax cut, it is YOUR money , correct, but its money you normally paid in taxes, now your getting it back, hence the word “Rebate” now quit cryin and buy AMERICAN!!! USA USA!!!
To Samantha
If your husband’s income and tax liability is enough for the full rebate, it doesn’t matter if you didn’t have any income. A joint return treats both of you equally no matter which one of you earned the income.
I’m suggesting an additional line of javascipt code for the calculator for a situation that probably won’t be common, but could happen. If you file married filing separately and are forced to itemize because your spouse itemizes, you could end up itemizing for less than the standard deduction. So if your only income is $8,000 unemployment, and you itemize for $2,000, you would end up with taxable income of $2,600 and a tax liability of $260. This scenario shows a rebate of $260 in the calculator. In reality, you would fail to meet the requirement of qualifying income of at least $3,000 or net income tax liability which is greater than zero, and gross income which is greater than the sum of the basic standard deduction plus the exemption amount. That would mean that the rebate would be zero. If you add the following line of code after the if statement in the section of the program that applies the special rules, the calculator will show a rebate of 0 in this scenario.
else
{rebateamount=0;}
Is this correct, or do the earned income and gross income requirements only apply for getting the $300? In other words, can your gross income be below the standard deduction plus exemption and you still get a rebate for whatever tax liability you had, but not get bumped up to $300? If this is the case then the calculator is correct as is.
wILL i QULIFY FOR THE tAX rEBATE IF I CLAMMED ERNED INCOME CREIT WHEN I FILED MY TAXES
People asking if they qualify for the rebate should really believe the calculator. The IRS gives 28 different scenarios on their website and the calculator gives the correct answer for each one. If you want to ask anyway, please leave more details like AGI, tax liability,earned income, social security, etc.
To Sherrie
There is not enough information in your post to answer your question. You can get an earned income credit on earned income of less than $3,000, and in that case you won’t get the rebate. If your earned income is $3,000 or more, you will get a rebate. The earned income credit isn’t part of the criteria for qualifying for a rebate, so it won’t help you get a rebate and it won’t stop you from getting a rebate.
What is net tax liability?
In my opinion, they are just giving a rebate to try to postpone the recession until Bush is out of office.
I have a good question that the specialist in the IRS could not answer. On their example line 4 for a single person without children, if they have an AGI of $10,000 that does not come from any of the incomes that they say you need to qualify, ” wage income, social security benifits, veterans benefits, etc.”; than on form 1040, what line is this income coming from to have a $10,000 AGI to let you qualify to get the rebate which they say is $300? It looks to me like something is missing.
To Jim:
Here is a link to the 1040. http://www.irs.gov/pub/irs-pdf/f1040.pdf?portlet=3 Here are some of the lines that this income could be coming from: 8a,9a,10,11,13,14,15b,17,19,21. These are all lines where you could have income that isn’t considered qualifying income. If you don’t have qualifying income of at least $3,000, then you have to take the second part of the rule into consideration.
Even without $3,000 in qualifying income, if the “taxpayer” has gross income greater than the basic standard deduction plus one exemption (two exemptions for married couples filing jointly) AND the “taxpayer” has net taxable income of at least $1
then the “taxpayer” qualifies for the minimum “rebate” amount of $300 ($600 for married couples filing jointly) plus an additional $300 per child.
If a single person had $10,000 in unemployment and a tax liability of $125, they would meet the requirement of AGI being greater than the standard deduction($5,350) plus one exemption($3,400). They would also meet the requirement of tax liability of at least $1 and thus, would get a $300 rebate.
It amazes me that an IRS “specialist” can’t answer this.
To Toby
I didn’t know they had a second part. They aren’t very clear on their web site about how everything adds up. I know about the income from the lines you mentioned, but in one sentance they say one thing and the next they say something else. They say that interest income doesn,t count, but you say if it is large enough that after the standard and personal deduction, if you oue taxes on it, than it does. (Example) Do the math on $18,000 dollars in interest. That would be a tax liability of $1,000. For a single person this would be a rebate of $600. if this is ture.
Interest income doesn’t count towards the $3,000 in qualifying income to get a $300 minimum rebate without any tax liability. So $4,000 interest income with 0 tax liability would get you no rebate. $4,000 qualifying income with no tax liability would get you a $300 rebate. Since your interest income of $18,0000 is high enough to generate a tax liability of $1,000 you will get a refund of the tax liability up to $600 for single. If your interest income was $8,850 with a tax liability of $10, you would get a rebate of $300 because your AGI would be greater than the standard deduction plus exemption and you tax liability would be at least $1.
I am kinda disgusted with this whole idea in general. People making $14,000 a year, have a couple of children and get a tax ‘refund’ of almost $7,000, didn’t pay IN any taxes (Zeroed out on line 57) and the tax rebate calculator says they get $1,200?? They have already ‘taken’ $7,000 of money that they didn’t earn! How in the heck do they get more and the people who paid in get less?? This is the stupidest thing I have ever seen!
I’m a widow filing as head of household with one child. My part-time wages totaled $2917.00, but my 6 yr old daughter received Social Security Survivors Benefits of about $8000.00. Our only other income was interest income of $11,000.00 Will we qualify for a rebate? I’m confused about whether the Soc Sec counts toward the $3000 minimum earned income because our Soc Sec doesnt come from Dept of Veterans Affairs.
tax rebates may be a short term stimulus but in the long run,if Americans bought 50% less foreign made goods then the economy would come back on its own!!!
Yhis is my situation Married Filing Joint 2 dependents both OVER 17, one is in college 4 exemptions in all Do we get anything? Thanks
Seems to me, the best economic stimulus would be to no longer grant any bennies to illegals and terminate their employment, let Americans move into those jobs ( including my son and two of his friends who were displaced because they wouldn’t work for one half of our $7.50 minimum wage ) have them pay their taxes as well as getting an income to spend and their medical and dental restored through the private sector there by restoring a few jobs in the medical field and not adding more government jobs. Make it attractive for corperations to bring their jobs back to the U.S.A. and costly to import goods. THERE’S YOUR STIMULUS PACKAGE !!!
This rebate program has a lot of loopholes in it if the situation falls right for you. Example; If you file single and have a qualifying dependent and have a non qualifying minimum income, but an AGI of $14,000, you get a $600 rebate, but if the same as above applies to you and you file as head of household , you get nothing.
I can think of some other things that would also benefit some people with no income and taking an IRA distribution. If they are over 55 and want to withdraw some of their money without paying taxes on some of the amount above their deductables.
That is, if all of this is correct.
my mother is 82 years old and is only drawing social security. Can she file taxes in order to get the stimilus rebate?
Also my sister is on social security and a state supplemental check. Can she file to receive a rebate?
Thank you for the help
Toby-
Can you respond to #146 about Soc Sec survivors benefits?
Thanks- Gena
Flexo- can you respond to #146 about Soc Sec Survivors benefits for me?
Thanks- Gena
Gena: On every location where the IRS mentions survivors’ benefits, they are very specific in saying that benefits *received from the Department of Veterans Affairs* are the benefits that will be included in the qualifying income calculator. Did you receive these benefits from a private insurer? My guess is that they would not be included… but you should always check with an *informed* tax professional — which I am not.
To 146
I’m not sure if they are including Social Security Survivors Benefits since the IRS site says survivors’ benefits from the Department of Veterans Affairs. However, without seeing your return, your earned income of $$2,917 plus your interest income of $11,000 should give you an AGI of $13,917. If that leaves you with a tax liability of at least $1, you should get a $600 rebate. Let me know what form you used, what your AGI was and what your net tax liability was. If you don’t know your net tax liability, I can tell you what numbers to look at based on what 1040 you used.
Is self-employment tax figured into the calculation at all? (married filing jointly, no kids, over $300 qualifying income)
Looks like I have a $0 taxable income, but also $1200 in self-employment tax (line 58). I will only get the minimum rebate rather than a larger one based on the self-employment taxes paid, correct? If those self-employment taxes were seen as standard tax (line 44) then we would get the full $1200. Seems like an oversight to me.
The self-employment tax is your contribution to Social Security and Medicare. It has no bearing on the rebate. It works the same with a regular job, the Social Security and Medicare you pay doesn’t factor into the rebate. You need $3,000 qualifying income, not $300. If you have the $3,000 you will get the minimum rebate.
Making six figures and can still find something to complain about. If cost of living is so high in your area then it is quite simple,,, MOVE…. Do Any of you think that we choose to be single mothers with little to no income? I never dreamed that my husband would cheat on me and run off leaving me (a stay at home mom for the last 14 years) to care for my children, but he did and i am doing the best i can.. I thank God for any money that comes my way right now, but i do not think it is owed to me. I am trying to support my family the best i can, but it is a struggle every minute.
I havent seen anyone mention the filing status of Head of Household. The rebate for this status is supposed to be $600.00. When i use the calculater it gives me a rebate amount of only $900.00 because i used my only option of single but when figuring it using the Head of Household amount i should get back $1200.00, if my information is correct. I have been reading info all night, and on all the other sights it is giving the $600.00 figure for that status. Please let me know?
Thank You!!
What I don’t understand is, my daughter is 17 years old and in 12th grade, but I can’t take a credit for her anylonger. I thought the legal age was 18? I still have to fully support her. She has a part time job that she made 4,000 last year, but because I claim her as a dependent she won’t get rebate and I won’t get the rebate for her because she’s 17. This does’nt make sense to me.
I see some problems with this calculator with giving an accurate answer with what the real results would be on a tax form. If a single person with a child made a non-qualifying income of $8751 but an AGI above $8750 and claimed themselves and the child as dependents, this would be $6800. The standard deduction would be $5350. That’s a total $12150.
With an AGI of $8751 and a deduction of $12150, there would never be a tax liability. So with no tax liability, there wouldn’t be any rebate. This would appear in all the filing status, so in order to have a tax liability your AGI would need to be higher than your deductions to qualify under the AGI. Filing as head of household would make the deductions even higher
Hope this didn’t confuse anyone.
I think as long as your child is in school and you are suppoting them through college, you should be able to take a tax credit for them. If not completley at least a partial credit. I still have to cloth, feed and house them.
Jim: The calculator is accurate based on the bill that was signed into law. Certain inputs are calculated differently than they would be for other purposes, so please check the explanations by scrolling down in the calculator window. If you are still unsure, let me know. Based on your description, I entered Single, 1, 0, 0, 0, 8751, and 0 into the form and the result is 0.
Anyway you look at it, if you have a non-qualifying income you will need to have an AGI larger than your deductions to have a taxable income that will generate a tax liability of at lease $1. Examples; single with one child, ($12155); single with one child filing head of household ($14655); married without children, ($17505); Married with one child, ($20905)
Some people may be better off not claiming their child. Example; single with AGI of $8755 has a tax liability of $1, gets a rebate of $300.A single claiming one child and an AGI of $8755 will get nothing unless their AGI is at least $12155, then they would get $600.
If you are single claiming one child, the calculator does allow you to enter an AGI of less than $12155 and enter a tax liability of $1. Doing so shows a rebate instead of an error. Like you say, if they enter it right than it does work.