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later. They will arrive as a separate
check, not as part of a tax refund. If you owe back taxes,
the IRS will
keep the check and apply the rebate to your balance.
All will need a valid Social Security number and must file a
federal tax return to get a rebate.
Rebates for Those Who Paid Taxes
The amount of rebate you receive will depend on your filing
status and the amount of income tax you paid in 2007.
-
Married taxpayers will get a maximum rebate of $1,200
and singles $600, if they paid at least that much in
taxes for 2007. Filers with children under 17 get an
extra $300 per child.
-
Filers with small income tax liabilities will also get
rebates. Married taxpayers who paid $1 or more of tax
will get $600 if their income topped $17,500 and single
taxpayers will get at least $300 if they made $8,750.
The income thresholds above relate to earned income such as
wages and income from self-employment.
Rebates for Those Who Paid No Taxes
Those who don’t pay any income tax can still get a rebate.
-
Married taxpayers with at least $3,000 in earned income
will get a minimum of $300 plus $300 per child. Singles
with $3,000 of earnings will receive $300.
-
Seniors and disabled veterans are also eligible for
rebates based on their Social Security income and
veterans’ disability. However, they must file a tax
return to get the rebate. This means that those who draw
only Social Security and don’t normally file tax returns
must now file a federal tax return to get the benefit.
No Rebates for Dependents and Higher Incomes
Anyone taken as a dependent by another filer will not be
eligible for a rebate.
In addition, those with high incomes will not be eligible
for a rebate: Rebates will start phasing out at levels of
$75,000 adjusted gross income for singles and $150,000 for
married taxpayers. Thus, someone at a pin level like Diamond
won’t qualify.
Fraud Alert!
Do not respond to any telephone calls or e-mails purportedly
from IRS asking for banking or other information so that
they can deliver your rebate. IRS
does not communicate this way!
Any contacts of this nature will most likely be an attempt
at identity theft, and if anyone contacts you in this manner
contact your local
IRS office!
Joe
Learn more about
Joe DePetris, Jr., and IBO tax return preparation
and tax issues at
IBO Bookkeeping 101.
Find more
Tax Tips for IBOs from Joe DePetris, Jr., CPA.
This article is provided as an
educational resource for your guidance, and is
strictly informational. It does not constitute
legal, accounting, or other professional
counsel. Nothing included herein implies a
recommendation by the author, the
IBOA International, or
Amway Global, of any course or method of
regulatory compliance. Readers and users who
intend to take, or refrain from taking, any
action based on information contained herein
should first consult with their qualified tax
advisor, preferably a C.P.A., or appropriate
regulatory authorities.
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