rebate

If they file a joint return it will be based on the joint return information. There's no need that both spouses have taxable income in order to receive the full amount.

tks

bw

But it IS necessary that they have "qualified income." And that is the usual income items on a tax return, plus untaxed social security and VA benefits which don't even appear on the tax return.

Just how IRS is going to administer this is tricky though.

Presumably in a case like this they will issue the rebate based on return data and then (after October 15th -youknowwhatthatis) will adjust with reference to the VA database.

That's the way the law is written, that qualified income includes VA benefits.

But.... we'll see.

ChEAr$, Harlan Lunsford, EA n LA

No. Assuming no children under 17, the couple will get a maximum of $1200 and a minimum of $600. That minimum requires $3000 of one spouse's earned income and $3000 of the disability pension.

Nothing has been announced yet about how people who don't have to file tax returns will be identified. In the meantime, if you file a joint return and the Income Tax after Credits is at least $1,200 on your 2007 return, you'll get $1,200.

Time will tell.

bill

A whole lotta poeple dont pay much in tax after the credits, based on your response, they won't see a dime even though they work. Child Tax Credit and EIC wipe out a lot of liability.

bill

Phil (or others) - I've seen $300 per person minimum and $600 also throw about. What determines whether or not you get more than the $300 (for a minimum of $3,000 income from last year, or something to that effect?)

Wondering about my child who started her working life in t/y 2007 and is no longer my dependent. How can we tell how much SHE will get as a single individual (Does make considerably more than $3,000 if 2007). I've looked at online resources, and can't see where this is stated.

Thanks!

My response was to you, not to people whose liability is wiped out by the Child Tax Credit and EIC. People with zero income tax after credits EXCEPT CTC and all refundable credits, including EIC, will get the $300 minimum if they have the $3,000 of qualifying income.

You start with income tax after credits except the child tax credit. If that amount is $600 or more ($1200 on a joint return), you get $600/$1200. If it's less, you get only the amount of tax after credits, but no less than $300 if you have $3,000 of qualifying income.

See CNNMoney.com Rebates: What you need to know

Condor

And one significant piece of misinformation. CNN says that to get a rebate check you MUST file a 2007 tax return. I've seen nothing official that confirms that.

I'm still waiting to hear something official about how people who qualify for a check but are not required to file a 2007 return will be identified. My thought is that FMS should do it since they know who's getting SS and Veterans' benefits.

I've seen something in the press about SSA and VA sending out a form for people to file with IRS, which makes no sense, which may be why that's the way they'll go. A double benefit of this approach is that it would open the door for phishers to send "official" notices requesting information, including the bank account information that our super-efficient current administration wants since it's pushing the idea of direct deposit of the checks, again according to press reports.

I've been in Washington too long to believe anyone will really think this through, especially with Congress pounding at the gates to get the cash to the people in time for the election.

In any case, people who are not required to file a 2007 return should hold tight and await further developments. And they should be extra careful who they send any kind of information to, stopping to think, "Wait a minute. Don't they already have this information?"

Ah, thanks Phil. Appreciate it.

If you start to think this through you quickly come to a conclusion that it is a mess that requires careful thought and the ability for various computer systems to communicate with each other. For example, many people who receive SSA & VA benefits have other income and file tax returns. The rebate based on a filed tax return could be larger than the $300 rebate under the qualified income rule. Some of these people are dependents on another taxpayer's return. Dependents are not eligible for a rebate.

(balance snipped..)

The bill as passed does contain an appropriation for both SSA and VA in order to "administer" their part of the program. So that tells me that those records will be consulted in the absence of actual tax returns for 2007.

ChEAr$, Harlan Lunsford, EA n LA

You got that right, Paul.

ChEAr$, Harlan

You guys need to keep the faith!

All will go well, nearly $300 million is planned to facilitate the implementation of this act, the policy analyst, lawyer, program analyst & computers programmer (s) are up to the task.

Bill - EIC doesn't wipe out liability- only line items 47-55 (day care, education, energy, foreign tax, child tax, retirement and various other credits from rarely used forms decrease diability. You need to read the 2/13/08 US Treasury Press Release which has 5 pages of examples.