Bush's Tax Rebate Breakdown

[Admin]

Fellas,

Please take a look at this email that I received about the tax rebate.

Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the Internal Revenue Service, with an additional $300 per child. People earning at least $3,000 and those who owe little to no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates - $50 less per $1,000 they make over those thresholds.

This money will also need to be reported as income next year . A little deceiving in that most will think this is free money when recipients may have to pay in taxes the amount of rebate or more in 2008. The best course of action is to save what ever you get and maybe draw a little interest...which kind of defeats the purpose of the "Economic Stimulus Plan".

The check is in the mail
Week Last 2 digits of your SSN Receive your check by week of
1 00 - 09 July 23
2 10 - 19 July 30
3 20 - 29 August 6
4 30 - 39 August 13
5 40 - 49 August 20
6 50 - 59 August 27
7 60 - 69 Sept. 3
8 70 - 79 Sept. 10
9 80 - 89 Sept. 17
10 90 - 99 Sept. 24
For married taxpayers who filed a joint return, the first Social Security Number on the return determines.

FACT SHEET:
EXAMPLES OF HOW THE ECONOMIC GROWTH PACKAGE WILL BENEFIT AMERICANS

Married with children:
1) Married couple with two children1, earned income of $4,000, no federal income tax paid.
•Individual rebate = $600
•Child tax credit = $600
TOTAL = $1,200

2) Married couple with two children, earned income in excess of $3,000, AGI = $45,000, federal income tax is $323.
•Individual rebate = $600
•Child tax credit = $600
TOTAL = $1,200

3) Married couple with two children, AGI = $48,000, federal income tax is $773.
•Individual rebate = $773
•Child tax credit = $600
TOTAL = $1,373

4) Married couple with two children, AGI = $80,000, federal income tax paid in excess of $1,200.
•Individual rebate = $1,200
•Child tax credit = $600
TOTAL = $1,800

5) Married couple with two children, AGI = $160,000, federal income tax paid in excess of $1,200.
•Individual rebate = $1,200
•Child tax credit = $600
•Phase out reduction = ($500) [5% x ($160,000 - $150,000) = $500]
TOTAL = $1,300

1 All children referenced in the examples are qualifying children for purposes of the child tax credit.

Head of household with children:
1) Single parent with two children, earned income of $4,000, no federal income tax paid.
•Individual rebate = $300
•Child tax credit = $600
TOTAL = $900

2) Single parent with two children, earned income in excess of $3,000, AGI = $38,000, federal income tax is $433.
•Individual rebate = $433
•Child tax credit = $600
TOTAL =$1,050

3) Single parent with two children, AGI = $60,000, federal income tax paid in excess of $600.
•Individual rebate = $600
•Child credit = $600
TOTAL =$1,200

4) Single parent with two children, AGI = $90,000, federal income tax paid in excess of $600.
•Individual rebate = $600
•Child credit = $600
•Phase out reduction = ($750) [5% x ($90,000 - $75,000)]
TOTAL = $450

Married, no children:
1) Married couple with no children, earned income of $4,000, no federal income tax paid.
• Individual rebate = $600
2) Married couple with no children, earned income in excess of $3,000, AGI = $20,000, federal income tax is $930.
• Individual rebate = $930
3) Married couple with no children, AGI = $25,000, federal income tax is $1,430.
• Individual rebate = $1,200
4) Married couple with no children, AGI = $160,000, federal income tax paid in excess of $1,200.
• Individual rebate = $1,200
• Phase out reduction = ($500) [5% x ($160,000 - $150,000)]
TOTAL = $700

[cado]

Thanks for the break down and the tips of saving the rebate for later.