Tentative deal reached on tax rebates

[sweeps]

Reportedly $300 per person up to $1200 per household. Income limit is $75,000 for individuals, $150,000 for couples.

Article

[disneysteve]

Originally Posted by sweeps

Reportedly $300 per person up to $1200 per household. Income limit is $75,000 for individuals, $150,000 for couples.

Looks like we'll be getting checks after all. So does that mean we'd get $900 - $300 for me, $300 for DW (who works) and $300 for our one kid?

I'm still not clear on where this money is coming from? How will this affect the taxes I owe or refund I'm due for the year?

[Aleta]

Did you notice that in order to receive that rebate that you had to have earned at least $3,000 in 2007. I don't think that they are going to give checks to those who haven't earned any income. Also, it says that $300. is the minimum and if you paid more in taxes, your rebate could be more. But, I think that it is caped at $1,200. per household.

[sweeps]

My guess is it's based on how you file. If you file jointly and as a couple make more than $150K you get nothing.

Aleta is right. You must have earned at least $3,000 as a single (or as a couple if filing jointly) to earn the rebate for your household. If you've just been drawing social security or welfare, you're probably going to get nothing.

But we won't know for sure on any of this until the law officially passes.

[Aleta]

Sweeps: It's possible that they might consider social security as earning money in order to help the older ones on fixed incomes.

[LivingAlmostLarge]

Gee $300 is a lot lower than the bandied about $800.

[aida2003]

I wonder where it'll be possible to get a clearer picture. Is $150k gross or a couple's AGI? Does that mean that first everyone will have to file their 2007 taxes and then the IRS will tell who qualifies to get a check?

Very confusing and confused . We're on the line to see $$ or not.

Oh, yes, I also wonder, in case we get the money, will it be CASH only or income to report on 2008 taxes.

[texastek76]

I have seen that the income limit (150k) will be higher for couples with children but I have been unable to find out any more info about how much higher the limit will be.

[savingmama]

The article on MSNBC about this says
"The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps rise higher for individuals and couples with children." So there is still a lot of unsurety about whether it is AGI income or not. This range definitely opens up room for a lot more people to qualify.

Also, we would most likely be doing our taxes before the checks came, because other articles I read said that checks probably wouldn't be sent out until the summer anyway. So by then, the IRS would know if you have earned income in order to send you a check (Hopefully we won't have to file any additional paperwork!). Makes me think that everyone that made any income (over $3000) this past year, even if it is only a little should definitely file, even if they don't pay taxes or earn any credits, just to insure that they will get a rebate check if they get sent.

[Thrif-t]

Ok I'm just wondering about my deceased mom, a pension would count as income right? So I should file so her estate would get the rebate. Right?

Oh and aol has an article about this...don't know how to post the link but I copied some:

Congressional leaders completed a deal Thursday with the White House on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.

Individuals who pay income taxes would get up to $600, working couples $1,200 and those couples with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.

So I took it I'd get more then just the 1200 because we have 3 kids.

[sweeps]

Thrif-t, you appear to be correct. Marketwatch has a follow-up article with some more detail and some possible scenarios.

[mom-from-missouri]

By what they are saying now, we would get $2100 in our house.
But, as DH pointed out, it says "proposed" not "set in stone".

[gackle]

All feelings about the rebate aside, our emergency savings just got an $1,800 unexpected boost.

[aida2003]

After skimming some examples of rebates before going to work, it seems we'll get some money too. The confusing part was that I found 2 examples applicable to our family. In an example of income, it sounded we'll qualify for a partial rebate, but in another example where AGI is used, we'd qualify for a full rebate. Go figure .
As I said before, I DO disagree with this scheme, but I'm sure I'll take the money. It buys 2 tickets to Germany or it adds up to our savings. It doesn't matter which way I look at this, because it'll be in the same pot.

[disneysteve]

I still don't understand exactly what this money represents. How will it affect my taxes for 2007 or 2008? I need to know that before I can give any thought as to what to do with the money. If it essentially gets repaid through a tax adjustment later, it can't be spent as it will be needed later.

[aida2003]

Originally Posted by disneysteve

I still don't understand exactly what this money represents. How will it affect my taxes for 2007 or 2008? I need to know that before I can give any thought as to what to do with the money. If it essentially gets repaid through a tax adjustment later, it can't be spent as it will be needed later.

I'm sure it won't affect our 2007 returns. That year is all gone, but the gov't is sneaky. One of scenarios can be as follows: the economy revives thanks to hand-outs, though I doubt, and at the end of 2008 we'll get a suprise that we must declare rebates as income and due to that some will be tipped over the AMT threshold. But that's just my worst imagination, so pay no attention

How was it with the 2001 rebates? We didn't qualify, so I know nothing.

[negreenfield]

The part I'm curious about is the jumbo mortgage change. Will this only be for new mortgages or is there refinance capabilities? Also, what areas are considered the more expensive areas that will qualify, California, NYC? I'd love to refinance if I can get below 5.5% for 30 years on $450K. I'm comfortable paying my current 2 to avoid the jumbo mortgage but if I can consolidate at a lower rate it seems like a no-brainer.

[jIM_Ohio]

Here are my random thoughts

1) CNN, what I read on the web, and what I saw on a couple other reports suggest to me this is a temporary lowering of tax brackets, or an addition refund in addition to what you already receive.

evidence of this (circumstantial):

a) people are reporting this is deficit spending. If this was an advance of a 2008 tax return, it should not affect the deficit at all, or be considered additional government spending

b) the sources are the more reliable portion of the media

2) morning talk shows on radio had callers saying this was an early tax return for 2007. I doubt too many people really understand taxes enough to even guess at this.

a) this evidence is hearsay at best, and the sources are rednecks in the middle of Ohio.
b) if it's an early tax return, still not a bad thing

3) we have twins due in June. If they come early enough, do I get another $600?

[gackle]

It was just speculation from talk show hosts, but because this is tax season the IRS will be bogged down so we shouldn't expect these rebates until June or July.

[aida2003]

Originally Posted by jIM_Ohio

3) we have twins due in June. If they come early enough, do I get another $600?

I might be wrong, but I do not think your kids (congrats!!!) will get anything. My guess is that there rebates are based on 2007 info (income and kids).