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Many low and middle-income households, seniors, and disabled veterans are eligible to get federal income tax rebates later this year. You do not have to apply for these rebates, but you must file a 2007 federal tax return.
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2008 Tax Rebates
NOTE: For those who are eligible to receive a tax rebate and filed a tax return by April 15th, visit the Internal Revenue Service web site to see a payment schedule as to when the rebate checks are being mailed out or direct deposited.
NOTE: Glossary words are highlighted. Click on any glossary word to see its definition.
What are 2008 tax rebates?
Because of a growing weakness in the American economy and concerns about a recession, the U.S. Congress recently passed, and President Bush has signed, legislation intended to stimulate the economy. The effects of this $152 billion economic stimulus package will not be seen for several months, but the government hopes that the elements of this legislative bill will encourage businesses, and especially individuals, to spend money in 2008 so as to improve the economy.
The legislation, as it applies to individuals, is focused on providing tax rebates to persons who filed federal (U.S. government) income tax returns in 2007. It is not necessary to have actually paid taxes in 2007 in order to receive a tax rebate in 2008, but it is a requirement to have filed a 2007 federal tax return.
Am I eligible?
Tax filers who are eligible for a full rebate from the federal government include:
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Individuals (i.e., if your tax filing status is anything but "married filing jointly"):
- Individuals with adjusted gross income of up to $75,000 and who paid federal income tax
- Individuals who filed a tax return but who paid no income tax, provided they had at least $3,000 in qualifying income in 2007
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Couples (i.e., if your tax filing status is "married filing jointly"):
- Couples with joint adjusted gross income up to $150,000 who paid federal income tax
- Couples who filed a tax return but who paid no income tax, provided they had at least $3,000 total in joint qualifying income in 2007
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Seniors and disabled military veterans:
- Seniors with at least $3,000 in social security income in 2007
- Military veterans receiving disability payments in 2007
Tax filers who are eligible for a partial rebate include:
- Individuals with incomes from $75,000 to $87,000 who paid federal income tax
- Couples with joint income from $150,000 to $174,000 who paid federal income tax
Note: "Qualifying income," for purposes of the 2008 tax rebates includes income from the following sources in 2007: earned income, social security income, Railroad Retirement benefits, veternan's disability compensation, and pension or survivors' benefits received from the Department of Veterans Affairs. However, Supplemental Security Income (SSI) does not count as qualifying income for the 2008 tax rebate.
According to the IRS, you will not receive a tax rebate if any of the following apply to you:
- You did not (do not) file a 2007 federal tax return.
- You did not pay taxes in 2007 and your qualifying income is less than $3,000.
- You can be claimed as a dependent on someone else's tax return (e.g. a student who can be claimed on a parent's return).
- You do not have a social security number.
- You are a nonresident alien.
- In 2007 you filed Form 1040NR, Form 1040NR-EZ, Form 1040PR, or Form 1040SS.
How much will I get?
For those who are eligible to receive a rebate (see above), the actual amount you can expect to receive is simple for some people and more complicated for others. This is because the total rebate amount can consist of one, two, or three components, depending upon your situation.
The three components and how they add up are as follows:
Total Rebate = 1) "Individual" rebate +
2) Rebate for qualifying children (if applicable) -
3) Phase out reduction (if applicable).
Said in words: "Your total rebate is equal to your individual rebate amount plus your qualifying child reb
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