Stimulus Tax Rebate Top 6 FAQ

Trying to help addressing all questions about the stimulus tax rebate.

1. It is officially signed into law so there are no more questions about that.

2. The rebate is based on your net tax. If you are wondering what that is and where to find it, well you came to the right place, since I am about to explain it all. To come to your net tax you must first subtract all your deductions and exemptions from your total income. This will leave you with your taxable income. Then figure your tax using either the tax table or through the formula provided by the IRS. That number plus any alternative minimum tax you have will equal your net tax. Your net tax is before any credits are applied such as the child tax credit or education credits. Those credits can reduce your net tax by thousands. Your net tax can be found on the 1040 line 46, 1040A line 28, or 1040EZ line 10.

3. So now you have your net tax figure. If you are single, and your net tax is less than $300 and your income is more than $3,000 in 2007 then you will get the minimum from the rebate which is $300. If your net tax is higher than $600 than you will get the maximum rebate of $600. If your net tax is higher than $300 but less than $600, then your rebate becomes the size of your net tax. Same general rules apply for couples. Couples with a net tax of less than $300, and making more than $3,000 in the year will get the minimum back for couple in the amount of $600. If the couple’s net tax is more than $1,200 then they will get the max rebate of $1,200. Any net tax amount between $600 and $1,200 will become the amount of the rebate.

4. Individuals and couples with dependents under the age of 17 are entitled to an extra $300 per qualifying child. This will excludes any dependent that is not a qualifying child of the tax payer and those qualifying children that are over the age of 17. So, anyone with dependent parents are out of luck on this bonus. Also anyone that can be claimed as a dependent on there 2007 tax return is not included in the rebate regardless if they made more than $3,000 or not.

5. The IRS has to process all 2007 tax returns before they can issue checks for this rebate. After the tax season ending on April 15th, the IRS plans to start cutting check by mid May time.

6. This money is a free bonus with nothing hidden. You will not have to pay income tax on it, and it will not be repaid with your 2008 return. It is truly free money for taxpayers.