tax rebate

[Questionguy101]

Sorry I think I have asked similar question before. But I am still very confused about the rebate rules.

Situation 1:
A retired couple. Husband has $6,000 of pension income. Wife has no income. No other source of taxable income. No tax paid. How much are they going to receive?

Situation 2:
Married couple. Husband has $31,000 working income. Wife has no income. 3 dependent children. No tax paid. How much are they going to receive?

Situation 3:
A retired couple. Husband received $12,000 of social security benefits. Wife received $7,000 of social security benefits. No tax paid. How much are they going to receive?

Thank you.

[Brian EA]

Situation 1 and 3 should get $600 per couple.
situation2 : husband $600, wife $600 and each child $300-- total $2100

brian

[veritas]

Congress should have named this the

'2007 Tax Preparer Stimulus Debate Program".

[Questionguy101]

Situation 1 and 3 should get $600 per couple.
situation2 : husband $600, wife $600 and each child $300-- total $2100

brian

Thank you for your answer.

For situation 2, they paid no tax. Why would both the husband and wife still get $600 each? Thanks.

[Zee]

Thank you for your answer.

For situation 2, they paid no tax. Why would both the husband and wife still get $600 each? Thanks.

They wouldn't. I think they'd get $300 each x 5 = $1500.

[BOB W]

Do I understand that when a single or married tax return exceeds the $75,000 or $150,000 thresholds the excess is used to discount the rebate at 5% of the excess?

Example> Single with $80,000 would get the $600 rebate lowered by $250.00.
$5,000x.05= $250. Net rebate would be $350.00.

[Zee]

Do I understand that when a single or married tax return exceeds the $75,000 or $150,000 thresholds the excess is used to discount the rebate at 5% of the excess?

Example> Single with $80,000 would get the $600 rebate lowered by $250.00.
$5,000x.05= $250. Net rebate would be $350.00.

Yes, assuming all other conditions are met.

[S T]

Practicing my understanding

On #2, as Zee pointed out,

"individual or married couple filing jointly with at least $3,000 of "qualifying income" may receive a minimum payment of $300 (single) or $600 (joint) even though they have no net income tax liability for 2007.

So $31,000 qualifies for the "income", but no tax liability, that would then be $600 MFJ, and the $300 per dependent X 3, so I am thinking $1,500 also for example #2.

Sandy

[Earl]

rebate

Situation 1 No rebate since pension is not qualifying income.

[Zee]

Situation 1 No rebate since pension is not qualifying income.

That's right! How easy it is to overlook in examples.