Tax Rebate

[Gretel]

I am a little confused now. Tax Program tells me clients get $600, I think they should be getting $800 because this is their tax liability before credits. Who is right?

[Koss]

The computer can't be wrong

For a single taxpayer who qualifies, the amount of the "advance refund check" is:

the lesser of their tax liability or $600
but in any event not less than $300

Put another way, this thing has a $300 floor and a $600 ceiling.

it is indeed their tax liability, but it can't be less than $300 and it can't be more than $600

[Gene V]

Put another way, this thing has a $300 floor and a $600 ceiling.

it is indeed their tax liability, but it can't be less than $300 and it can't be more than $600
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Burton M. Koss

It can be less than $300, due to reduction in high adjusted gross income.

[BP.]

I think they should be getting $800 because this is their tax liability before credits.

"Tax liability before credits" isn't the figure to use to determine stimulus payments. You can only use tax liability before CTC; other credits must be subtracted to arrive at "net income tax liability." Try the worksheet TTB posted.

[Jesse]

I am a little confused now. Tax Program tells me clients get $600, I think they should be getting $800 because this is their tax liability before credits. Who is right?

I don't have an answer, just another question. Are the rebates based on tax liability before credits? or after?

I calculated a rebate that had a tax liability of $354 B4 credits and $285 after Tax Savers Credit and it calculated $300 rebate which I thought to be correct but did not do any research.

Client is just upset because would like $600 so I don't think the extra $54 will bring much joy, but I can see her comming in asking if I made a mistake and indeed she still should receive more.

BP posted answer b4 my question.

[BP.]

I can see her comming in asking if I made a mistake and indeed she still should receive more.

BP posted answer b4 my question.

You're welcome, Jesse! Clients can get a bit upset about getting less than the full rebate amount. If they get less, I do the worksheet as proof for them, plus I keep a copy for next year. It's gonna save some time in tracking down the advance payment for those who got less than the full amount.

[Gretel]

Sorry, should have said clearly that this is a couple with children. I am fine on the calculation for the children and didn't want to throw more into this thread than necessary. They get CTC and Dependent Care Credit. How do I get to the worksheet?

[BP.]

How do I get to the worksheet?

http://www.thetaxbook.com/updates/2007/2-23-2008_Update/stimulus_worksheet.pdf

From the Updates link above.

[cbsb105]

Tax rebate

Go the IRS website,they have a calulator to figure the amount.

CB