- Rebates -- Some People Will Get Second Chance to Qualify
Rebates -- Some People Will Get Second Chance To Qualify
Good news. You’re allowed a second chance under the law that created the rebates, also known as economic stimulus payments.
- File a 2007 tax return, but don’t qualify for a rebate, or qualify for less than the full amount.
- Have financial or other life changes in 2008 that would make you eligible for a rebate or a larger rebate.
Most people will get the maximum of $600 each, or $1,200 if married and filing jointly, plus $300 each for every child age 16 or younger.
Some people with low incomes -- and some who receive Social Security and Veterans' pensions -- will get a minimum of $300 per person or $600 per couple.
However, some people will not qualify because their income was either too high or too low. Others won't because they don't have Social Security numbers as required.
The IRS will caclulate the amount of rebates due those who've filed their 2007 tax returns. Most rebates will be sent between early May and mid July.
Those who qualify for a second chance at a rebate will get their money in 2009.
For information about who qualifies, read Tax Rebate Plan.
These changes include increased or decreased income, arrival of a newborn or an adoption in 2008, or change in marital status, among others.
The IRS says you would most likely receive it in 2009, after filing your 2008 taxes.
If you didn’t get a full rebate based on your 2007 tax return, you can use your 2008 income to qualify, when you file your return in 2009.
And even if you get a rebate based on your 2007 return – and your life circumstances during 2008 would make you ineligible for a rebate – you don’t have to give your “overpayment” back. Really!
It’s a bit complicated, but in a nutshell:
The rebate, for most people, is actually an advanced credit on their 2008 taxes. That credit will NOT need to be repaid, be deducted from your 2008 tax refund or be taxed later.
The government is giving the rebate out this year, rather than next, to help stimulate our slowing economy. However, people who missed out or were deemed ineligible in 2008 could qualify in 2009.
The IRS wants people to keep any letters it sends them saying how much their rebate will be. That way, those who hope to qualify for a larger stimulus payment on their 2008 returns will have a record of what they've already received.
Below are several examples of people who could get a second-chance rebate.
If your 2008 income drops below the cutoffs -- rebates are reduced starting at $75,000 of adjusted gross income or AGI for single persons and $150,000 AGI for married couples -- you will likely qualify.
But you will have to wait to get yours until you file your 2008 tax return.
Probably, if you meet all the requirements and file a 2008 tax return in 2009.
Yes, in 2009, assuming you would otherwise qualify.
No. You'll need to wait until 2009 when you file your 2008 tax return.
The instructions for filing a 2008 tax return will include a worksheet to help you determine if you qualify.
