Tax Rebates
The Information You Need to Know From
The Tax Institute at H&R Block
The Last of the Scheduled Tax Rebate Checks Are On Their Way for Those Whose Returns Were Processed By April 15, 2008!The Tax Institute at H&R Block
The last of the scheduled tax rebate payment checks hit the mail on or before July 11, for federal returns processed by the IRS by April 15. The July 11 distribution covers taxpayers with Social Security Numbers ending in digits 88 through 99.
What If I Didn't File by April 15?
If you received an extension to file until October 15, 2008 you can still receive a tax rebate payment this year. The IRS has stated that for taxpayers with extensions, tax rebate payments should be received approximately two weeks following receipt of your federal refund.
Even if you are not required to file, you should consider filing a 2007 federal return - and it's not too late. People who paid no income taxes but had at least $3,000 of qualifying income, including Social Security, Tier I railroad retirement and veterans disability or survivors benefits, can be eligible to receive a $300 tax rebate payment. Statistics recently released by the IRS indicate about 74 percent of eligible seniors and veterans are accounted for in the tax rebate payments that were distributed during the months of April, May, June and July, but approximately 5.2 million potential recipients remain who have not filed a 2007 return.
Turn to Digits for All the Information You Need to Know For important information about tax rebates and how they affect you, qualifications to receive tax rebates, and more, stay tuned to Digits from H&R Block, America's tax leader since 1955. You may also find the "Frequently Asked Questions" below helpful, as well as our tax rebate blogs from tax researchers at The Tax Institute at H&R Block - feel free to join the conversation!
Frequently Asked Questions
What is A Tax Rebate & How Will It Affect My 2008 Return?
The tax rebate is an advance payment based on a tax benefit that you will claim on your 2008 tax return.
No and no. The tax rebate is an ADVANCE CREDIT for tax year 2008 and will be calculated on your 2008 return. If you're due a higher payment, you'll get the remainder next year when you file. If you received a higher rebate (payment) than you should have, you DO NOT have to pay it back.
Yes, but not in 2008. If you qualify for the rebate, you can receive the funds in 2009 based on your 2008 tax return. Congress estimates 10 percent of the rebate funds will go out in 2009.
Earlier this year there was increased pressure on Washington to do something to prevent the economy from falling into a steep recession. One possible way to help a lagging economy, at least temporarily, is to get money into consumers' hands and hope they'll spend it to stimulate the economy.
For those who qualify, the plan calls for tax rebates (payments) worth up to $600 for individuals ($1,200 for couples filing joint returns). For taxpayers who qualify for the base amount, an additional rebate (payment) of $300 per qualifying child is available for families.
The tax rebate is reduced by five percent for each $1,000 of AGI over $75,000 for individuals and $150,000 for joint returns. For taxpayers without children, the maximum payment is fully phased out at $87,000 and at $174,000 for joint filers. In other words, if you're an individual with no eligible children and you have an AGI of $87,000 and above or a joint filer with no children with an AGI of $174,000 and above, you are not eligible for the tax rebate.
Individuals who paid no income taxes but earned at least $3,000, or received at least $3,000 in Social Security, Tier I railroad retirement, or veterans disability or survivor benefits in 2007 are eligible for a $300 rebate (payment) if they file a tax return. In other words, to receive the $300 tax rebate in 2008, eligible taxpayers MUST file a 2007 tax return and you have until Oct. 15 to file and receive the rebate in 2008.
The tax rebate is reduced by five percent for each $1,000 of AGI over $75,000 for individuals and $150,000 for joint returns. For taxpayers without children, the maximum payment is fully phased out at $87,000 and at $174,000 for joint filers. In other words, if you're an individual with no eligible children and you have an AGI of $87,000 and above or a joint filer with no children with an AGI of $174,000 and above, you are not eligible for the tax rebate.
Individuals who paid no income taxes but earned at least $3,000, or received at least $3,000 in Social Security, Tier I railroad retirement, or veterans disability or survivor benefits in 2007 are eligible for a $300 rebate (payment) if they file a tax return. In other words, to receive the $300 tax rebate in 2008, eligible taxpayers MUST file a 2007 tax return and you have until Oct. 15 to file and receive the rebate in 2008.
To qualify for the additional $300 per child, the child must be a qualifying child for purposes of the Child Tax Credit AND generally must have a valid Social Security Number. (There are exceptions to the SSN requirement for certain members of the Armed Forces. See Question 9.) Generally, the child needs to be under the age of 17 and claimed as a dependent by the taxpayer.
Parent 1 claims the child on his or her return in 2007 and receives a rebate based on the 2007 return. Parent 2 can qualify for the child-related credit on his or her 2008 return because he or she is claiming the child that year. Parent 1 is not required to repay the child-related rebate he or she received, and Parent 2 may claim the child-related credit on his or her return because he or she did not receive a rebate related to that child.
No. Individuals who can be claimed as dependents on someone else's return are not eligible for the rebate. This is true even if the taxpayer elects not to claim the individual as a dependent.
To be eligible for the tax rebate, a taxpayer MUST meet the tax liability or qualifying income test, not be phased out of the credit based on Adjusted Gross Income (AGI), and have a valid Social Security Number. Anyone who does not have a valid Social Security Number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is NOT eligible for this rebate (payment).
Note: Both individuals listed on a Married Filing Jointly (MFJ) return MUST have valid Social Security Numbers to qualify for a rebate (payment).
Note for Military: The requirement to have a valid SSN does not apply to returns filed where at least one taxpayer is assigned to military active duty at any time during the year.
Note: Both individuals listed on a Married Filing Jointly (MFJ) return MUST have valid Social Security Numbers to qualify for a rebate (payment).
Note for Military: The requirement to have a valid SSN does not apply to returns filed where at least one taxpayer is assigned to military active duty at any time during the year.
Individuals must be a full-year U.S. citizen or resident and file Form 1040, 1040A or 1040EZ. Individuals who file Form 1040NR, 1040PR or 1040SS are not eligible for the rebate. These returns are normally filed by nonresident aliens, residents of Puerto Rico, and residents of the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands (CNMI).
Note: Residents of U.S. possessions will be receiving their rebates directly from the possessions.
Note: Residents of U.S. possessions will be receiving their rebates directly from the possessions.
No. Taxpayers must file by Oct. 15, 2008, however, to receive a tax rebate this year. Otherwise eligible taxpayers will claim a credit based on their 2008 return when they file beginning in Jan. 2009.
Tax returns filed close to the April 15, 2008 deadline may require additional time to process and compute a tax rebate payment amount and will not be issued in accordance with the April 28 through July 11 schedule. People who file after April 15 and receive a tax refund can expect to receive their tax rebate payment approximately two weeks after receiving their tax refunds, but not before the date they would have received their rebate if the return had been processed by April 15.
The IRS determines eligibility, computes the amount and issues the tax rebate payment. However, the tax rebate (payment) is subject to offset. This means that the IRS may have captured all or part of the rebate it if you owe unpaid liabilities such as back taxes, student loans, or child support.
However, if the tax rebate you received is less than the credit you qualify for based on your 2008 return and there are no offsets, you will be able to claim the difference when you file the 2008 return.
However, if the tax rebate you received is less than the credit you qualify for based on your 2008 return and there are no offsets, you will be able to claim the difference when you file the 2008 return.
Yes, but not in 2008, unless you file a 2007 return before Oct. 15.
Statistics recently released by the IRS indicate about 74 percent of eligible seniors and veterans have received their tax rebate payments that were distributed during the months of May, June and July, but approximately 5.2 million potential recipients remain who have not filed a 2007 return.
Statistics recently released by the IRS indicate about 74 percent of eligible seniors and veterans have received their tax rebate payments that were distributed during the months of May, June and July, but approximately 5.2 million potential recipients remain who have not filed a 2007 return.
If you qualified for a tax rebate on the original return, adding these benefits on an amended tax return will not increase your tax rebate. However, if you did not qualify for the tax rebate on the original return, you should amend to establish eligibility for the tax rebate (payment). Use IRS Form 1040X to amend a tax return in order to qualify for the tax rebate.
Seek a well-trained and experienced tax professional with the expertise to know for sure and who has the ability to stand behind you if there are any questions about your tax situation.
At H&R Block, we've been preparing taxes since 1955. In fact, one out of seven returns is prepared by us. The typical H&R Block client is served by a tax professional with 8 years experience and 250 hours of training.
Cost is an equally important factor to consider. H&R Block is among the most affordable choices for Americans who want their stimulus payment but who would otherwise not have to file a return.
H&R Block TaxCut Online programs start as low as $14.95 and TaxCut software starts at $19.95. H&R Block retail offices are offering discounted professional tax preparation for those who qualify for a rebate but would otherwise not be required to file.
Free federal tax preparation for taxpayers earning $54,000 or less is also available through a partnership between the IRS and the Free File Alliance, a group of private sector software companies. H&R Block has been an FFA member since its inception.
At H&R Block, we've been preparing taxes since 1955. In fact, one out of seven returns is prepared by us. The typical H&R Block client is served by a tax professional with 8 years experience and 250 hours of training.
Cost is an equally important factor to consider. H&R Block is among the most affordable choices for Americans who want their stimulus payment but who would otherwise not have to file a return.
H&R Block TaxCut Online programs start as low as $14.95 and TaxCut software starts at $19.95. H&R Block retail offices are offering discounted professional tax preparation for those who qualify for a rebate but would otherwise not be required to file.
Free federal tax preparation for taxpayers earning $54,000 or less is also available through a partnership between the IRS and the Free File Alliance, a group of private sector software companies. H&R Block has been an FFA member since its inception.
Late Breaking Tax Rebate News
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If You’re Retired Or A Disabled Vet, The IRS Wants To Give You Cash
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