Discussion:Tax Rebate - stay at home mom; child tax credit
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Discussion Forum Index --> Tax Questions --> Tax Rebate - stay at home mom; child tax credit
| 9 February 2008 | |
| I have read all I can find about this Tax Rebate but a few things are still not well communicated.
Husband and wife with 3 children. Husband has $40,000 in income and stay at home mom less than $3,000 (file MFJ). Three children. Their income tax comes to about $1,500 but due to the $3,000 child tax credit tax they have no actual tax liability - get all of their withholding back and as I remember also the unused part of their child tax credit. What will their rebate be? 1. Max of $600 + $600 + $900 (3x300) = $2,100 2. If wife doesn't get $600 because she has less than $3,000 in earnings then $600 + $900 (3x300) = $1,500 3. Or perhaps -0- as they have no actual tax liability. 4. Something else. I read HR 5140 and it would appear that the couple filing a MFJ return would be the "eligible individual" so it should not matter if one spouse earns less than $3,000 and they would get $1,200 so long as there was at least $3,000 ($6,000 joint?) and the joint net income tax liability is at least $1,200. Net income tax liability appears to be before credits allowed by Sec 24 which I think is the child tax credit section. This tax rebate is based on 2008 income - you may have situations where the eligibility may not be apparent based on the 2007 return. My recollection of the 2001-2002 rebate was that this was reconciled on the 2002 return. Also, my recollection of the 2001-2002 rebate was that even if the 2002 return numbers did not qualify that the money sent in 2001 did not have to be returned. | |
| 2008-02-09 | |
| This is copied from Yahoo "Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income - which can include Social Security and disability payments - will get $300 rebates per person or $600 per couple." "Some people are normally not required to file a return. To get the rebate, however, they have to file a federal tax return."
This makes it looks like if you file a tax return with $3000.00 of social security you could get a rebate. That can't be right. ' | |
| 9 February 2008 | |
| Retirees with VA or SS benefits can claim the rebate -- even if the benefits are completely nontaxable. | |
| 2008-02-10 | |
| But surely they will not have to file a tax return to get the rebate?? | |
| 10 February 2008 | |
| How else will the govt. know?
The govt. has done a very poor job so far of explaining the details. Hopefully this will soon be remedied. I have much contempt for those bastards in Congress that for the most part have little idea what they are doing when it comes to tax law. That includes my rep, Pat Tiberi [R-OH], who is on the Ways and Means Committee. He is so clueless he couldn't get a job at Liberty Tax Service. | |
| 10 February 2008 | |
| Congress is not responsible for delivering the rebate checks. This will be up to the Treasury Department. | |
| 12 February 2008 | |
| So what does the responsibility for delivery of the rebate checks have to do with a Congress that probably doesn't understand the details of what they legislated. | |
| 12 February 2008 | |
| check the IRS website they just sent out a bulletin addressing who has to file 2007 to get the rebate. There is a income limit on the rebate also. If the tax return is extended, the rebate will be delayed until the 2007 return is filed.
I wouldn't be figuring all this out right now...too busy at tax time. I tell my clients to be patient and they will get what the IRS decides they are entitled to.taxea | |
