Ask the taxgirl: Taxable Income and Rebates
Taxpayer asks:
Since whoever has earning in excess of $87K of AGI for singles ($174K married), they don’t qualify for rebate check. Here is the question: 2007 AGI? or 2006 AGI? (in other words, in my situation, my 2006 AGI is way less than 87K, and 2007 AGI is way more than 87$)? :) so do I get it or not?
Taxgirl says:
Eligibility for tax rebates will be based on 2007 income. It sounds like, from your facts, that you will not qualify.
Eligibility will phase out for individual taxpayers with AGI over $75,000 and married taxpayers who file a joint return with AGI over $150,000. The combined payment is reduced by 5% of the income above the AGI thresholds.
If your AGI as an individual is $85,000, for example, your rebate would be $100. This is because your AGI is $10,000 over the phase out amount. $10,000 multiplied by 5% is $500 - your $600 rebate is reduced by $500 resulting in $100.
If you have children, be sure to add in the $300 tax credit before adjusting for the phase out.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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6 opinions for Ask the taxgirl: Taxable Income and Rebates
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Rudolf
Apr 20, 2008 at 12:03 am
Is the rebate taxable as 2008 income?
spencer king
Apr 26, 2008 at 2:39 pm
Is the rebate taxable as 2008 income?
Kelly
Apr 27, 2008 at 7:36 am
No, it’s reportable but not taxable, according to reports (I haven’t seen the new 1040 for 2008 so I am not sure where you would include it).
karin
May 2, 2008 at 12:00 pm
Hi, I am a waitress, I have a question regaurding my tipped income. I have to tip out 30%-40% of my tips earned to a busboy, bartender and food runner, all of which don’t claim that as their income. Why am I claiming more than I am walking with daily. My boss is unwilling to answer this question. I feel it is very unfair I am sure this is not right to pay more in taxes than I am making. Please Help Me! Thank You
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