Tax Rebate Checks to be Mailed in May

Tax rebate checks will be mailed in May, according to Treasury Secretary Henry Paulson.

Just a day after I criticized the rush to sign an economic stimulus plan, the House of Representatives voted 380-34 in favor a Senate version of the economic stimulus package. The bill goes to the President today and the White House has indicated that President Bush will sign it.

CNN is reporting that the checks “are an advance on next year’s refunds, and most, if not all of the money, will be deducted from taxpayers’ refunds in 12 months’ time.” No other news service is reporting similar news – which is a departure from the earlier plan. My suspicion is that CNN is in error, but I will try to confirm that.

Seniors and disabled veterans, who were previously excluded from the plan, are included in the final bill and will receive checks of $300. Individual taxpayers would receive $600 and couples would receive $1,200. There is an additional amount of $300 per child with no cap.

Individuals making up to $75,000 a year and couples earning up to $150,000 would get the full rebate, with those making more than that or too little to owe taxes getting smaller checks.

The bill would also temporarily raise the limit on Federal Housing Administration loans and the cap on loans that Fannie Mae and Freddie Mac can buy to $729,750.

Additionally, McConnell got his way – included is language designed to specifically prevent illegal immigrants from receiving checks.

Checks will be mailed in May and will be based on your 2007 return, as filed by April 15, 2007. No word yet on what filing an extension will do – check back for more details!

** Addendum: It has subsequently been confirmed that the rebate will NOT be a credit against your 2008 tax return. CNN’s comments were in error.

Comments

  1. Carol

    As I understand it, the “rebate” is actually two-part. (1) We get a credit on our 2008 taxes in the amounts listed, based on our 2008 income. (2) We actually receive that credit NOW, based on our 2007 income.

    When we file taxes for 2008, we will mark the check received. If our 2007 earnings and 2008 earnings qualify for the same rebate check, then nothing changes. We have the additional credit marked on our taxes, but it has already been paid to us and will not be included in our 2008 refund.

    If our 2008 earnings qualify us for MORE money, we will receive the difference at that time.

    If our 2008 earnings qualify us for LESS money, nothing happens. We keep the rebate we received based on 2007 and do not pay back the difference.

    Bear in mind that this understanding is taken merely from comments made on another blog post. Add salt as needed. ;)

  2. Audrey

    What about college students who make more than $3300 but are claimed as dependents on their parent’s taxes? Will they get a refund?

  3. Lacie

    Ok.. So.. A single mom.. Who made 8700 on 2007 tax… With one kid, head of household I am hoping I will get the 600 and 300 for a kid… Unless I am just.. not understanding it correctly.. Any help?

  4. Bryce

    So if a child or children will be joining a family in 2008, that child or children won’t be included in the check that comes in May, but they will offer tax benefits above what they would have otherwise, or is this whole thing just about getting people their 2008 rebates 9-12 months early? This is the first mention I’ve heard that it would be applied against 2008 taxes returns, but I believe that is how the last one worked, not being a filer at that point.

  5. Jennifer Garner

    An answer to the college student claimed by her parents…no, you won’t get the rebate. Your parents will if they qualify. Don’t worry, some day you will grow up and have children of your own. They are great when it comes to tax time!!! I have five!

  6. Sara

    I think it is rather sad they don’t have a higher cap for head of household and single parents. It seems they left the thought of single parents out of the picture.

  7. Darla B

    We have full custody of my step children, their mom has standard visitation only, the divorce decree states that she claims the children on odd filing years and us on the even years, so, my question is, does that mean that she will get the tax rebate for the kids, even though we are the ones that have full custody of them?

  8. Bales

    I think it is sad when women want men to pay child support and alimony but when the child moves in with the father the mother wants odd even tax filings years. I think that is bogus and crap.I think who ever has custody needs to claim the child and for those women out there who do not want to pay child support then do not have children. Children are not meant for tax deductions or to bring money in the house but they are blessings.

  9. george

    how will they determine how the chceks go out by ssn or by last names

  10. Lori

    “An answer to the college student claimed by her parents…no, you won’t get the rebate. Your parents will if they qualify.”

    ONLY if the college student is under the age of 17! Parents can only collect for dependents under the age of 17. Wage earning college students have been completely FORGOTTEN in this rebate plan.

  11. Darlene

    I’ve worked two jobs most of my adult life as do most people. I waited two years to be qualified for SSDI. I had no income for those two years.
    Last October 2007 I received my first SSDI check. I am 58 years old and cannot work anymore. My question is “Will I be getting a check along with the taxpayers, elderly and veterans?”

  12. Ta

    I don’t know what our situation will be. First of all we are losing are butts on a house we had to leave when we relocated for better jobs. So upon this relocation we needed money for the move. My husband had to draw out his retirement. We got taxed nearly 10 thousand dollars, and now we still have to pay taxes of 3 thousand back this year. We are so screwed and probably won’t get anything back at all, since we have to pay. Talk about crummy. This happens to so many of us and “they” can’t figure out what is wrong with our ecomomy. They tax us to death and then say ok…..we might let you have some of “your” money back. Yikes.

  13. theresa

    I’m and disabled since i was little and i’m 26 dont pay for tax what will i get $300?—Do you know what i think i think for a couple would be $2000 single and Seniors and disabled would get $1500 and kids would be $600 and we dont have to pay back becouse we pay ALOT in Tax..I mean 4real they say O we need to spend some money Ya ok with $300 or $1200 thats not going to get us anywhere. Ya ok people say where do they get the money!! Are we saking for money from other countries.. HELLO money dose fall of the tree’s paper you dumb dumb….Give me the machens and i’ll make everybody family 1 million dollar then lets see if the business..

  14. theresa

    I’m and disabled since i was little and i’m 26 dont pay for tax what will i get $300?—Do you know what i think i think for a couple would be $2000 single and Seniors and disabled would get $1500 and kids would be $600 and we dont have to pay back becouse we pay ALOT in Tax..I mean 4real they say O we need to spend some money Ya ok with $300 or $1200 thats not going to get us anywhere. Ya ok people say where do they get the money!! Are we saking for money from other countries.. HELLO money dose fall of the tree’s paper you dumb dumb….Give me the machens and i’ll make everybody family 1 million dollar then lets see if the business grow…

  15. theresa

    Forgot NO TAX REBATE for the Rich people they make anough money just to have them sit on there buns for 20yrs

  16. theresa

    One more thing I also think people that are disabled should file there tax forms every yr to becouse we do pay tax also like-atm,light bill,car payment,banks fee’s, cant count food unless you save your store receipt and that will work to, and anything els that will work, i bet they never thought of that.. being that the tax that we pay would be so low like food store but its a nonfood 6.75% the taxt is $.43 we should file for them and get it back, it depends on how much money we spend we might spend alot of money to were when tax comes around just say i’ll get back $1200 could be more or less

  17. Teresa

    I am not excited about the rebate checks!! Where is the money coming from??? Who will have to pay it back??? I believe that would be us as tax payers! They will raise our tax to recoup this money!!

  18. Melanie

    So, if your college student is over 17 years old the parents won’t get a rebate either? That stinks if that is true because we still have to pay tuition, living expenses and books etc….

  19. marisa

    why in hell do college students not get included in this? we are the ones who blow all our money trying to make it through day to day! the poorest people of anyone, and we get screwed?! that’s complete bs if you ask me. i wish i had known this earlier, because i have been looking forward to at least part of it. now even my PARENTS don’t get anything for me either!!!! where the hell do i stand as an american!!!!!!! i pay my own damn taxes and they screwed me this year and i had to pay them all back becuase someone else messed up!!!!!!! our goverment is pathetic, and ridiculously discriminating against their own! do you know how many college students there are in the United states?!?!?! A good way for them to try and save some god damn money while not taking my generation into consideration. this is complete bullshit.

  20. kathy

    Haven’t seen any check to date/ 5/28/08.

  21. Pingback: Ask the taxgirl: Stimulus Checks and 2008 Returns | taxgirl

  22. Pingback: Ask the taxgirl: Rebate Recovery Credit

Leave a Comment