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.