Tax Rebate: Married file jointly or separately

I have a question on the tax rebate announced and the tax filing status of 'Married filing jointly' versus 'Married filing separately'.

The rebate says:
* $600 for individuals upto $75,000
* $1200 for couples.

My scenario is:
For Married filing Jointly AGI: $175,000 implies no rebate.

Married filing separately:
First person: $100,000 implies no rebate
Second person: $75,000 implies $600 in rebates.
implies we get $600.


I do not see any major difference in total taxes while filing in either category. However if I file separately, there is a $600 tax rebate.

Is the above correct regarding the tax rebates? Or am I missing something?

Thanks..
sudhir

Here is a link to the IRS website that discusses various sceinarios of MFS.

Look for the best situation described that fits your position:

http://www.irs.gov/newsroom/article/0,,id=179642,00.html

I have a question regarding the payment of the rebates. Supposedly, if you receive a refund by electronic deposit, you will receive you rebate quicker. However, what if you owe taxes, and cannot set up direct deposit. How can you speed up the rebate process?

Billydet,

Here are some Qs & As I copied from the IRS that address your question:


Q. Can I have my Stimulus Payment direct deposited?

A. Stimulus Payments will be direct deposited for taxpayers who select that option when filing their 2007 tax returns. Taxpayers who already filed and requested direct deposit won't need to do anything else to receive the Stimulus Payment. Taxpayers who did not request Direct Deposit for their 2007 refund will receive a paper check by mail. The IRS reminds taxpayers who haven't filed their 2007 returns yet that Direct Deposit is the fastest way to get both regular refunds and Stimulus Payments.

Q. If I'm not expecting a refund, should I still fill out the direct deposit line on my return so I can get my Stimulus Payment direct deposited?

A. Yes. Even if you aren't due a refund on your tax return, filling out the bank routing information will allow for your Stimulus Payment to be direct deposited.

Q. I chose direct debit to pay my tax bill. Will my Stimulus Payment be direct deposited to the same account?

A. No, the account information used for an incoming Direct Debit payment to the IRS cannot be used as the account information for the Direct Deposit of the stimulus payment. People who choose Direct Debit to pay a balance due will receive their stimulus payments by paper check through the mail. [Updated 3/3/08]

Q. I plan to choose direct debit to pay my tax bill. I know my economic Stimulus Payment will not automatically be direct deposited based upon the Direct Debit information I've provided to pay my tax bill, but can I also enter Direct Deposit information to receive my Stimulus Payment by Direct Deposit?

A. Some tax preparation software will allow this, some will not. You will have to make this determination based on your own review of the tax preparation software you use. If the tax software allows you to enter both Direct Debit (Electronic Funds Withdrawal), as well as Direct Deposit information, doing so will allow your economic stimulus payment to be Direct Deposited. [New 3/20/08]

Q. Will the IRS allow me to provide it with direct deposit information, if I didn’t include that information on my original tax return?

A. Depending on the timing, you may be to call the IRS to stop a direct deposit. But you cannot correct direct deposit information or request a direct deposit after a return has been filed. [New 4/14/08]

I have a question, i'm 19 and filled my first tax form this year and received the refund via direct deposit. my agi is about $2,000 and i was claimed by my parents under their tax return. Do i get a rebate, or does it go to them?

It goes to them.

Nwoww,

I believe Puck has forgotten some of the requirements for the "stimulus rebate".

You did not have sufficient income to qualify.
And your age put you over the limit to qualify on your parents return. You must have been under age 17 on December 31, 2007.

Here are 2 questions cut and pasted from the IRS website on eligibility:

Q. How do I find out if I am eligible?

A. The easiest way to find out is to use the Economic Stimulus Payment Calculator. Most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57 plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.

Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans’ payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.

Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment.


Q. My child just turned 17 in December 2007. Do I still get the extra child payment?

A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment.

End of IRS stuff....

After earning more than $3,000 in 2008, and filing your 2008 tax return, claim your self as a dependent, you may qualify for the $600 refundable tax credit.

Here is another cut and paste from the IRS:
Q. I don’t qualify for a stimulus payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?

A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.

Here is a link to the long list of IRS Q&A: http://www.irs.gov/newsroom/article/0,,id=181972,00.html

Here is a calculator to estimate your Stimulus Rebate: http://www.irs.gov/app/espc/