Answers to ALL Your
Tax Rebate Questions
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Tell 200 million taxpayers that they'll be getting a share of $130 billion in tax rebates and you're sure to bring smiles to a lot of faces. You'll also prompt many quizzical looks ... and an avalanche of questions.
Kiplinger.com has received more than 1,000 questions and comments about the tax rebate program since February. Here are the answers to your most frequently asked questions.
Question 1: Shorted on the Rebate?More From Kiplinger.com:
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Shorted on the Rebate?
Wait a minute. I'm married, filed jointly. My husband has received a $600 rebate check. I thought that we would each receive $600 or $1,200 jointly. Where is the other half of our rebate?
Your payment may be less than the maximum for one of several reasons. If your tax liability for the year was less than $1,200, for example, you wouldn't qualify for the maximum. If your adjusted gross income was more than $150,000, the size of your rebate would have been squeezed.
Next: Shorted on a Rebate Too?More From Kiplinger.com:
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Shorted on a Rebate, Too?
I'm a single mother. I was told the adult of head of household gets $600 and my daughter would get $300. But my letter says I get $300 and my dependent gets $300. What's going on?
The letter should have explained why you got less than the full $600 rebate for single taxpayers. Was your tax liability for 2007 less than $600? Some low-income workers who didn't have a big enough tax bill to qualify for the $600 rebate could qualify for a $300 one.
Next: No Rebate for 18-Year-Olds?More From Kiplinger.com:
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Why No Extra $300 for 18-Year-Olds?
Why was 17 the cutoff for dependents? That makes no sense.
Basically, Congress offered the extra $300 per child for any dependent child who qualifies for the child tax credit. And the cut off for that credit is age 17.
Next: No Rebate for Kids?More From Kiplinger.com:
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350,000 Rebate Checks Didn't Include $300 for Kids
I received my stimulus payment, but it didn't include money for my kids. Does the IRS plan to send me an additional check?
Yes. You're among about 350,000 taxpayers caught up in a snafu that resulted in the extra $300-per-child rebates not being included in their parents' rebate checks. You don't need to do anything to get the money. The IRS says it is identifying affected taxpayers and will send separate checks -- starting in early July -- to cover the shortfall.
Next: Back Taxes/Child Support?More From Kiplinger.com:
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What if I Owe Back Taxes or Back Child Support?
My ex husband owes my son child support and he owes back taxes, too. Will the IRS take his stimulus check to cover his back taxes or will it go to my son?
The IRS can intercept a rebate to cover back taxes, back child support or unpaid student loans. Your question is which debt gets first claim on the dough? No surprise here: The IRS will use the money to cover the tax debt first; only if money is left over will it go toward the child support.
Next: Installment Plan for Taxes?More From Kiplinger.com:
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What if I'm Paying Taxes on the Installment Plan?
I'm paying my 2006 tax bill on the installment plan and have made all my payments on time. Will I get my rebate, or will the IRS seize it and apply it to my tax bill?
Your rebate will go to reduce what you owe. On the bright side, that will reduce the amount of interest and penalties you owe on the tax debt. If your rebate is enough to wipe out the old tax bill, you'll get any leftover amount as a rebate.
Next: Student Loan Debt?More From Kiplinger.com:
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Student Loan Debt and the Tax Rebate
I owe back payments on my student loans. Will the IRS use any rebate to pay that back?
Yes. The IRS can intercept your rebate -- just as it can a tax refund -- and apply it against student loan debt on which you have defaulted.
Next: Back State Taxes?More From Kiplinger.com:
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The Rebate and Back State Taxes
If I owe for state taxes, not federal, will the state intercept my rebate check?
If the state has reported the debt to the IRS then, yes, your rebate can be diverted to cover what you owe state revenuers. If that happens, you should receive a notice from the IRS explaining what happened.
Next: Next Year's Taxes?More From Kiplinger.com:
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The Rebate's Impact on Next Year's Tax Bill
Is this a rebate on 2007 taxes, or an advance on next year's refund like the last tax rebate?
You have a good memory and, like the 2001 rebates, this really ought to be called a "prebate" because it is a prepayment of a special tax credit created for 2008. Because the point is to stimulate the sluggish economy, though, Congress didn't want Americans to have to wait for their money until they file 2008 tax returns next spring.
Next: Late Filing?More From Kiplinger.com:
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Late Filers and the Rebate Schedule
I filed after April 15 and the payment date for my Social Security number has passed. How long will it take for me to get my stimulus payment?
Don't start looking for your check for at least six weeks after you filed your return. The IRS says it will take at least that long to get you your money.
Next: Filed an Extension?More From Kiplinger.com:
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Filing an Extension Affects Timing of the Rebate
We filed for a filing extension. Will we still get a rebate check?
A rebate delayed is not a rebate denied, but the IRS says it will take at least six weeks from the time you actually file your 2007 return to get your rebate check. So if you file at the extension deadline of October 15, you may not get your check until early December.
Next: Social Security BenefitsMore From Kiplinger.com:
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Social Security Benefits and the Rebate
Will Social Security recipients who have their checks deposited via direct deposit receive their rebates on the direct deposit schedule or the mail schedule?
How your Social Security benefits are deposited has no bearing on the payment of the tax rebate. If you completed the direct deposit information on your 2007 tax return (regardless of whether you had a refund coming), your rebate will be direct deposited to the account listed on your tax return.
Next: Refund Anticipation Loans?More From Kiplinger.com:
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Refund Anticipation Loans and the Tax Rebate
I chose direct deposit for my 2007 tax refund but also requested a refund anticipation loan from my preparer. How does that affect my stimulus payment?
Taxpayers who took RALs or agreed to have return preparation fees deducted from their refunds cannot receive their stimulus payments by direct deposit. You'll get a paper check even though your tax refund was deposited directly into your account.
Next: Changing Banks?More From Kiplinger.com:
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How Changing Banks Affects Rebate Direct Deposit
I had my 2007 tax refund direct deposited and have since changed banks. Will my rebate check be sent back to IRS then mailed?
Yes. When the IRS tries to directly deposit your rebate into a closed account, the electronic payment will be rejected. The agency will then convert your rebate to a paper check and mail it to you.
Next: No Refund?More From Kiplinger.com:
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Does No Refund Mean No Rebate?
We didn't receive a refund this year. Instead, we had to pay extra when we filed our 2007 return. Does that matter when we get our tax rebate, or do we even get one?
Whether you owed extra tax or got a refund has no bearing on your qualification for a rebate. Check out our tax rebate calculator to see if you qualify. If you do, the timing of your check will be based on the last two digits of your Social Security number. See the schedule.
Next: Business Loss?More From Kiplinger.com:
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Does a Business Loss Wipe Out a Rebate Claim?
Does a business loss wipe out a rebate claim?
The rebate is based on your net tax liability on your 2007 return. If your business loss wiped out the tax bill all together, you should still receive a rebate of $600 if your wife earned at least $3,000 in wages. Because the rebate is actually a prepayment of a 2008 credit, there's a chance you could qualify for more of the credit when you file next spring.
Next: Social Security Disability?More From Kiplinger.com:
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Social Security Disability and the Tax Rebate
I am on Social Security disability. Do I still get a rebate check?
Yes. Congress came up with special rules for citizens who otherwise would not need to file tax returns so they could be eligible for the rebate. Recipients of Social Security disability benefits can qualify. Find all the details here.
Next: Bankruptcy and the RebateMore From Kiplinger.com:
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Bankruptcy and the Tax Rebate
I heard that if you have filed bankruptcy in 2007, you will not receive a rebate check. Is this true?
No. The tax rebate is based on the information on your 2007 tax return. If you are otherwise eligible for a tax rebate, filing for bankruptcy will not affect that fact.
Next: Retirees and the RebateMore From Kiplinger.com:
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Retirees and the Rebate
Do the same rebate amounts apply to retirees as wage earners?
Your work status doesn't matter. The rebates are based on the information on your 2007 tax return. Whether you are working or retired, you can qualify for the maximum rebate if you owed at least $600 in taxes for 2007 if you filed a single return or $1,200 if you filed a joint return.
Next: IRS E-Mails?More From Kiplinger.com:
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Responding to IRS E-Mails on the Rebate
I got an e-mail from the IRS asking for information so it could directly deposit my rebate into my bank account. Will that speed things up?
No, but it could cost you. This is a phishing scam; the IRS does not send e-mails requesting personal or banking information. This has become so prevalent, however, that the agency has set up a special mailbox and asks taxpayers to forward suspicious e-mails to phishing@irs.gov.
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Recent Comments
Frobert768 03:37:09 PM Jul 29 2008
they should give us a 2 rebate check of gas prices are 600 dollars doesnt go far we need a 2 rebate check
LakeArcher 02:50:39 PM Jun 23 2008
WHEN WILL YOU FOLKS EVER REALIZE ? ? ?
THERE IS NO GOD ? ? ?
ShakenLadySyn 11:51:13 AM Jun 23 2008
So what they are saying is that if your tax amount due was less than a certain amount, you don't qualify for a rebate check?
Umm Yeah Ok 11:45:45 AM Jun 23 2008
Rozner43 11:22:36 AM Jun 23 2008
Got a letter from the IRS on June 13. Was told I should have my check by June 20.
Still no check. Letter also said if I did not have my check by June 20 to wait and contact them in 6 weeks. Just another load of crap from the government, but you had better not be late paying your taxes!
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Same thing happened to me. We were supposed to be one of the first who would have it directly deposited early May. Then we learned that since we PAID turbotax, wed get a check mailed June 20th... ...Still no check.
I wouldnt have such a problem with not getting $1200, if the IRS didnt mail us PROMISES. Its one thing to have a incompetent government... ...and another that makes false promises and lies to its own people.
Chronicdogg 11:34:46 AM Jun 23 2008