Dunnan on Dollars

  Personal Finance Tips from Nancy Dunnan

Where's The Check?
Running Down Your Tax Rebate

March 28, 2008 - The economic stimulus package recently passed by Congress could put some money in your pocket in the form of a tax rebate.

Most single taxpayers will receive $600, while married couples will scoop up $1,200. Those who have dependent children under the age of 17 are eligible for an extra $300 per child.

To make sure you get your rebate as quickly as possible, file your federal income tax return by April 15 -- the rebate is based on your 2007 income. If you file for an extension, you will still receive a rebate but it will be delayed.

What if you didn't earn enough in 2007 to file a return? You may be in luck. If you collected a minimum of $3,000 last year from Social Security and/or veteran benefits, you may be entitled to $300. And you could also be in line to get $300 per any dependent child you have, provided they are under age 17.

If you meet these qualifications, you should file a return anyway so the IRS will know where to find you. There's information on how to do this on the IRS Web site at: http://www.irs.gov/.

No Taxpayer Left Behind?

Although the rebate is wide sweeping, not everyone will get a check. Those who earn too much will be left behind.

o Single taxpayers with adjusted gross income over $87,000 and couples with AGI over $174,000 will not be receiving rebates.

o College students who were declared as dependents on someone else's 2007 return are also left behind.

o Debtors. If you owe back taxes, the IRS will withhold some or all of your rebate in order to cover your bill.

Note: The rebate technically is a credit against your 2008 tax bill and it will not be treated as taxable income on your 2008 return.

For Further Information: http://www.irs.gov/. (As we went to press, the IRS home page has several links to sections covering all the facts about the rebate.)

- Nancy Dunnan

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If you want to suggest a column topic for Nancy, drop her a line.

Like what Nancy has to say? you might be interested in the new edition of her book:
How To Invest $50 To $5,000: The Small Investor's Step By Step Plan for Low-Risk, High-Value Investing