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Male: What is the 2007 tax rebate?
Art: If you are preparing your 2007 return, this is part of the economic stimulus package. You are entitled to its, called a rebate but it really isn’t, what it is, is an advance payment of a credit on your 2008 tax return. It’s gonna be based on your ’07 filing, if you’re single and your adjusted gross income is under 75,000 on a joint return, if it’s under a 150,000, you will be entitled to an economic stimulus payment that the IRS is going to begin sending out in May of 2008, if you file your tax return before that. A couple of things to remember here, the rebate checks cannot be issued by IRS after December 31st, so the longer you hang around and wait to file your 2007 return, is just gonna delay getting any particular stimulus rebate payment. Now if you don’t file in, or you don’t qualify in 2007, so you file your ’07 return, you determine you’re not entitled based on your ’07 return to get a rebate check, doesn’t mean you’re out of the game. Because remember what I said, it’s an advance payment against ’08, based on ’07. So I still might be entitled to a credit on my ’08 return. So if my’07 income is high and my ’08 income is low, I still might get a credit equivalent to the rebate check against my ’08 tax return. So the reason that this come up as a separate question is don’t be dismayed if based on your ’07 filing, you may not qualify. You may still qualify based on your ’08 filing for the credit, not necessarily getting a check from the government. This is also important as to filing status, because if I file jointly and the joint return income is over a hundred fifty thousand dollars, then I’m out of the rebate game. But, if I file separately with my spouse, and let’s say her income was 75,000, my income was 60, or 50 or 80,000, I might try to combine or see whether filing separately will qualify us for rebate checks. Because I might not get it putting the income together, but I may get it, by filing two separate returns.
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