Tax Credit Or Tax Rebate
February 14th, 2010
Question: Will the tax rebate checks help those with earned income tax credit?
could some one please help me? Will the proposed tax rebate be available to those that have recieved the “earned income tax credit”? I have a family of 4 and we earn less than $45,000 a year. would we still qualify for the tax credit? or are we disqualified?
further explaining: we recieved a refund of over that amount… and it is me and my husband and two kids.
Answer: The credit will not impact your rebate. Your rebate depends on your 2007 taxes and income.
Under the compromise bill passed by the Congress, you would be eligible to receive a rebate of up to $1200 if you paid that much in Federal Income Tax. If you only paid $750 in taxes (less than the $1200 rebate limit), you only get back $350. If you had earned income of at least $3000, you would get at least the minimum rebate of $300. If you qualify for a rebate, you would also get $300 for each dependent child.
While the rebate depends on your 2007 income, it is actually a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers.
It’s like a one time tax cut for 2008, but you get the rebate now instead of waiting to file your 2008 taxes. Because this is an advance payment on your 2008 taxes, your refund next year could be more (or less!) depending on your 2008 income.
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