Know Your IRS Rebate Checks
IRS rebate check is the hottest topic in the US media and the real facts with grapevine are taking rounds among the people. Latest and the most authenticated information regarding these rebate checks are available on the IRS website. According to the information available there, IRS rebate checks would start flowing in via mail or through direct deposit in your account according to the choice you have made. The process was about to start in latter part of the May 2008 continuing through the whole summer months. The provision for the direct deposit of checks is only available to those people who have already furnished the relevant details while filing their tax returns for the tax year 2007.
One thing is very clear from the above statement and that is your IRS rebate checks would be based on the filing of your tax return for the year 2007. If you have no filed your returns for the year 2007 yet, then you can do so now in order to get yourself enlisted in the queue for the issuance of the IRS rebate check. The senior citizens in the United States are usually not required to file the tax returns but this year in order to receive the IRS rebate check; they are required to file the tax return for the year 2007. There is a lot of confusion prevailing over this matter and the senior citizens concerned should be addressed properly. However, these people are required to file the federal return for getting eligible for the IRS rebate check and the filing of the state return is not necessary for them.
Actually the IRS rebate check is being paid to you as an advance payment against the credit which will be calculated later on when you will file your 2008 tax return. As per the estimates of the concerned officials, the net impact of these IRS rebate checks on your 2008 return will be zero. However, the actual calculation may fetch you additional rebate against your 2008 tax or maybe a reduction in the amount you should have received. Amount of the IRS rebate check start reducing depending on your income during the year 2007 and thus it will cause the variation in the computation of the check amount. People having yearly income more than $75000 per annum in case of individuals and $150,000 in case of couples with some relaxation if you have children is kept as the threshold limit for the eligibility. People having an income over and above this limit will not be considered eligible for the IRS rebate checks.
Many calculators are also available for the computation of the IRS rebate check amount, however it is expected to hover between:
$300 -$600 for Individuals
600-$1,200 for Married filing jointly
Qualifying children generally an additional $300 per child