I do not think this is correct, and this is the first I have heard of this. As I understand it, this is a straight handout, with no obligation on the future.Kalrog wrote:And at the end of the year, you will have to account for this money. Remember that this "rebate" will be applied to your 2008 taxes. So if you would have gotten back $700 in the spring of '09 (for your 2008 tax year), you will now only get back $100. This assumes current tax laws.
And, as I understand the rules, you get back however much you listed on your 2007 tax return as the tax bill, with the following limitations:
1. Maximum rebate is $600 for a single person and $1200 for a married couple with no children. Either single or married would get an increase of $300 per child listed on the return.
2. If you were below the tax cutoff level and paid no taxes, you get no money EXCEPT that there is a minimum of $300/person who showed $3000 in EARNED income.
3. If you make more than $75,000 Adjusted Gross Income (single, or $150,000 married), you get nothing.
One part that is unclear to me and to the IRS is if the $300 per child credit phases out with the higher income or not. As I understand this, one part of the law says it does and the other part does not.
And a second part that is unclear to me is if the $300 per child addition is only if you paid the extra part in taxes. For example, my personal tax bill this year is about $XXXX. I do not know if my wife and I get just the $XXXX, or if we get $XXXX PLUS the $1200 for the four children. We did not pay 2400 this year in tax.