The Tax Resources Blog

Archive for August, 2007

Tax Deadline Extension October

Question: Anyone have answers to the Stimulus Tax Rebate?

I have lots of questions about the tax stimulus package.

1) How can they possibly base it on 2007 income? They say they’ll have the checks out by mid-May, but the Tax Deadline isn’t until April 15th, and MILLIONS of people file extensions, meaning they won’t file until October 15th.

2) If you made over $150,000 as a couple, will you get a prorated rebate? Or are you out in the cold completely?

3) Is this truly a rebate? Last time, it was an advance, and you had to subtract it from the next years Tax Return, which left some people owing.

4) Will young adults who file forms 1040EZ get any rebate at all if they are claimed as dependents on their parents return? If not, will their parents get the rebate if the child is over 17?

Answer: 1) That is why they are issuing the rebate checks beginning in May. Anyone that files an extension will have to wait until they file their Tax Return.

2) You will get a pro-rated rebate. Once your income goes over $174,000, then it is completely phased out.

3) Its an advance unless otherwise noted.

4) I haven’t seen anything about minors getting or not getting the tax rebate. Parents that claim their children will get another $300 per child.

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