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Economic Stimulus Package Tax Rebate Information
Economic Stimulus Package
Tax Rebate Information

Below you will find some useful information regarding your tax rebate included in the recently passed Economic Stimulus Package. I recommend you take a look to see how the rebates will affect you.

  • You must file a 1040 or 1040-EZ federal tax return for 2007 in order to receive your rebate check.


  • Your rebate is a one-time tax cut.


  • Single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200.


  • Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income - which can include Social Security and disability payments - will get $300 rebates per person or $600 per couple.


  • The stimulus legislation allows for a 5% phase-out rate for households above the income caps of $75,000 for single filers and $150,000 for joint filers. That means for every dollar a tax filer earns above those caps, he or she will lose 5 cents of the rebate


  • Example: A person earning $85,000 would receive a rebate check for $100


  • $85,000 - $75,000 = $10,000 (Actual AGI – Stimulus AGI = Difference)
  • $10,000 x .05 = $500 (Difference x 5% phase-out = Rebate deduction)
  • $600 - $500 = $100 (Stimulus rebate – 5% phase out = Actual rebate check)


  • Families who qualify for the rebate will also receive an additional $300, one time, rebate per child. The child must have been under the age of 17 at the end of 2007.


  • Some people are normally not required to file a return. To get a rebate, however, they have to file a federal tax return.

This stimulus rebate is in addition to your expected 2007 tax return. The one time rebate will not be deducted from your 2007 tax return.

Should you have specific questions regarding your tax situation, I highly advise you to contact your local tax professional.

Seniors on Social Security who have specific questions can contact their specific County’s Office of Aging for assistance.

   Sincerely,
James T Walsh
   James T. Walsh
   Member of Congress