There will be around 117 million individuals as well as families who may receive a tax rebate in a program that was announced on Thursday afternoon, January 25, 2008. Most individuals will receive from $600 to $1,200. There is also a chance some may receive more as well as some receiving as little as $300.
President Bush and his House leaders has established a plan to inject $150 billion into your hands in an attempt to revive the ailing economy.
There are a few public developments that are expected today as law-makers digest the agreement between: House Speaker, Nancy Pelosi, Henry Paulson (Treasury Secretary) and John Boehner, leader of the Republicans, that is made as an attempt to stop the first potential recession in the United States since 2001.
With the backing of the Bush administration, the House leaders are pretty certain that their plan of:
would prevent the opposing Senate from making changes such as increasing unemployment benefits.
This is the third time that a rebate or ’emergency checks’ has been issued under the Bush administration. First in 2003, credits of $400 per child were issued and then in 2001, individuals received $300 and couples received $600 in tax “pre-rebates,” which were issued against the following years tax return.
The house leaders only agreed on the basic blueprint of the plan on Thursday. There are still a lot of details that are needed to be worked out.
This Is What It May Mean To You:
– You will be eligible to receive the $600 or $1,200 payment, if you’ve paid your federal taxes in 2007 and earned an income of at least $3,000.
– Those who earned at least $3,000 but did not pay any federal income tax in 2007, would receive $300 per individual and $600 per couple
– There is also an income ceiling. If your individual adjusted gross income was more than $75,000 or couples combined incomes had more than $150,000, the rebate amount is adjusted.
– Also individuals with gross income of $87,000+ and couples combined incomes of $174,000 are not eligible, unless they have children.
– The rebate checks should start going out in May 2008. Most individuals should receive them by July, this according to U.S. Treasury Secretary Henry Paulson
Here Are Some Additional Questions And Answers
Since the 2008 Tax Year just started, how will they decide who is eligible?
What if an individual has a baby in 2008, so the baby dependent deduction was not received in 2007?
How and where will the IRS mail the rebate check?
What do US based businesses get out of this?
In the past, small businesses were able to claim tax deductions on $125,000 spent on new equipment, that will be increased to $250,000.