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This new Tax Rebate. Does this mean I have to change my tax return I already submitted?
Posted by admin on Sep 8th, 2009
little bitty pretty one asked:
I am a full time student and hence qualify for the hope tax credit. I am still waiting for my return to be accepted by the I.R.S, but this new tax rebate They just approved today, will I have to change my return so I get that? Any help would be appreciated.
I am a full time student and hence qualify for the hope tax credit. I am still waiting for my return to be accepted by the I.R.S, but this new tax rebate They just approved today, will I have to change my return so I get that? Any help would be appreciated.
The rebate doesn’t change the existing 2007 tax returns in any way.
I haven’t read enough of the bill to determine if 18-23 year old dependents get a separate check based on earnings or if they have to wait until they file their 2008 return in 2009 to get the rebate. You are presumably still a dependent and the $300 check is being sent out to parents only if their child is under 17.
No.
Regardless of whether your parents claim you as a dependent, under the terms of the compromise bill passed by Congress, you also would be eligible to receive a rebate of up to $600 if you paid that much in Federal Income Tax. If you only paid $350 in taxes (less than the $600 rebate limit), you only get back $350. Since you had earned income of at least $3000, you would get at least the minimum rebate of $300.
While the rebate depends on your 2007 income, it is actually a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers.
It’s like a one time tax cut for 2008, but you get the rebate now instead of waiting to file your 2008 taxes. Because this is an advance payment on your 2008 taxes, your refund next year could be more (or less!) depending on your 2008 income.
Use the calculator below to compute your rebate.