Many Questions About Rebate Proposal

Friday, January 25th 2008, 7:44 pm
By: News On 6

Calls are pouring into tax agencies all over Green Country from people asking about the tax rebates.  The News On 6's Ashli Sims reports people are curious about how big the check will be and when it will arrive.  But, you shouldn't go counting your rebate check, before it's mailed.  First of all, yesterday's plan isn't even a bill yet, let alone a law.  Until it's actually passed by both the U.S. House and the Senate, there won't be any rebates for anyone.

All the rebate talk has many folks seeing dollar signs and counting the cash before it's even approved by Congress.  Local tax preparers say dozens of taxpayers are calling.  The most common question is how much will I get?

The president's plan calls for rebates between $300 and $600, twice that for working couples.  Parents could receive an extra $300 per child.

The rebate news filled the News On 6's email inbox with more questions.  One viewer asks if the rebate will be limited to two children only. Or if a full-time college student will be counted?

As the old saying goes the devil is in the details, and those details are still being hammered out in Congress.  So far, there is no limit on the extra money for kids, but that could change.

Tax experts say if you claim a college student as a dependent, then you could qualify for the extra $300.  But again, it depends on how the law is written.

Another viewer, who owes back taxes, wonders if she could still get her rebate check.  Sherry Alsup at Liberty Tax Services says in the past, if you owed back taxes, child support, or student loans, the rebate would go straight to those payments.

Things are made even more complicated, because it's not clear which tax return the government will use to figure your rebate.

If they use 2006, you will not be able to claim children born in 2007.  If they use 2007, you could have to file last year's taxes, before you can get your rebate check.