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Are you expecting a cash 2009 Income Tax Reabet from IRS this year? IRS estimates that more than 130 million households will get benefits of income tax rebate this year. IRS calls it stimulus payments. To get this income tax rebate the taxpayers must have a valid Social Security Number and he must file a 2008 federal tax return with $3000 of Income. According to IRS eligible taxpayers will receive up to $600 and $1200 for married couples, and parents will receive an additional $300 for each eligible child younger than 17yrs. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must file their return this year in order to receive a stimulus payment. To get your tax rebate from the IRS, be sure to file your Federal Tax Return  |
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2009 Federal Income Tax Rebates Scenarios for Married Filing Separately
In most cases, payments will range from $300 to $600 for individuals and $600 to $1,200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of how the Economic Stimulus Act of 2009 may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:
1) Married, no children, filing separately; both have valid Social Security numbers (SSNs)
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately (MFS) filing status. Husband has adjusted gross income (AGI) of $7,000, none of which is earned income or other qualifying income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $0 (because he has no net income tax liability and no qualifying income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, and their joint net income tax liability is at least $1, their economic stimulus payment would be $600.
2) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $7,000, including $5,000 of earned income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $300 (he has no net income tax liability; however, he has at least $3,000 in earned income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, their economic stimulus payment would be $600.
3) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $25,000; wife has AGI of $26,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $600
Wife's economic stimulus payment is $600
Note — if this couple files jointly and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
4) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $350 (basic economic stimulus paymentof $600, phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $600
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
5) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $15,000 and net income tax liability of $286; wife has AGI of $25,000 and net income tax liability in excess of $600.
Husband's economic stimulus payment is $600 {basic economic stimulus payment of $300 (limited by his net income tax liability of $286, but raised to the minimum of $300), plus child amount of $300}
Wife's economic stimulus payment is $900 (basic economic stimulus payment of $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
6) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $650 (basic economic stimulus paymentof $600, plus child amount of $300; total $900, then phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $900 (basic economic stimulus paymentof $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
7) Choosing MFS instead of MFJ, one spouse with ITIN
Married couple, no children. The wife has a valid SSN, but husband does not qualify for an SSN. Instead, the husband has an Individual Taxpayer Identification Number (ITIN) which was provided by the IRS for tax filing purposes. They are each required to file for 2008 and filed separate tax returns, both using the filing status Married Filing Separately. They each meet the income tax liability and income qualifications to receive an economic stimulus payment of the maximum amount.
Husband’s economic stimulus payment is $0 (because he does not have a valid Social Security number)
Wife’s economic stimulus payment is $600
Note — if this couple files jointly, their economic stimulus payment would be $0, because they filed jointly and one of them does not have a valid Social Security number.
Examples of how the Economic Stimulus Act of 2009 may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:
1) Married, no children, filing separately; both have valid Social Security numbers (SSNs)
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately (MFS) filing status. Husband has adjusted gross income (AGI) of $7,000, none of which is earned income or other qualifying income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $0 (because he has no net income tax liability and no qualifying income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, and their joint net income tax liability is at least $1, their economic stimulus payment would be $600.
2) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $7,000, including $5,000 of earned income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $300 (he has no net income tax liability; however, he has at least $3,000 in earned income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, their economic stimulus payment would be $600.
3) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $25,000; wife has AGI of $26,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $600
Wife's economic stimulus payment is $600
Note — if this couple files jointly and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
4) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $350 (basic economic stimulus paymentof $600, phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $600
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
5) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $15,000 and net income tax liability of $286; wife has AGI of $25,000 and net income tax liability in excess of $600.
Husband's economic stimulus payment is $600 {basic economic stimulus payment of $300 (limited by his net income tax liability of $286, but raised to the minimum of $300), plus child amount of $300}
Wife's economic stimulus payment is $900 (basic economic stimulus payment of $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
6) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $650 (basic economic stimulus paymentof $600, plus child amount of $300; total $900, then phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $900 (basic economic stimulus paymentof $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
7) Choosing MFS instead of MFJ, one spouse with ITIN
Married couple, no children. The wife has a valid SSN, but husband does not qualify for an SSN. Instead, the husband has an Individual Taxpayer Identification Number (ITIN) which was provided by the IRS for tax filing purposes. They are each required to file for 2008 and filed separate tax returns, both using the filing status Married Filing Separately. They each meet the income tax liability and income qualifications to receive an economic stimulus payment of the maximum amount.
Husband’s economic stimulus payment is $0 (because he does not have a valid Social Security number)
Wife’s economic stimulus payment is $600
Note — if this couple files jointly, their economic stimulus payment would be $0, because they filed jointly and one of them does not have a valid Social Security number.
Labels: 2008 income tax rebate, 2008 tax rebate, basics of income tax rebate, federal income tax rebate
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Why Do Your Taxes - To Get IRS Income Tax Rebate?
You should do you taxes online now because you will only be eligible to get IRS Stimulus, if you have filed your 2008 federal tax return. The amount of tax rebate you received will be based on information contained in your tax return. Taxpayers who file their taxes after April 15 could get their rebates months after those who file on time.