Tax Rebate... What are you spending your Tex Rebate on???
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From: Diamond Bar, California
Tax Rebate... What are you spending your Tex Rebate on???
Just wondering how many EVO owners plan to spend their tax rebates on their cars? I should be getting $600.00 and I am torn between using this for a vacation or on some Cams. Some EVO owners here may be getting $1,200.00. In case your planning on saving, the federal govt. is encouraging spending and saving the tax rebate is helping no one.
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From: Diamond Bar, California
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From: Diamond Bar, California
Just in case you are wondering how it will work-
"Almost everyone who earns income will receive some benefit," said Douglas W. Elmendorf, an analyst at the Brookings Institution. "The idea is to target the money on the people who will spend a large share of it, and to target it on people who are likely to be hurt by an economic downturn."
People who do not make enough to pay taxes but had at least $3,000 in earned income would get $300. Those earning less than that would be disqualified, as would the wealthiest. Older people living solely off Social Security checks would not get the rebate.
Individuals with adjusted gross incomes of more than $75,000 and couples with income exceeding $150,000 would get smaller checks. Contributions to individual retirement accounts, 401(k) retirement accounts and health savings accounts would not count toward the limits.
About three-quarters of those eligible for the checks are working people. About one-quarter would qualify solely through pension or interest income, such as retirees or people who are unemployed. Eligible people would get at least $300.
For middle-class people, the rebates are fairly straightforward. Most individuals would get a $600 rebate, couples would get $1,200, and those amounts would rise with the size of their families. High- and low-income people, however, would get only a partial benefit.
People with income less than $75,000 would get a rebate equal to the taxes they paid in 2007, up to $600. Couples with income less than $150,000 could get up to $1,200. Those who earned more than $3,000 but owed little or no taxes would get a flat $300, or $600 per couple.
So a low-income family of four — with $35,000 in income and virtually no tax liability — would get $1,200. That includes the flat $600 per couple and $300 for each child.
A single person earning minimum wage would receive the lower rebate, $300.
A single parent of two with income of $38,000 and a tax bill of $433 would get $1,033 — a $433 tax rebate plus $300 per child.
To focus the payments on middle-class people, the plan includes rules that reduce the rebates for those with higher incomes. For each $1,000 over the limit, the payment goes down by $50.
That means that while a family of four with income of $95,000 would get $1,800 — $1,200 for the couple and $300 for each child — a family of four with income of $160,000 would get less, and the same family making $200,000 would get nothing.
Income of $160,000 would put a family $10,000 above the income threshold, reducing the benefit by $500 for a rebate of $1,300. The wealthier family, which falls $50,000 above the threshold, would see its rebate vanish under the formula.
Similarly, a single person with no children who had $16,000 in income would get $600, while the same person making $85,000 — $10,000 above the limit — would get just $100.
People would not have to work to receive a rebate. A retired couple owing $4,000 in taxes would get the full $1,200; if they owed no taxes, they would receive only half that. If the couple earned less than $3,000, however, they would be ineligible. That includes 20 million older people whose only income is their Social Security checks.
The plan would allow people who do not qualify for a rebate this year to get one in the spring of 2009 if they become eligible based on their income level or tax liability in 2008.
"Almost everyone who earns income will receive some benefit," said Douglas W. Elmendorf, an analyst at the Brookings Institution. "The idea is to target the money on the people who will spend a large share of it, and to target it on people who are likely to be hurt by an economic downturn."
People who do not make enough to pay taxes but had at least $3,000 in earned income would get $300. Those earning less than that would be disqualified, as would the wealthiest. Older people living solely off Social Security checks would not get the rebate.
Individuals with adjusted gross incomes of more than $75,000 and couples with income exceeding $150,000 would get smaller checks. Contributions to individual retirement accounts, 401(k) retirement accounts and health savings accounts would not count toward the limits.
About three-quarters of those eligible for the checks are working people. About one-quarter would qualify solely through pension or interest income, such as retirees or people who are unemployed. Eligible people would get at least $300.
For middle-class people, the rebates are fairly straightforward. Most individuals would get a $600 rebate, couples would get $1,200, and those amounts would rise with the size of their families. High- and low-income people, however, would get only a partial benefit.
People with income less than $75,000 would get a rebate equal to the taxes they paid in 2007, up to $600. Couples with income less than $150,000 could get up to $1,200. Those who earned more than $3,000 but owed little or no taxes would get a flat $300, or $600 per couple.
So a low-income family of four — with $35,000 in income and virtually no tax liability — would get $1,200. That includes the flat $600 per couple and $300 for each child.
A single person earning minimum wage would receive the lower rebate, $300.
A single parent of two with income of $38,000 and a tax bill of $433 would get $1,033 — a $433 tax rebate plus $300 per child.
To focus the payments on middle-class people, the plan includes rules that reduce the rebates for those with higher incomes. For each $1,000 over the limit, the payment goes down by $50.
That means that while a family of four with income of $95,000 would get $1,800 — $1,200 for the couple and $300 for each child — a family of four with income of $160,000 would get less, and the same family making $200,000 would get nothing.
Income of $160,000 would put a family $10,000 above the income threshold, reducing the benefit by $500 for a rebate of $1,300. The wealthier family, which falls $50,000 above the threshold, would see its rebate vanish under the formula.
Similarly, a single person with no children who had $16,000 in income would get $600, while the same person making $85,000 — $10,000 above the limit — would get just $100.
People would not have to work to receive a rebate. A retired couple owing $4,000 in taxes would get the full $1,200; if they owed no taxes, they would receive only half that. If the couple earned less than $3,000, however, they would be ineligible. That includes 20 million older people whose only income is their Social Security checks.
The plan would allow people who do not qualify for a rebate this year to get one in the spring of 2009 if they become eligible based on their income level or tax liability in 2008.
