Clearing up tax rebate confusion

Wednesday, February 13th 2008, 7:59 pm
By: News 9

By Jennifer Pierce, NEWS 9

If you're confused about the tax rebates you're not alone, but the first step you need to take to receive a rebate check is to file your 2007 taxes.

Taxpayers are turning to their preparers to fill in the blanks.

"They are wanting to know, ‘how much do I get and when do I get it?'" Liberty Tax Service Owner, Keith McKinnon, said.

If you received a paycheck last year, and filed your taxes by April 15, you may be set.

"The rebate checks will go to anyone who has eligible income of $3,000 or more," McKinnon said.

So if your income is less than $75,000 and you're single you can expect $600. Married couples making less than $150 thousand will get $1,200. And those with children will get $300 for each child.

"The Treasury Department is going to start mailing out checks to over 130 million people starting in May," David Stell, Internal Revenue Service, said. "The mail out will continue through late spring and into the summer."

Some taxpayers look forward to the extra money.

"Yeah, we need a vacation," Kimberly Kelso said. "Probably season passes to Frontier City."

Still, others have some concerns.

"One thing I heard about it was that they are taxing us on it," Destany Moore said.

"Here's the good news, this rebate is not taxable for federal tax purposes," Stell said. "It will not need to be shown on your 2008 federal tax return."

You don't have to pay state taxes either, and it will not decrease the refund you get next year.
So with that in mind, consumers are free to spend the money without worrying about Uncle Sam.

"Probably buy groceries and buy things that I need," Moore said.

"I think most of our customers will be putting it back into the economy," McKinnon said.

I'm also told the sooner you file your taxes does not affect when you will receive a rebate. In that past, checks have been sent out based on social security number.

The government is still working out the mail out details.

Those who receive social security and disability benefits can also file for a tax rebate, just see your tax preparer for the paperwork.