Tax refund? Tax stimulus rebate? How to get both of them faster

This tax season, many of us can look forward not only to a tax refund, but also to a one-time tax rebate, ranging from $300 to $1,200, plus $300 for every child.

To get that rebate, you must file a 2007 federal tax return.  And if you want that new rebate faster, you should file your 2007 taxes electronically and arrange for direct deposit of your tax refund. Doing so will automatically will also ensure direct deposit of your rebate. The IRS asserts this route is faster and more secure than snail mail.

How long can you expect to wait for your refund if you do it all electronically? As little as 10 days from the time the IRS confirms it got your return. And your rebate? The IRS says the earliest rebates will be distributed in early May.

Though the IRS hasn't said so, it stands to reason that early filers would get their rebates early as well. Conversely, it's a sure bet that if you file for an extension, you'll have to wait beyond that time for your rebate. That's because the IRS must have your 2007 return before it can determine the size of your rebate.

Other rebate facts:

•You must have at least $3,000 in income to get the rebate. At $75,000 in adjusted gross income for individuals and $150,000 for couples filing jointly, the rebate begins to phase out.

•If you're eligible to be claimed as a dependent on someone else's tax form, you're ineligible for the rebate. For example, college students who earned more than $3,000 can't get the rebate simply by asking their parents to forego claiming them as dependents.

•A number of folks who normally wouldn't file an income tax form, including certain veterans,  Social-Security recipients, and recipients of Railroad Retirement benefits, may be eligible for the rebate. But they MUST file a 2007 return in order to get it.

•If you've filed a 2007 return already but haven't included the benefits mentioned above--which might qualify you for a rebate--you can file an amended return, Form 1040X, available at  www.irs.gov.

•Beware of e-mail and phone messages on the rebate that purport to be from the IRS. They are most certainly are scams.

Comments

[Marchelle]

I have another college student question. My daughter was a full-time student in 2007. She takes out student loans in her name to pay for her college. We are not supporting her in any way. She works almost full-time and is able to support herself. She has not lived with us for a few years now, even during summer breaks. We decided not to claim her as a dependent because of the facts stated. Would she be able to collect on the 2008 stimulis tax break?

[Barbara]

I filed injured spouse with my now ex-husband (divorced 3/6/08), he is on social security and I made 28,808. We have 1 child under 17. I expect 900.00 rebate but will the injured spouse kick in for that also and take 50% for his debt and give me the other 50% since he owes the VA 1100 for medication or have I just lost my 1/2. The Jackson Hewitt web site says that they will use the injured spouse claim but I want to make sure.

[baba092306]

how long will it take to recive the stiulus rebate through the mail as a check? and i keep hearing that if for somereason we dont recive our rebate this year that we will be credited for it next tax season it this true?

[Tobie]

To Baba092306:

Please see my posts from yesterday (March 17), and February 21 for answers.

[Tina]

Ok I'm another one who has a question about an injured spouse refund.

We already filed the injured spouse form with our taxes. My husband works and I don't. All income on this years (2007) taxes was his. We also have custody of 3 grandchildren (which is why I don't work). I owe on my student loans.

Will they take all of the stimulus rebate,
will they take half of it,
or will they take just the 600.00 (the portion of the married filing jointly).
I hope they don't take the 300.00 a piece for the kids, since my hubby did work hard all year.

[Elizabeth]

I have a question. I have one child who I do not claim as a dependent on my 1040 (due to a divorce)however, I do claim him as a qualifying child because I am the custodial parent and he resides with me 100% of the year. Will I receive a $300 tax rebate for him this year?

Thanks,
Elizabeth

[ell]

if our bussiness was at a loss would we still be eligable for the rebate?

[SHARON HIXSON]

I AM A SINGLE MOTHER WITH 4 ADOPTED CHILDREN. OUR ONLY INCOME IN 2007 WAS ADOPTION SUBSIDY. WOULD I QUALIFY FOR THE REBATE. I AM ON DISABILITY WHICH NOW, BUT WASNT UNTIL JAN 08.
THANK YOU

[Tobie Stanger (Consumer Reports)]

Sharon:

The subsidy you describe does not appear to fall into the category of eligible income for the rebate. It either has to be earned income, or one of several untaxed benefits like Social Security and Veterans Administration payments that the government is including as eligible.

If the disability you mention is Social Security disability income (reported on an IRS Form SSA 1099, Box 5), you may able to apply for the rebate next year when you file a tax return. But you'll have to wait 'til next year's tax season to determine that.

[Tobie Stanger (Consumer Reports)]

Ell (from March 19):

I assume you're talking about a small business, the kind whose financials you would report on Schedule C.

As long as your earned income for 2007 is above $3,000 and below $150,000 (filing jointly) for 2007, you are eligible for a full stimulus rebate. As I've mentioned, other types of unearned payments, like Social Security, also figure in to the calculation. Whether you had a loss in your business is irrelevant if you meet these income criteria.

Don't forget that if you aren't eligible based on your 2007 return, you'll have another chance to get it next year, based on information on your 2008 return.

Call the IRS at 1-800-829-1040 if you'd like to talk to someone from the agency about it (Press 1, then 5).

[Tobie Stanger (Consumer Reports)]

Elizabeth (from March 18):

If you are not claiming the child as a dependent for 2007, you will not be eligible to receive the $300 child tax rebate this year.

If you claim the child as a dependent when you do your 2008 taxes, however, you may be eligible for the rebate next year. I've spoken with a few experts who say that's one of the nuances of the law that haven't been completely examined.

[Sunshine]

I have moved since I filed my taxes. I ahve a forwarding order with the postal service, but by june/july it will have expired. I can renew it. If they send the paper check to the address I filed under in January will it get forwarded to me or do I have to go somewhere online and change the address?

[siva]

Hi,

My wife has ITIN and I have SSN. I already filed (filed jointly) tax return for 2007. Now I have applied for my wife's SSN. Can I send 1040X with my wife's SSN after receiving SSN to be eligible for tax rebate?

[ps]

My husband and I filed a joint tax return for 2007, we have one son together and my husband owes back pay on child support. I filed an injured spouse form, where I claimed my son as my dependent,after our tax return was filed. Will my son and I get our part of the tax rebate?

[Tobie Stanger (Consumer Reports)]

To Sunshine (March 21): It wouldn't hurt to fill out a new postal change-of-address form. In addition, you should fill out a form with IRS. Check this URL for information:

http://www.irs.gov/taxtopics/tc157.html

[Tobie Stanger (Consumer Reports)]

To PS (March 23), Barbara (March 15), and PJ (March 12):

My source at the IRS told me the following regarding injured-spouse forms:

"Each of these are fairly specific situations, so of course, I can't say
what will happen, given that Form 8379 was already filed. However, here
is what I can say in general terms.

A single injured spouse form will cover both a taxpayer's regular refund
and the stimulus payment.

An injured spouse is one who files a joint tax return with their spouse
who has a past-due obligation. The injured spouse can get his or her
share of a joint income-tax refund, as well as their share of the
stimulus payment, by filing Form 8379, Injured Spouse Allocation. Follow
the instructions to the form carefully. The injured spouse will get
their share of these payments, and their spouse's share will be applied
to his or her past-due federal or state income taxes or non-tax federal
debt such as student loans and child support.

The allocation request will be processed more quickly if Form 8379 is
attach to their regular 2007 federal income tax return. As always,
filing electronically also expedites the process."

[joyce]

i have made 24,000 a year on taxes,will i get the $600.00 and i did the h&r block with the refund on the card, does that mean, it will do back on the card or will it come in the mail? is there a way to call and see how much they will be sending me? i would hate to spend money and then they dont send me the money, i have no kids, please help..

[Teresa]

I am a divorced, single mother with full custody of an 11 year-old child, whom I don't claim as a dependent on my 1040, as the result of her father requesting and being awarded this option by the court, following our divorce. I am the custodial parent, have full custody, and this child has always resided with me. It's my understanding that, due to the fact that I didn't claim our child on my 2007 tax return and am unable to claim them, hereafter, I will "never receive" the $300 rebate. Is this true? And if so, can anything be done to change how this rebate is issued to "divorced parents"?

On March 20, 1008 you wrote: "I've spoken with a few experts who say that's one of the nuances of the law that haven't been completely examined".

Does this mean that there's a possibility that the awarding of this rebate could change in the future for those of us custodial parents who don't have the option of claiming our children as a dependent?

Thank you for your response back.

Teresa

[Tobie Stanger (Consumer Reports)]

Teresa,

The "nuance" I refer to is the possibility of getting the rebate next year if your divorce decree allows you to claim your child as a dependent in alternate years. The law allows you you try for the rebate next tax season in the event you didn't get the full rebate in 2007. In theory, your ex could claim your child for 2007 and get the rebate this year, and you could claim your child for 2008 and get it next year.

As I said, I think this interpretation hasn't been fully examined by the experts, so it's not certain that it would work. But because you say you don't have that type of arrangement to begin with, it is not even an option for you. Sorry.

[Mary Kate]

I had my income tax return directly deposited into my checking account. Since then, I've closed that checking account altogether. Will they mail me my stimulus rebate to me instead, or do I need to contact the IRS about this matter?

[Marina]

I was wondering since I didn't have my tax refund directly deposited can I get my rebate directly deposited?I filed early before we knew for sure if we were going to get the rebate.I filed though H&R Block and got my check in 2 days.Can H&R Block fix it for me?

[Debbie]

It seems grossly unfair to me that my 18 year old son who is a freshman in college and earned $10,000 last year would receive $600 if he weren't getting an education, but because he is attending college he gets zero. This is a mistake in the Stimulus Plan that NEEDS to be corrected!!

[Betsy]

Hi,
I just got off the phone with the IRS. I have an adopted son and on our 2007 tax return, we used his tax ID number since he had not been issued a social security number. However, I have since gotten his SS card. The IRS told me to fill out a 1040X with his updated info. Then he told me it takes 8-12 weeks to process a 1040X. So, does this mean I will not get credit for my son on the rebate? It doesn't seem fair that parents of adopted children are not getting the same rebate.
Thanks

[Tobie Stanger (Consumer Reports)]

Betsy,
You might want to call the IRS again and ask them. My gut reaction is that you would be eligible for the stimulus payment for your adopted son, assuming he met the eligibility requirements for a qualifying dependent. Here's the URL for the definition of a qualifying child on the IRS Web site:

http://www.irs.gov/newsroom/article/0,,id=133298,00.html

You may have to wait longer for the child credit stimulus payment, however.

Don't forget that you will have another chance at the stimulus payment when you file your taxes for 2008 next April. If you determine that you didn't get the full amount this time, you can try for the remainder next year.

[Diana]

I received a notice from the IRS in March saying I owe taxes for 2006. I signed the from and returned it along with additional information saying I did not agree with their findings. Will they hold my stimulus refund until this is cleared up?