Business and economics |

Taxpayer asks:
Hi Kelly!
I just received my tax rebate, but it was for $600 and I am a single mom so I though it would be $900. I was just wondering how I go about figuring out which amount is correct. Will I receive the $300 later for my son?
You are the only website I have been able to find useful when it comes to anything about taxes. I appreciate it… Thank you!

Taxgirl says:
You should receive all of your rebate in one payment unless you specifically directed that your 2007 tax refund be split (this is unusual and you would know if you had done so).

I’ve actually received a lot of variations on this question. And while I clearly don’t know your personal details, here is my best guess: I’m guessing that you did receive your rebate for your qualifying child ($300) but that your own rebate amount was reduced from $600 to $300.

Your payment would be reduced to $300 as a single filer if you had no net income tax liability for 2007 - check your 2007 tax return for details. You would receive $600 if you are married filing jointly if you had qualifying income of at least $3,000.

To figure your net income tax liability on a form 1040, check the amount shown on Line 57 plus the amount on Line 52:

On form 1040EZ, it is the amount shown on line 10:

What counts as qualifying income? It is the total of:

Wages reported on federal form W-2;
Net self-employment income;
Social Security benefits reported in box 5 of the 2007 Form SSA-1099;
Railroad Retirement benefits reported in box 5 of the 2007 Form RRB-1099;
Veterans’ benefits received in 2007, including veterans’ disability compensation and disability pension or survivors’ benefits received from the Department of Veterans Affairs; and
Nontaxable combat pay if you chose to include it as earned income on your 2007 return.

Qualifying income does not include Supplemental Security Income (SSI).

If you are entitled to receive the basic amount, you may receive an additional $300 for each qualifying child. A qualifying child is under the age of 17 and has a valid Social Security number - an ITIN is not sufficient.

You can find more information about why your tax rebate might be smaller than anticipated at my prior post.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!