TAX NEWS - 2010

IRS Tax Rebate Check 2009

IRS Tax Rebate Check 2009 – Will You Be Getting One?

First off, it must be emphasized that the following article is only for educational purposes. You have to consult your lawyer and accountant for the details of the tax rebates especially as the law can be confusing, intimidating and daunting for the average Joe.

With that being said, the tax rebates provided for by the Internal Revenues Service are the results of the Economic Stimulus Act of 2008. If you will remember, this is the law that subsequently injected $152 billion to the US economy ostensibly to provide relief for taxpayers suffering from the effects of the recession through tax rebates.


Two Groups

You must have qualified for the tax rebates in order for the Internal Revenue Service to provide the check. There are two groups in the scheme – Group 1 includes all taxpayers who paid their taxes in 2007 and Group 2 include widows of veterans, disabled veterans and senior citizens. It must be noted that Group 1 has applicable phase-outs and limits while Group 2 taxpayers can receive the maximum amount of the rebates in full.

Also, it should be noted that the Group 1 taxpayers can claim as many qualified children as they want, $300 for each one. Thus, it is possible to add to the maximum basic rebate amount of $600 for individual taxpayer and $1,200 for join filers. However, said basic tax rebate can be made lesser because of phase-outs.

For example, if you are a single tax filer and you have 2 qualified children, then you can receive a maximum of $1,800 computed as $600 basic plus $600 on the qualified children. Now, if you are your spouse declare taxes jointly and you have 2 qualified children, the ceiling amount on your rebates will still amount to $1,800 since the maximum basic rebate is set at $1,200 in your case. Keep in mind that this is not the amount you will receive in the end because of the phase-outs and limits.


Claim tax Rebates

Once you have filed your income tax return on or before the deadline set by the law, the Internal Revenue Service (IRS) will calculate the amount of the rebate due to your account. The check will then either be sent directly to your bank account or through registered mail. However, if you failed to file your income tax return, you will still qualify for a tax rebate under the stimulus program. This is with the assumption that you have combat pay, Social Security benefits and other income sources that should have been taxed.

The government has seen it fit to release the tax rebates as rapidly as possible. Thus, you should have been able to receive it by December 30, 2008 even when you have extended the filing of your returns. Tax rebates are good news for the beleaguered household with financial problems primarily brought on by the recession. However, it cannot be overemphasized that the tax rebates must be handled with care lest it goes the way of the drain. And there goes your stimulus check, sort of.