Tax Rebate Update: Don't Wait to File

Looking forward to getting a cash rebate from the government this year? The IRS estimates that more than 130 million Americans will benefit from an income tax rebate plan that will give $600 to $1,200 to most households and at least $300 to lower-income people, Social Security recipients and disabled veterans. What should you do to make sure you get your share? File your taxes. Only qualified people who file a 2007 return will receive a rebate.

Why Do Your Taxes and File Now?

You should do your taxes now because how much you receive will be based on information contained in your 2007 tax return. Taxpayers who file after April 15 could get their rebates months after those who file on time.
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What Is the Tax Rebate?

The tax rebate is a one-time cash payment to most American households. As the major part of the government's economic plan to prevent a recession, the rebates are intended to stimulate the economy by encouraging consumer spending.

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How Will the Rebates Work?

The rebates are based on your income, how many children you have and whether you receive Social Security or disabled veterans' benefits.

• Most individual taxpayers will get $600 and most married couples will receive $1,200.
• Lower-income earners who make at least $3,000 but pay no taxes will get at least $300 per person or $600 per couple.
• Social Security recipients and disabled veterans, even if they pay no income taxes, will receive at least $300 each, or $600 for couples.
• In addition to the tax rebates above, households will receive $300 per child under age 17.
• Higher-income earners would be excluded, with tax rebates reduced by $50 for every $1,000 of adjusted gross income above $75,000 for single taxpayers and $150,000 for couples. The rebates phase out completely at $87,000 in adjusted gross income for single taxpayers and $174,000 for couples.

To receive the rebate, you must file a 2007 tax return—even if you normally aren't required to file based on low income or your status as a Social Security recipient or disabled veteran.

When Will I Get My Tax Rebate?

You could get your rebate by mail as early as May or June. The IRS will begin sending the tax rebates in May to eligible people who filed their 2007 taxes by April 15, 2008.
To get your rebate as early as possible, file your taxes now. Try TurboTax Online to make doing your taxes easy.

Will the Tax Rebate Affect My 2007 Tax Return?

The rebate will not affect the 2007 taxes you owe. Do your 2007 federal taxes as usual.
Even if you are not usually required to file, but are eligible to receive a tax rebate, you must file a 2007 return to get your rebate. That way, the IRS can see that you qualify and send you a check.
Read more about the Tax Rebate Plan.

Take advantage of Military.com's partnership with TurboTax. File your Federal taxes for free, plus receive a discount on your State Tax Filing when you use TurboTax!

Updated for tax year 2007