TheJobBored

I call it “so called” because it still has to pass the Senate. And also, cause I don’t really understand how a couple hundred dollars here or there will help. Unemployment rising. People $50 thousand in the hole on the value of their houses. Banks on the brink of bankruptcy.

I guess the idea is you will run out to Target and buy a new wide screen TV. That MIGHT save us from a recession. But doesn’t that money go to Japan or Korea or China? And hey, fill up your gas tank a couple of times and the rebate is gone, right?

Anyway, here is how WiseBread figures it. This is who gets what in tax rebates if this thing goes through:

First, let’s see what singles could get back.

Earnings Rebate

$3,000 or less A big fat zero.
$3,000 or more, paid no taxes $300.
$3,000 or more, paid taxes $600.
Have children? $300 per child

Now, the reductions.
It’s fairly simple math. Once you earn over $75,000, your check is reduced by 5% per $1000 above the $75k threshold. After $87k, you get nothing. Here are some rough examples.

Single person earning $50k a year with 2 children = $1200
Single person earning $80k a year with 1 child = $675 ($900 – $225)
Single person earning $90k a year with no children = $0

Couples get the same treatment
, only everything is doubled to take into account the two people in the household:

Earnings Rebate

$3,000 or less A big fat zero.
$3,000 or more, paid no taxes $600.
$3,000 or more, paid taxes $1200.
Have children? $300 per child

And the reductions.
Once again, simple math. Once couples earn over $150k, the check is reduced by 5% per $1000 above the $150k threshold. After $174k, you get nothing.

I found these further examples, all based on the 2007 filing period.

A couple with no children, with adjusted gross income of $100,000:
$1,200 couples rebate. A $1,200 rebate.

A couple with income of $145,000, with three children:
$1,200 for the couple, plus $300 for each child. A $2,100 rebate.

A couple with income of $160,000 with two children:
$1,200 for the couple plus $300 per child — BUT would go down by 50 percent (5% for every $1000 over the $150 threshold). A $900 rebate.

A couple with income of $200,000 and four children:
Disqualified, income exceeded $174,000. No rebate.

Related posts:

1. This Year’s Tax Code Changes
2. Where Are The Jobs In The Stimulus Package
3. What Is Middle Class?
4. Calculate Your Tax Refund Today
5. Paid Family Leave The Wave of the Future?