Tax rebate notices are in the mail.
The first batch of them went out this week
to taxpayers, telling them what to expect.
A special mailing is going out in mid-March
to low-income seniors and disabled veterans
so they don’t miss out on receiving a rebate.
We’ll shed light on a bunch of issues.

Want to get your money the fastest way?
Have the Service wire your 2007 refund
directly to your bank. That way, your rebate
will be wired as well. IRS says the first wave of rebate checks and direct

deposits will go out May 2. Back in 2001,
IRS sent out most rebate checks over a 10-week period. A similar schedule
will be used this year, although direct deposits should speed up payouts.

Low incomers with hefty child credits can still receive a rebate,
as long as they meet other tests, such as having $3,000 of earned income.

That’s true even if the child credit equaled or exceeded their 2007 tax.
Although rebates are typically keyed to a filer’s income tax liability,
the amount of the child tax credit is added back for rebate purposes.
A spike in 2007 income won’t necessarily nix your tax relief,
even if your income was too high for you to get a rebate check this year.

That’s because the rebate is actually an advance payment of a tax credit for 2008. So if your 2008 adjusted gross income falls below the $75,000 or $150,000 thresholds, you’ll get the full credit when you file for 2008. And folks with children born this year won’t lose out either.
IRS will base rebates on the number of children in a family as of 2007.
But you can claim a $300 credit on the 2008 return for any new arrivals.

Taxpayers whose spouses died in 2007 can qualify for up to $1,200,
the maximum for marrieds, because they can file a joint return for 2007. It doesn’t matter that the survivor is single for tax purposes in 2008. The law says that any excess rebate received doesn’t have to be paid back.

Parents whose children turn 17 in 2008 get a similar break, too.
Since the child was 16 in 2007, the parents will get an extra $300 rebate, even though the kid is too old in 2008 to qualify for the child credit.

Seniors and disabled vets receiving tax-free benefits, take note:
Reporting these payments on 2007 returns will get you a rebate
if you otherwise aren’t required to file for 2007. Enter Social Security
and veterans’ disability payments on line 20a of the 1040 or on line 14a of the 1040A. Listing the amounts won’t make them taxable automatically.

IRS will finalize more details on rebates in the coming weeks.
We will be watching for further developments and report back to you.