Courtesy of Kiplinger’s Retirement Report, April 2008:
If your 2007 income was too high to qualify for the tax rebates, don’t despair. Remember, the rebate is really a prepayment of a tax credit created for 2008 returns. If your 2008 income falls below the phase-out levels–$75,000 on a single return or $150,000 on a joint one– you’ll get your tax benefit when you file your 2008 return next spring.
Should your income exceed the threshold in 2008, and you received the rebate in 2007, not to worry. In an unusual heads-you-win/tails-the IRS-loses setup, you won’t have to pay the money back.
I want to know if my son will pay me back the $300 that I gave him since he did not qualify to receive the rebate this year as he was still my dependent in 2007?
