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So, about these economic stimulus rebate thingies...
ChadTower:
--- Quote from: SavannahLion on February 14, 2008, 01:23:00 pm ---I think the maximum earnings cap is $75,000 and the low earnings limit is $3,000. It seems to me if you're at the sweet spot of $75,000 after deductions, you'll get your maximum. Otherwise you'll get less either way. :badmood:
--- End quote ---
$150,000 for married filing jointly, which will be many of the people here.
SavannahLion:
Does every married couple here earn the maximum $150,000 though?
That's the point I'm trying to make, if you don't earn the sweet spot of $75k or $150k, you're not getting the maximum $600/$1200.
The way I see it, no one is going to get enough money to actually spend it on anything interesting or useful. It's like those stupid gift cards people give you. People get a $20 gift card, but there's no way to ever actually spend just $20. Statistically speaking, people with gift cards tend to spend more money beyond the initial gift card than they would have if they didn't receive the gift card.
whammoed:
--- Quote from: SavannahLion on February 14, 2008, 03:51:43 pm ---
That's the point I'm trying to make, if you don't earn the sweet spot of $75k or $150k, you're not getting the maximum $600/$1200.
--- End quote ---
It may very well be, but based on what I've read, I'm not convinced that $75k/$150k is the sweet spot. The IRS page linked does not explain it fully. They mention a sliding scale when going over $75k/$150k but don't go into the rising scale past $3k. Perhaps the minimum to get the $600/$1200 is below the $75k/$150k mark, or maybe it has to do with how much in taxes you ended up paying in 2007. There is information/speculation/calculators out there but they don't all agree.
shardian:
The way I understood it, the sweet spot is having a tax liability higher than the $600/$1200, with out going over the 75k/150k single/joint limit. If you are over the 75k for singles, or 150k for joint filing, then you get a $50 deduction in rebate for every $1000 you are over the limit.
Read the following article. It is the best big picture summary I've seen.
http://finance.yahoo.com/taxes/article/104417/Tax-Rebate-Winners-and-Losers#3
ChadTower:
--- Quote ---In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).
--- End quote ---
--- Quote ---The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.
--- End quote ---
If you owe more than $600 in taxes you get $600 back. If you earn more than $75,000 AGI your rebate will be reduced by 5% of the difference betwen $75,000 and your AGI.
There just isn't a clearer way to say it. SavannahLion is mistaken.
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