Volvo OPINIONS Forum

Bush's "economic stimulus payments" are going out tomorrow, the first batch of them anyway.

Putting my manners aside to bring up the subject of money, I wanted to ask if anyone on the brickboard actually understands how the rebates are computed?

It seems fairly simple. If you did not pay taxes in 2007, but you had at least $3,000 in earned income AND you filed a 2007 return, you should receive a rebate of $300.00. If you had a tax liability in 2007, you will receive the lesser of $600 or the amount of your liability (if you paid $400, your rebate is $400, but if you paid more than $600 your rebate 'stops' there). These amounts are doubled if you are married and filed your 2007 return jointly.

But here is where I get confused....does a tax liability mean that you owed taxes when you filed your 2007 return, or does it simply mean that you had wages (or other income) subject to withholdings during the tax year?

The big question in my mind is: If you had enough deductions and/or credits to get a full or near full refund of the taxes that you paid in 2007, which rebate do you get? Do you fall into the category of an individual who did not pay taxes, or not?

Too confusing for me!! Any tax professionals on the board?