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Old 02-26-2008, 03:17 PM
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re: federal rebate

Regarding the federal rebate, does anyone have information of what the upper income limit is for a head of household with one child?

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Old 02-27-2008, 04:30 PM
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What is the phaseout for the Tax rebate for Head of Household Filiers with 1 child?

Per the IRS, the phaseout levels begin at $75,000 and a reduction of 5% per $1,000 is applied over the lower limit.

Thus for example, for a Head of Household filier, lets assume that you have 1 child, and that your AGI is $90,000, and lets assume there is a federal income tax liability before child tax credit and it exceeds $600.

Ordinarily, you would receive a Rebate Check in the sum of the Individual rebate which is $600 and the Qualifying child credit is $300, which is $900. However, this is reduced due to the phaseout limitation of $750.00 {( $90,000 - $75,000 = 15,000 x 5% = 750}.

Thus, the rebate check you will get will be $900 less the $750 (phaseout limitation) resulting in a net check in the amount $150.

And by simple math, you can conclude that if your AGI exceeds $93,000 your rebate check would be Zero! This is due to the phaseout limitation of $900 {5% X (93,000-75,000)}.

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