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How much rebate can families and individuals expect from Congress’ economic stimulus bill? March 12, 2008

Posted by Daniel Downs in Congress, economy, finance, legislation, news, taxes.
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Here are some examples of how the Economic Growth Act of 2008 (economic stimulus bill) will benefit married couples with and without children as well as individuals with and without children during the recession that no one seem certain has occurred yet:

Married with children:

1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.

Individual rebate = $600
Qualifying child credit = $600
Total = $1,200

2) Married couple with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.

Individual rebate = $600
Qualifying child credit = $600
Total = $1,200

3) Married couple with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.
Individual rebate = $600
Qualifying child credit = $600
Total = $1,200

4) Married couple with two children, no wages, no social security benefits, no veterans’ payments, AGI = $25,000, federal income tax liability before child tax credit = $70.

Individual rebate = $600
Qualifying child credit = $600
Total = $1,200

5) Married couple with two children, AGI = $35,000, federal income tax liability before child tax credit = $1,070.

Individual rebate = $1,070
Qualifying child credit = $600
Total = $1,670

6) Married couple with two children, AGI = $80,000, federal income tax liability before child tax credit exceeds $1,200.

Individual rebate = $1,200
Qualifying child credit = $600
Total = $1,800

7) Married couple with two children, AGI = $160,000, federal income tax liability before child tax credit exceeds $1,200.

Individual rebate = $1,200
Qualifying child credit = $600
Phaseout reduction = ($500)
Total = $1,300

Head of household with children:

1) Single parent with two children, wages of $4,000, no federal income tax liability before child tax credit.

Individual rebate = $300
Qualifying child credit = $600
Total = $900

2) Single parent with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.

Individual rebate = $300
Qualifying child credit = $600
Total = $900

3) Single parent with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.

Individual rebate = $300
Qualifying child credit = $600
Total = $900

4) Single parent with two children, no wages, no social security benefits, no veterans’ payments, AGI = $20,000, federal income tax liability before child tax credit = $195.

Individual rebate = $300
Qualifying child credit = $600
Total = $900

5) Single parent with two children, AGI = $22,000, federal income tax liability before child tax credit = $395.

Individual rebate = $395
Qualifying child credit = $600
Total = $995

6) Single parent with two children, AGI = $60,000, federal income tax liability before child tax credit exceeds $600.

Individual rebate = $600
Qualifying child credit = $600
Total =$1,200

7) Single parent with two children, AGI = $90,000, federal income tax liability before child tax credit exceeds $600.

Individual rebate = $600
Qualifying child credit = $600
Phaseout reduction = ($750)
Total = $450

Married, no children:

1) Married couple with no children, wages of $4,000, no federal income tax liability.

Individual rebate = $600

2) Married couple with no children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability.

Individual rebate = $600

3) Married couple with no children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability.

Individual rebate = $600

4) Married couple with no children, no wages, no social security benefits, no veterans’ payments, AGI = $20,000, federal income tax liability = $250.

Individual rebate = $600

5) Married couple with no children, AGI = $25,000, federal income tax liability = $750.

Individual rebate = $750

6) Married couple with no children, AGI = $60,000, federal income tax liability exceeds $1,200.

Individual rebate = $1,200

7) Married couple with no children, AGI = $160,000, federal income tax liability exceeds $1,200.

Individual rebate = $1,200
Phaseout reduction = ($500)
Total = $700

Single, no children:

1) Individual with wages of $4,000, no federal income tax liability.

Individual rebate = $300

2) Individual with no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability.

Individual rebate = $300

3) Individual with no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability.

Individual rebate = $300

4) Individual with no wages, no social security benefits, no veterans’ benefits, AGI = $10,000, federal income tax liability = $125.

Individual rebate = $300

5) Individual with AGI = $12,000, federal income tax liability = $325.

Individual rebate = $325

6) Individual with AGI = $35,000, federal income tax liability in excess of $600.

Individual rebate = $600

7) Individual with AGI = $80,000, federal income tax liability in excess of $600.

Individual rebate = $600
Phase out reduction = ($250)
Total = $350

Of course, Congress expects families and individuals to consume! consume! consume! And, families and individuals should not forget to vote for Democrats in November. It’s only fair that they–the majority–get the proper credit for this economic fix. I wonder if they will take credit for the billions it will cost? Hmm….

Source: U.S. Treasury, Department of Public Affairs, February 13, 2008.

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Comments»

1. Anonymous - May 15, 2008

Argh. I can’t really “spend, spend, spend,” as a single parent with an AGI of around 18K, and a rebate of $600. I suppose I can pay part of her summer care with that.

2. Daniel Downs - May 15, 2008

Sure you can. Treat youself and your little one to an exotic mini vacation at one of the Asian, Italian, French, Mexican eateries. You know the kind with foreign sceneries, exotic flora, and musical atmosphere to match. If you prefer an more American adventure, there is always the nostalga of an Amish restaurant or 1960s themed kind. What the heck; go to McDonald’s remembering you don’t have to go China, Paris, London, Rome, Jerusalem, the Canary Islands to enjoy a Big Mac or Fun Meal. Just think of all the money you’ll save–no plane tickets, no bus fare, no hotel (unless you live in the boon docks without a nearby McDs. Hey, the sky’s the limit. Besides the sky is cheap. Oh, yes, then spend you hard earned rebate you were owed anyway on your little one’s care.

3. more - September 10, 2012

Somebody necessarily assist to make significantly posts I’d state. This is the very first time I frequented your web page and up to now? I amazed with the analysis you made to make this actual submit amazing. Magnificent task!


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