Here are some details from the stimulus plan just signed by Bush.
Most people who pay federal income taxes will get up to $600 for individuals, or as much as $1,200 for married couples, with an additional $300 per child. The amounts begin to phase out for incomes above $75,000 for individuals and $150,000 for married couples who file jointly. The amount of the credit “is phased out at a rate of 5% of adjusted gross income beginning at $75,000 ($150,000 in the case of joint returns).”
Essentially, 5% of the dollar amount above the applicable cap, about $50 for each $1,000 above the cap.
An example:
A married couple with no kids and AGI for 2007 of $140,000 typically would get $1,200. A married couple with the same income, with three kids under 17, would get $2.100. A married couple with the same income, with 6 kids, would get $3,000.
For a phase out scenario:
You’re married and file jointly, have no kids, and your adjusted gross income for 2007 was $170,000. In this case, you would receive $200 back. Why? Your income was $20,000 over the cap. Multiply $50 times 20. That’s $1,000. Subtract that from the $1200 per couple and what is left is the $200
Many low-income Americans who pay little or no federal income tax will get something, too. To get a payment this year, you have to file a tax return for 2007.
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What are the chances that the IRS will discover there are more children in the U.S. than the Census reports?