It's kind of disappointing to hear that the current talk of a tax rebate has an income cut-off. I know I would have used my check to be stimulated by a lovely lady.
Not that I think all hobbyists are above the cut-off of income for this tax break but it does take a reasonable income to participate in the hobby on a regular basis.
And some of us just participate on a somewhat irregular basis, sometimes a little longer between visits than we'd like.
but the point at which the rebates begin to get trimmed back, also, having dependents may increase that point.
Does anyone know what the actual schedule is yet or have a URL to find it?
I'd like to be able to budget my hobbying expenses.
The last I read was that the rebates would "gradually diminish" from $75,000 to the cut off point of $150,000. That was for a single taxpayer. It didn't say what it would be in the case of a couple filing jointly, but it did say that a couple would get $1200 for income up to $150,000, but nothing was said above that amount.
Nothing is really final and the information I have seen is a bit conflicting but more than one source I read said you will get nothing if you made over $87K and the phase out starts at $75K.
In today's economy it would be hard to hobby frequently at $75K if you don't want go into debt, pay your bills on time or don't receive some kind of cash windfall from something like an inheritance.
to immediately and foolishly spend any and all monies sent to me in the form of a rebate.
I can get behind that.
Tax Rebate Checks. Rebates would be provided for income tax paid in 2007, with a maximum of $600 for individuals and $1,200 for couples. A minimum of $300 per individual and $600 for couples would be available for those with at least $3,000 of earned income. All eligible recipients also would receive a child tax credit of $300 per child, with no limit on the number of children. Rebates would phase out for those with adjusted gross incomes above $75,000 for individual filers and $150,000 for joint filers. [you lose 5% of the rebate for every $1,000 of income above these limits - i.e. at $95,000 and $170,000 you get zilch - but since we have a budget deficit and this adds to the national debt - you'll get to help pay for it]
EXAMPLES
Ex 1. John Doe had a job for part of the year, earning $9,000. He has custody of two children. He owed no federal income taxes for 2007. Under the proposal he would be eligible for a Base Amount of $300 for himself (because his earned income was at least $3,000). His earned income would also be sufficient to get a $300 Children's Bonus for each of his two kids, for a total of $900.
Ex. 2. Mr. and Mrs. Smith both worked part-time in 2007 and have two children. After application of available deductions and credits, they had a federal income tax liability of $500 for 2007. Under the proposal, they would be better off with Base Amount of $600 for a couple (for which they qualify, because their earned income was more than $3,000). They would therefore also have enough earned income to qualify for a Children's Bonus of $300 for each of the five children. Thus, their total check would be $1,200.
Ex. 3. Mr. and Mrs. Jones have five children. After taking available credits and deductions, their 2007 taxable income was $95,000, leaving them with a federal income tax liability of just over $16,600. Under the proposal, they would get the full Base Amount of $1,200. They would also qualify for a Children's Bonus of $1,500, bringing their total check to $2,700.
Ex. 4. Mr. and Mrs. Senior are retired. As a result of their investment income, the couple paid $4,000 in federal income taxes in 2007, meaning they would get the full base amount of $1,200. They had no dependent children, so there is no Children's Bonus.
Ex. 5. Mr. and Mrs. Ipo have one child. They were able to retire young but still collect dividends and capital gains from a business they sold a few years ago. The couple paid $19,000 in federal income taxes on that income in 2007. They would therefore qualify for the Base Amount of $1,200. They would also qualify for a Children's Bonus of $300, because they paid at least $1 of federal income tax in 2007 (even though they had no earned income), for a total check of $1,500.
Ex. 6. Mr. and Mrs. Withers are lawyers, with a combined income in 2007 of $300,000. They have four children. Because their AGI is over $150,000, they are disqualified from receiving either the Base Amount or the Children's Bonus. They would not receive a check.
rather than total income is the deciding factor, so why would they get any rebate?
Or is that report about earned income incorrect?
Thank you for the extensive explanation by the way. I do appreciate it.
The fact that those of us who actually pay the taxes will get little or no rebate while those who pay nothing will is not surprising...what do you expect from Democrats? $87.5K in places like NYC is not rich... $200K here is not rich!
I don\'t think Bernanke is a hobbyist.
FULL-SERVICE bank! LOL!
you've ever been royally screwed by one of them.