In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of ways the Economic Stimulus Act of 2008 may affect taxpayers who are married, file a joint return and are either childless or do not have children who qualify for child tax credit payment:
1) Married couple with no children, wages of $4,000, no federal income tax liability.
Rebate is $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.
Rebate is $600
3) Married couple with no children, no wages, no social security benefits, veterans payments of $4,000, no federal income tax liability.
Rebate is $600
4) Married couple with no children, no wages, no social security benefits, no veterans payments, AGI is $20,000, federal income tax liability is $250.
Rebate is $600
5) Married couple with no children, AGI is $25,000, federal income tax liability is $750.
Rebate is $750
6) Married couple with no children, AGI is $60,000, federal income tax liability exceeds $1,200.
Rebate is $1,200
7) Married couple with no children, AGI is $160,000, federal income tax liability exceeds $1,200.
Rebate is $1,200
Phaseout reduction is ($500)
TOTAL is $700
Yeah, that's what you think...
