Recently federal lawmakers approved the 2007 tax rebates for middle & low income households. What this means for many households is a nice little rebate to come about the middle of this year. This is good news for me as I will most likely use the rebate money to pay off the remainder of my debt, or if anything else use the money to help prepare for the coming of our second child in August. Of course I could always use the money for savings, or place into my son’s savings account for college.

Here is a part of the article:

Rebates: What you need to know

By Jeanne Sahadi, CNNMoney.com senior writer

Lawmakers have given their final seal of approval to a $170 billion plan intended to spark the slowing economy.

The plan’s centerpiece: tax rebates.

But questions remain about how the program will work, and officials at the Treasury Department and IRS are scurrying to work out the details.

Do I qualify for a rebate and how much can I expect?One-time rebates will be sent to at least 117 million low- and middle-income households, 20 million senior citizens living off of Social Security, and 250,000 disabled veterans.

To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.

Adjusted gross income is not your annual salary. It’s equal to gross income minus “above the line deductions,” which are reported on page 1 of the 1040 tax form. Above-the-line deductions include deductible IRA contributions, alimony paid and, for the self-employed, some portion of money spent on health insurance or Social Security.

Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200.

In addition, parents will also receive $300 rebates per dependent child; there is no cap on the number of children eligible.

An example: A couple with one child and $100,000 in AGI will get a rebate of $1,500 ($1,200 + $300). If they have two children, they will get $1,800 ($1,200 + $600).

Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income – which can include Social Security and disability payments – will get $300 rebates per person or $600 per couple.

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