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Quick Facts: Fiscal Stimulus,
Table 1. Advance Rebate Calculations for Single Taxpayers

The following examples assume that all income comes from earnings, Social Security, and veteran’s payments. Applicable income for advance rebates is that shown on 2007 tax returns. All units claim the standard deduction and only the regular personal and dependent exemptions.

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Underlying Data

Childless individual:
Income less than $3,000:no rebate
Income between $3,000 and $11,750:$300
Income between $11,750 and $14,750:$300 plus 10% of AGI over $11,750
Income between $14,750 and $75,000:$600
Income between $75,000 and $87,000:$600 less 5% of AGI over $75,000
Income $87,000 or higher:no rebate
Single parent with one child:
Income less than $3,000:no rebate
Income between $3,000 and $17,650:$600
Income between $17,650 and $20,650:$600 plus 10% of AGI over $17,650
Income between $20,650 and $75,000:$900
Income between $75,000 and $93,000:$900 less 5% of AGI over $75,000
Income $93,000 or higher:no rebate
Single parent with two children:
Income less than $3,000:no rebate
Income between $3,000 and $21,050:$900
Income between $21,050 and $24,050:$900 plus 10% of AGI over $21,050
Income between $24,050 and $75,000:$1,200
Income between $75,000 and $99,000:$1,200 less 5% of AGI over $75,000
Income $99,000 or higher:no rebate
Single parents, more generally:
Income less than $3,000:no rebate
Income between $3,000 and Amount A:$300 plus $300 per child
Income between Amount A and Amount A plus $3,000:$300 plus $300 per child plus 10% of AGI over Amount A
Income between Amount A plus $3,000 and $75,000:$600 plus $300 per child
Income between $75,000 and Amount B:$600 plus $300 per child less 5% of AGI over $75,000
Income Amount B or higher:no rebate

Phase-in begins at Amount A = $14,250 plus $3,400 for each child
Phaseout ends at Amount B = $87,000 plus $6,000 for each child

Examples

  • Single mother with two children and $22,050 of earnings:: rebate equals $600 (limited to her income tax liability before child and earned income credits) plus $300 for each child. Her taxable income equals her earnings of $22,050 minus a standard deduction of $7,850 minus three exemptions of $3,400 each, or $4,000. Her tax is 10 percent of that amount, or $400. Her rebate is thus $400 (the $600 maximum reduced to her $400 tax liability) plus $600 ($300 for each child), or $1,000.
  • Single elderly individual whose only income is $20,000 of Social Security benefits:: rebate equals $300 because the individual has more than $3,000 of income from Social Security. She does not qualify for the basic $600 benefit because she has no income tax liability.
  • Single individual with $2,500 of Social Security benefits and $5,000 of investment income: the individual qualifies for no rebate. His income from earnings, Social Security, and veteran’s payments is less than $3,000 and he has no income tax liability.
  • Single mother with two children and adjusted gross income of $85,000: her rebate of $1,200 ($600 for her plus $300 for each child) is reduced by 5 percent of the amount by which her AGI exceeds $75,000. That excess equals $10,000, 5 percent of which is $500. Her rebate is thus $1,200 minus $500, or $700.
  • Single mother with two children and adjusted gross income of $100,000: her rebate of $1,200 ($600 for her plus $300 for each child) is reduced by 5 percent of the amount by which her AGI exceeds $75,000. That excess equals $25,000, 5 percent of which is $1,250. She gets no rebate because the $1,250 reduction exceeds her maximum benefit of $1,200.


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