You must possess some basic prerequisites to be eligible for the tax rebate. The Internal Revenue Service says, "To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return" [source: IRS].
Now for the explanations, exceptions and adjustments.
- Taxpayers with Individual Taxpayer Identification numbers (ITINs) rather than Social Security numbers are not eligible.
- Nonresident aliens won't get the rebate, as they cannot obtain Social Security numbers.
- If you want to claim children under the age of 17, they must also have a Social Security number. Visit the Social Security Administration website if your child doesn't have one.
- To be eligible for the rebate, you must have at least $3,000 of income.
- At the high end, your Adjusted Gross Income (AGI), which is your taxable income minus certain deductions, must not exceed specified caps to receive the full rebate.
- If you file single, married and filing separately, or head of household, your rebate will be reduced if your adjusted gross income is over $75,000 per year.
- If you file married and filing jointly, your rebate will be reduced if you make a combined $150,000 in adjusted gross income.
- Wages, salaries, tips, Social Security, some Railroad benefits, self-employment income and veterans' disability income count toward income requirements. Rental real estate income, pension income and Supplemental Security Income (SSI) don't count.
- If either pension or SSI is your only income, you won't be eligible for the tax rebate, even if this income exceeds the minimum of $3,000.
- Even if you meet all other qualifications, if you don't file a 2007 federal income tax return, you won't receive the tax rebate.
- So now that you know whether you qualify, find out how much you could be getting on the next page.