Six Weeks

There are 6 weeks left to get your 2007 taxes filed and be part of the first wave to receive rebate checks that are now expected to hit mailboxes in early May!

According to The Kiplinger Tax Letter, you will reconcile your rebate on your 2008 tax returns. Technically the rebate will equal the tax credit allowed.

Taxpayers whose credit exceeds their rebate will claim the balance on their 2008 tax returns a year from now. If the rebate was bigger than the credit, you will repay the IRS on your '08 return.

The question still stands if the states will consider these checks as taxable income. In the past, each state made its own decision and a few states taxed the federal rebates.

Keep your notice from the IRS regarding your '08 rebate. You will need the exact amount for next year's tax return. Amounts of the rebate checks decline as income levels go up, fading out completely at $150,000 per couple and $75,000 for singles.

'til later