$300 to $600 Variable Economic Stimulus Calculation

Up to this point it appeared that you would either receive $300 or $600 (double for married) as part of the economic stimulus plan. $300 if you owed no taxes, $600 if you did. According to the fact sheet just released by the IRS, (FS-2008-15) this is not the case.

The fact sheet gives examples of how the economic stimulus rebate will work. The only folks getting the full $600 will be those who paid at least $600 in taxes. It appears the only thing that will not offset this $600 is the child tax credit.

So, a married couple within the income limits who owe $1500 in taxes before applying the child tax credit would receive a $1200 rebate plus $300 for each kid under 17. If they only owe $700 then they will only receive $700 plus $300 per kid. If they are lucky enough to only owe $200 then they will still receive $600 (wealth redistribution factor).

So, with 4 kids under 17 I will receive $1200 plus at least $600 and possibly $1200 since the the child tax credit ($4,000) does not reduce the calculation for this rebate.