Tuesday, February 12, 2008
Nannies: File for Tax Rebates
The media reports that President Bush is expected to sign the economic stimulus bill on Wednesday, February 13. What does this mean for nannies?
Most nannies will qualify for a rebate of $600, or $1200 if filing jointly, providing of course that the nanny paid at least that much in Federal income tax in 2007. If a nanny's 2007 federal tax liability is between $300 and $600 (single) or $600 and $1,200 (married), her rebate will be equal to whatever she paid in tax.
What about nannies who did not pay income tax? Any nanny who earned $3000 or more in 2007 qualifies for a flat rebate of $300 - this includes most summer nannies. There is a catch - you have to file a 2007 income tax return, even if no tax is due, to qualify for the rebate.
Included in the package is a $300 per child rebate, providing the child is 17 or younger on December 31, 2008. All taxpayers and children must have a Social Security Number (SSN) to qualify for the rebates. Taxpayers filing with Individual Taxpayer Identification Numbers (ITINs) do not participate.
The IRS will begin sending out rebate checks in May - but you have to have filed your tax return to qualify. If you file for an extension to file, you will not receive your rebate until your final 2007 tax return has been processed by the IRS.
These tax rebate checks are actually a 2008 tax cut, and are being paid early based on 2007 tax returns. If you qualify for a larger rebate when you eventually file your 2008 tax returns, you will receive the balance next spring.
Most nannies will qualify for a rebate of $600, or $1200 if filing jointly, providing of course that the nanny paid at least that much in Federal income tax in 2007. If a nanny's 2007 federal tax liability is between $300 and $600 (single) or $600 and $1,200 (married), her rebate will be equal to whatever she paid in tax.
What about nannies who did not pay income tax? Any nanny who earned $3000 or more in 2007 qualifies for a flat rebate of $300 - this includes most summer nannies. There is a catch - you have to file a 2007 income tax return, even if no tax is due, to qualify for the rebate.
Included in the package is a $300 per child rebate, providing the child is 17 or younger on December 31, 2008. All taxpayers and children must have a Social Security Number (SSN) to qualify for the rebates. Taxpayers filing with Individual Taxpayer Identification Numbers (ITINs) do not participate.
The IRS will begin sending out rebate checks in May - but you have to have filed your tax return to qualify. If you file for an extension to file, you will not receive your rebate until your final 2007 tax return has been processed by the IRS.
These tax rebate checks are actually a 2008 tax cut, and are being paid early based on 2007 tax returns. If you qualify for a larger rebate when you eventually file your 2008 tax returns, you will receive the balance next spring.
Labels: nanny income tax rebate, nanny tax rebate
