How Rebates Would Phase Out

For higher-income taxpayers, rebates would phase out gradually as income rises.

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The economic stimulus plan agreed to by House leaders and the White House would give rebates of up to $600 for single taxpayers and $1,200 for married couples. But the rebates would gradually phase out for singles with incomes above $75,000 and couples with incomes over $150,000. Five percent of income above those amounts would be deducted from the rebate, according to the House Ways and Means Committee. Here's how taxpayers would be affected:

For single taxpayers:

Income* Size of Rebate
$75,000 $600
$80,000 $350
$85,000 $100
$87,000 0

*2007 adjusted gross income

For married-couple taxpayers:

Income* Size of Rebate
$150,000 $1,200
$160,000 $700
$170,000 $200
$174,000 0

*2007 adjusted gross income

For a married couple
with two children:

Income* Size of Rebate
$150,000 $1,800
$160,000 $1,300
$170,000 $800
$180,000 $300
$186,000 0

*2007 adjusted gross income

Those who earn $3,000 or more but pay no federal income taxes would receive rebates of $300 for singles and $600 for married couples.

Updated on 1/25/08