Going into Hiding

From what I am hearing and seeing, a lot of tax payers are going to get a surprise when they get their rebate check. And they won't like it. I may have to hide out somewhere come May to save my sanity.
I received a call this morning from a client who wanted to know if I had filed for his rebate when I filed his regular return. I explained that he was okay since the rebate was based on the return he had filed. And did he want to know what to expect? After a quick calculation, I told him $900. There was silence and then "What, I'm supposed to get $1500. Did you file me married? That's not right!" After he calmed down, I told him that he was filed as married and with one child and that was the correct amount of rebate for his income. Even after an explanation of the calculation, I don't think I convinced him that I was right. This was the first explosion but I expect to hear more of them.
Six weeks ago I posted about why I don't like tax rebates. I Hate These Things. One of the reasons was dealing with the clients, like the one who called this morning expecting a larger check. It happened with the  previous tax rebates. Taxpayers hear the broad stokes of the plan and don't listen to the details. And this time, the media had rebate calculators out before the bill was signed and many were wrong when it came to dependents. There are 3 issues that can result in a lower than expected rebate.

1. Little or tax on the return. If your exemption, deductions and non-refundable credits (except for Child Tax Credit) leave you with less than $600 ($1200 for married couple) in tax. Then you will get the lower of $300 or the actual tax on the return.
2. The age of your dependents. Congress tied eligibility for the addition money for children to the Child Tax Credit. If the dependent turned 17 in 2007, they don't qualify you for more money.
3. Too much income. If your income is over $75,000 ($150,000 for married couple) then the rebate will be phased by 5% of the income over the threshold.

Don't forget that like a tax refund, these rebates can be taken for back taxes, child support, or being in default on a student or VA loan.
Now where should I hide until this is over?

Comments

[Rick Telberg]

Trish...

You've done the whole profession a real service with this post. You can go into hiding, but, please, don't stop blogging. It's a wonder you find the time during busy season. You're an inspiration!

Thanks!
--- rick