WHO'S Getting a Rebate from the FEDS?

February 16, 2008

Let's get those 2007 tax returns filed! Your rebate might depend on it (and other things of course).

Stimulus Package Includes Help for the Housing Market
Just in time for Valentine's Day, President Bush signed legislation to jump start the struggling U.S. economy by putting tax rebate checks ranging from $300 - $1,200 in the pockets of millions of Americans and providing incentives for businesses.

The $168 billion economic stimulus package also included provisions to help the troubled housing market, a top National League of Cities legislative priority. The package raises temporarily the limit on Federal Housing Administration - insured loans from $362,790 to $729,750, as well as the limit on loans that Fannie Mae and Freddie Mac can purchase from $417,000 to $792,750. Changes in these limits are intended to ease the credit crunch in the market for "jumbo" mortgages, which are often necessary in high-cost housing markets. The crunch, a fallout from the subprime mortgage collapse, has made it difficult, if not impossible for homebuyers in those markets to get new mortgages or refinance existing ones.

As far as who will receive a rebate check, most people who earned at least $3,000 in qualifying income during 2007, including through Social Security or veterans' disability benefits will receive a rebate of up to $600 for individuals and $1,200 for couples, with an additional $300 for each child. Single individuals making more than $75,000 and couples with income more than $150,000 will get smaller checks, up to the top limits of $87,000 for childless individuals or $174,000 for couples. To get any rebate, a 2007 tax return with a valid Social Security number must be filed. (Carolyn Coleman, coleman@nlc.org, 202.626.3023)