Examples of how the rebate works

from www.irs.gov

Married with Children

1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

2) Married couple with two children, no wages, veterans' payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

3) Married couple with two children, no wages, no social security benefits, veterans' payments of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

4) Married couple with two children, no wages, no social security benefits, no veterans' payments, AGI is $25,000, federal income tax liability before child tax credit is $70.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

5) Married couple with two children, AGI is $35,000, federal income tax liability before child tax credit is $1,070.
Individual rebate is $1,070
Qualifying child credit is $600
TOTAL is $1,670

6) Married couple with two children, AGI is $80,000, federal income tax liability before child tax credit exceeds $1,200.
Individual rebate is $1,200
Qualifying child credit is $600
TOTAL is $1,800

7) Married couple with two children, AGI is $160,000, federal income tax liability before child tax credit exceeds $1,200.
Individual rebate is $1,200
Qualifying child credit is $600
Phaseout reduction is ($500)
TOTAL is $1,300

Married w/out qualifying children

1) Married couple with no children, wages of $4,000, no federal income tax liability.
Individual rebate is $600

2) Married couple with no children, no wages, veterans' payments of $2,000, social security benefits of $2,000, no federal income tax liability.
Individual rebate is $600

3) Married couple with no children, no wages, no social security benefits, veterans' payments of $4,000, no federal income tax liability.
Individual rebate is $600

4) Married couple with no children, no wages, no social security benefits, no veterans' payments, AGI is $20,000, federal income tax liability is $250.
Individual rebate is $600

5) Married couple with no children, AGI is $25,000, federal income tax liability is $750.
Individual rebate is $750

6) Married couple with no children, AGI is $60,000, federal income tax liability exceeds $1,200.
Individual rebate is $1,200

7) Married couple with no children, AGI is $160,000, federal income tax liability exceeds $1,200.
Individual rebate is $1,200
Phaseout reduction is ($500)
TOTAL is $700

Single (Head of Household) w/children

1)     Single parent with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900

2)     Single parent with two children, no wages, veterans' payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900

3)     Single parent with two children, no wages, no social security benefits, veterans' payments of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900

4)     Single parent with two children, no wages, no social security benefits, no veterans' payments, AGI is $20,000, federal income tax liability before child tax credit is $195.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900

5)     Single parent with two children, AGI is $22,000, federal income tax liability before child tax credit is $395.
Individual rebate is $395
Qualifying child credit is $600
TOTAL is $995

6)     Single parent with two children, AGI is $60,000, federal income tax liability before child tax credit exceeds $600.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

7)     Single parent with two children, AGI is $90,000, federal income tax liability before child tax credit exceeds $600.
Individual rebate is $600
Qualifying child credit is $600
Phaseout reduction is ($750)
TOTAL is $450

Single w/out children

1) Individual with wages of $4,000, no federal income tax liability.
Individual rebate is $300

2) Individual with no wages, veterans' payments of $2,000, social security benefits of $2,000, no federal income tax liability.
Individual rebate is $300

3) Individual with no wages, no social security benefits, veterans' payments of $4,000, no federal income tax liability.
Individual rebate is $300

4) Individual with no wages, no social security benefits, no veterans' benefits, AGI is $10,000, federal income tax liability is $125.
Individual rebate is $300

5) Individual with AGI is $12,000, federal income tax liability is $325.
Individual rebate is $325

6) Individual with AGI is $35,000, federal income tax liability in excess of $600.
Individual rebate is $600

7) Individual with AGI is $80,000, federal income tax liability in excess of $600.
Individual rebate is $600
Phase out reduction is ($250)
TOTAL is $350