Tax refund - education credit?

Question

I made about 21,000 last year, and was a graduate student at night.

I just received my tax rebate for $360 - I was expecting $600 but I'm wondering if the amount was less because I received an education credit (I filed for and received an education credit)?

Thank you for any info!

Answer 1

VB is correct.  If you look at your tax return, you will see that your tax liability was probably $360.  To find your tax liability in regard to the economic stimulus prebate, look at:

1040:      Line 57 plus Line 52

1040A:   Line 35 plus Line 32

1040EZ: Line 10

So, you can see that the Credit you got for education (line 49) "hurt" your rebate.

However, don't fret.  All is not lost!

The rebate is really for 2008.  The rebate is really supposed to come when you do your 2008 tax return in early 2009.  Congress just advanced you the money now to get the economy stimulated, as you can see with the 300 point drop in the DOW today (sarcasm).

So, when you do your 2008 tax return, if you have more than a $600 tax liability, your rebate will be $600 minus what you got so far ($360) or $240.  Yes, you'll get a 2nd credit of $240 next year when you do your tax return.  If your 2008 tax liability is between $360 and $600, your credit will be the difference between what you got and your liability.  If it is less, you won't owe anything back.  Example:

2008 tax liability  -  additional credit

$1000                          $240

$600                            $240

$500                            $140

$410                            $50

$360                            $0

$200                            $0

Answer 2

The range of the rebate check was $300 to $600.

You paid only $360 in tax (yes, the education credit reduced your tax bill), so that's all you got.

Answer 3

The education credit would have reduced your tax liability.  If your tax liability AFTER the credit was under $600 then your rebate would be reduced - it sounds like your tax liability after the credit was only $360, so you got a 100% refund.