2001 only overlooked tax rebate
Sep 30 '01 (Updated Jan 10 '02)
The Bottom Line If you didn't receive your full prebate in 2001, you can try again in 2002.
Most of you (who are US citizens or permanent residents, and filed their 2000 tax returns on time) have received your tax prebate*. For those of you who didn't qualify in 2000, you have a chance to try again in 2001.
* Prebate: It's an advance rebate of your 2001 taxes. What would you call it?
A quick summary of the prebate rules: You receive the least of:
1. The tax due (ignoring any refundable credits) on your 2000 return.
2. 5% of your taxable income as reported on your 2000 return. This is line 39 if you filed form 1040.
3. $600 if your filing status was Married Filing Joint or Qualifying Widow(er), $500 if your filing status was Head of Household, and $300 if your filing status was Single or Married Filing Separate.
4. $0 if you are not a US citizen or permanent resident, or are eligible to be taken as a dependent on someone else's 2000 return.
5. $0 if you didn't file your 2000 tax return in time for the IRS to calculate and send your prebate before the end of 2001. (The law does not allow any checks to be sent after December 31.)
For 2001, you may calculate the least of:
1. The tax otherwise due (ignoring any refundable credits and this credit) on your 2001 return.
2. 5% of your taxable income on your 2001 return.
3. $600 if your filing status is Married Filing Joint or Qualifying Widow(er), $500 if your filing status is Head of Household, and $300 if your filing status is Single or Married Filing Separate.
4. $0 if you are not a US citizen or permanent resident, or are eligible to be taken as a dependent on someone else's 2001 return, unless Congress passes the technical corrections bill. There was an "intent of Congress" resolution already passed to state that they didn't intend this restriction to apply for 2001 returns filed in 2002, but they didn't do it write it right (ummm, draft it correctly).
If this amount exceeds the prebate you received (ignoring tax interception), you can take the difference on your 2001 tax return filed in 2002.
That is, if you don't overlook this line in the instructions.
(Edited 1/10/02 to change a number. Bonus points for guessing which one.)
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