Question about the tax refund

[XMan]

We were discussing this at work today, and there is a bit of confusion.

I thought that single persons get $300, married couples $600, and single filing as head of household $500.

A couple other people thought that it was a percentage of the taxes paid up to the amounts above. Which is it?

 

[Kanly]

From the
L.A. TIMES
If you paid federal income tax in 2000--or owed federal income tax before accounting for the earned income tax credit--you are due a check.

Although the checks technically are an advance refund of tax overpayments that you're sure to make this year--given the higher tax rates that were in effect before the tax cut was passed last month--the checks are based on last year's tax rolls.
That means some people who retired or lost their jobs this year will get refunds they didn't earn, thanks to taxable income they reported in 2000. But former students, homemakers and others who reported little or no income in 2000 may not get checks because they didn't make enough money last year to qualify.
Q: How much will I receive?
A: The amount of your check should equal the lesser of 5% of your 2000 taxable income or $300 if you're single; $500 if you file as a head of household; or $600 if you're married and file a joint tax return.
The IRS estimates that about 95 million of the nation's roughly 125 million taxpayers will qualify.
Q: How about an example?
A: Let's say you're single and earned $12,000 last year. After subtracting the standard deduction and personal exemptions in effect at that time, you had taxable income of $4,800. You'd get 5% of that, or $240. If you earned $20,000 and had taxable income of $12,800, you'd get $300. That's because 5% of your taxable income would amount to $640, but you get the lesser of that, or $300, based on your single filing status. Text

 

[Spook]

I'm not sure... But we discussed this briefly at work too... And this blanket tax refund is a big crock....

Sure its nice to get money back, but... Is some punk kid who works part time going to get the same $300 I will.... I probably paid more in taxes than this kid earns, but I'm getting the same $300...

I would say a blanket percentage return, not a blanket $300 would be in order...


Anyway that's my $.02...

Spook

 

[jjm]

Pay attention folks. The reason you are getting this is because it will be equal to an early refund you might otherwise have gotten after you filed your taxes next year. That's all. Bottom line is that some rates start declining, but because you get some of the refund now, you will get a smaller refund next April. And you should start seeing a tiny bit less taken out of your pay check eventually too.