How big could your tax rebate be?

By MarketWatch

As much as $2,100 in tax rebates could be on its way to a married couple with three children if Congress agrees on the final details of the proposed $150 billion fiscal stimulus package, according to early congressional estimates.

More than 117 million American families would receive tax rebates of up to $1,200 if the proposed bill becomes law. Individuals with adjusted gross income of up to $75,000 would be eligible for a $600 rebate, while married couples filing jointly with an AGI up to $150,000 would receive $1,200. After those income levels, the rebates would start phasing out. Taxpayers with children would receive an additional $300 per child.

Meanwhile, workers who didn't earn enough to pay income tax but had earned income of at least $3,000 would be eligible for a $300 rebate, or $600 for couples filing jointly. The checks would be sent out automatically; you don't need to apply.

But don't expect the rebates anytime soon. While the president and leaders of the House of Representatives have agreed on a stimulus package, the House and Senate both need to vote on the package.

If a law is enacted, it will take about two months for the Internal Revenue Service to start sending out checks -- if things go well. The timing of the stimulus package means the tax agency will be addressing this issue during the busiest time of the regular filing season.

"Checks will start going out 60 days after the legislation is enacted. It will take approximately 10 weeks to issue all of the checks. There might be delays on both because of the two weeks at the end of the filing season that are very high traffic for the IRS," said Andrew DeSouza, a spokesman with the U.S. Treasury, in an e-mail message.

Others agreed delays are likely. First, "Congress has to actually pass it," said Mark Luscombe, a principal analyst with CCH Inc. a Riverwoods, Ill., tax publisher. "Beyond that, it's a question of the IRS gearing up to get these checks out, and the IRS doesn't gear up very quickly to do things like that. They're in the middle of return filing season right now, which has already been delayed from legislation in December."

Worth the wait?

Still, some families might find it worth the wait. Here are some preliminary scenarios provided by Rep. John Boehner, R-Ohio:

Example: John Doe had a job for part of the year, earning $9,000. He has custody of two children. He owed no federal income taxes for 2007. Under the proposal he would be eligible for a base amount of $300 for himself (because his earned income was at least $3,000). His earned income would also be sufficient to get a $300 children's bonus for each of his two kids, for a total rebate of $900.

Continued: 3 more examples

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