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How do I know how much tax liability I have to qualify for rebates?

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Look at your 1040 and line 63. If you total federal tax liability is greater than $7500 then you will get the full $7500 credit, if it is less, the you will receive a credit up to that amount. If you withheld enough taxes during the year equal or greater to line 63 (you're expecting a refund) then that $7500 credit will be added to your refund check.
 
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Did you owe tax last year?
No, I received a refund.

Look at your 1040 and line 63. If you total federal tax liability is greater than $7500 then you will get the full $7500 credit, if it is less, the you will receive a credit up to that amount. If you withheld enough taxes during the year equal or greater to line 63 (you're expecting a refund) then that $7500 credit will be added to your refund check.

Great! this is what I needed. Yes, line 63 shows way more than $7500. So I don't have to necessarily owe taxes each year as long as my tax on line 63 is greater than the credit correct?
 
That is correct. Whether you had to pay or received a refund at the end of the year means nothing to the eligibility of the $7500 credit.

If you owe $8000 at the end of the year the $7500 credit will reduce that tax bill down to $500. If you were expecting a refund of $1000 and your line 63 is greater than $7500, then your tax refund will be $8500.
 
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No, I received a refund.



Great! this is what I needed. Yes, line 63 shows way more than $7500. So I don't have to necessarily owe taxes each year as long as my tax on line 63 is greater than the credit correct?

A tax refund just means you withheld more money from your paycheck than you actually ended up owing at the end of the year. It doesn't mean you didn't have to pay any taxes that year.