Tax Rebate Check

One of the ways the 2001 tax relief eases your tax burden is by creating a new 10% tax bracket, which represents a 5% rate cut below the old 15% tax bracket.

In simple terms, everyone who used to see some of his or her income taxed at the 15% tax rate now sees some or all of that income taxed at 10% instead. If you are married filing a joint return, the new 10% bracket applies to the first $12,000 of your taxable income. That's a tax savings of 5% x 12,000, which is $600. If you are single, the new 10% bracket applies to the first $6,000 of your taxable income. That's a tax savings of 5% x 6,000, which is $300. Different rules apply to the other filing statuses.

Rather than build the new 10% rate bracket into the 2001 tax tables, Congress decided that it would be better to mail every eligible taxpayer a check representing the projected 2001 tax savings.

These checks were mailed out in the fall. Enter the amount you received here. If it is less than your share of the 2001 tax relief according to the numbers you have entered in this tax estimator, we will calculate a credit to make up the difference.