Rebates are back in the news in a big way.

The U.S. Treasury began issuing rebates by direct deposit last week, and plans to start mailing rebate checks on Friday.

Retailers are offering special rebate-related promotions, and charities are angling for a piece of the action, too.

Overall, the Treasury plans to distribute more than $107 billion in rebates this year to more than 130 Americans.

But amid the hoopla, it’s important to remember that some people will receive a reduced rebate amount, or none at all, as the following question from a man in Coventry shows:

Q: My wife and I made $157,000. I wondered how much [of a rebate] we would be getting back, if we get any at all.

— K.K., Coventry

A: You’ll probably receive $850. Here’s why:

If your adjusted gross income exceeds a certain amount, your rebate may be reduced — perhaps to zero, said Patricia A. Thompson, former president of the Rhode Island Society of Certified Public Accountants.

(Adjusted gross income, also known as AGI, is a figure found on the front of your federal income-tax return, toward the bottom.)

In general, your rebate will be reduced by 5 percent of the amount by which your adjusted income exceeds a certain threshold, said Thompson, who is also tax partner at Piccerelli Gilstein & Co. LLP, a CPA firm in Providence.

That threshold is $150,000 if you’re married and filed a joint return for 2007. If you used another “filing status” on your return, such as “single” or “head of household,” the threshold is $75,000.

To see how this works, let’s use some of the information you provided in your call to MoneyLine. Suppose you’re married, filed a joint return, and your adjusted gross income was $157,000 for last year. Let’s also assume that you have no young children, and you’d like to receive the maximum rebate of $1,200.

But because your income exceeds the threshold by $7,000, your rebate will be reduced by $350. (That’s because 5 percent of $7,000 is $350.) So in this example, your $1,200 rebate will be cut by $350, leaving you with a rebate of $850.

Suppose, instead, that you’re single with adjusted gross income of $80,000. You have no young children, and you’d like to receive the maximum rebate of $600. But because your AGI is $5,000 over the threshold, your rebate will be cut by $250, leaving you with a rebate of $350.

The calculation is a bit more complicated if you have young children. That’s because, for each child you have who was under 17 as of Dec. 31, 2007, you’re generally eligible for an additional rebate amount of $300.

So now let’s say you’re married, filed a joint return, have two young children and AGI of $160,000. Normally, you’d receive a rebate of $1,800.

But because your AGI is $10,000 above the threshold, your rebate will be reduced by $500. Thus, instead of receiving $1,800, you’ll have a $1,300 rebate.

Q: Our 18-year-old son worked during the summer and filed a separate income tax; his income [was] $3,153. We, of course, [claimed] this full-time college student as a dependent on our taxes this year as well. We should qualify just fine [for a rebate]. But will he also receive a separate $300 [rebate]? And how will that affect us as a family of four? Frankly, we just don’t want to get something we have to send back. . . .

— G.M., Warwick

A: Your son won’t be eligible for a rebate. Here’s why:

The federal economic stimulus law — which made the rebates possible — says that someone who was claimed — or could have been claimed — as a dependent on another’s federal income-tax return for 2007 isn’t eligible for a rebate.

Thus, a high school or college student who was claimed, or could have been claimed, as a dependent on a parent’s return for 2007 is not eligible for a rebate, said Internal Revenue Service spokeswoman Peggy Riley.

That’s true even if the student works, pays taxes and files a return, Riley said. (Your son probably filed a return to obtain a refund of tax that was withheld from his paycheck last year.)

What about that additional rebate amount of $300 mentioned above? Can you, as a parent, obtain that rebate amount on behalf of your 18-year-old son?

No, Riley said. You may obtain that extra $300 only for a child who was under 17 as of Dec. 31, 2007, she said.

As for the rest of your question to MoneyLine, you may be able to obtain that extra $300 rebate amount for any of your other children who were under 17 as of Dec. 31, 2007.

And you won’t have to worry about the calculation or giving any of your rebate back; the IRS will figure your rebate amount based on the information you provided on your return.

(The IRS will also soon mail you a notice letting you know how much of a rebate you’ll receive and when you’ll receive it, based on personal your circumstances.)

There are others who will receive either a reduced rebate or no rebate at all. For example:

•The “offset” rules that apply to federal income-tax refunds also apply to rebates. As a result, your rebate may be reduced — or even eliminated — if you’re delinquent on federal income taxes, state income taxes, federally backed student loans, or child support payments.

•You may receive a rebate only if you have a valid Social Security number issued to you by the Social Security Administration. You’re not eligible for a rebate if you have a taxpayer identification number issued by the IRS (such as an ITIN).

• If you’re retired or otherwise don’t file a return because your income is too low, special rebate rules apply. In general, you may still be eligible for a rebate if you had at least $3,000 in “qualifying income” last year, such as Social Security benefits or certain veterans benefits, and file a return.

But if you’re in this category and don’t have enough in qualifying income, you can’t get a rebate. And Supplemental Security Income (SSI) benefits don’t count as qualifying income.

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