Generally

• A tax rebate is a "refund" of tax money. Instead of taxpayers writing a check to the IRS, the IRS writes a check to the taxpayers.
  
  

Time Frame

• A tax rebate can be authorized at any time by the US Congress. After the US Congress authorizes a tax rebate, it typically takes the IRS between three to six months to issue the checks to taxpayers.
  
  

Significance

• Tax rebates reduce the amount of money held by the IRS, but, on the other hand, they increase the amount of money held by taxpayers.
  
  

Types

• Congress has authority to issue a tax rebate for any reason and at any time. Most commonly, Congress uses tax rebates to try and spur a down-turning economy.
  
  

Misconceptions

• A tax rebate is not technically a tax "refund" since even people who didn't earn enough money to pay income tax can still receive a tax rebate. It is within the discretion of Congress to decide who gets tax rebates and when.