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Economic Stimulus Package - Tax Rebate Information
Beginning in May, the United States Treasury will begin sending economic stimulus payments to more than 130 million households. To receive payment, taxpayers much have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. The Internal Revenue Service will take care of the rest! Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment. What is an Economic Stimulus Payment, Tax Rebate?
It is an economic stimulus payment that more than 130 million households will receive starting in May. It is not taxable and it will not reduce your 2007 or 2008 refund or increase the amount you owe if any liability is due when filing your 2008 return. Are you Eligible?
You are eligible if you have a valid Social Security Number (SSN) and show qualifying income of at least $3,000 on your federal tax return. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment - if only one has a valid SSN, neither can receive the payment. Can you use an ITIN instead of an SSN?
Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment. Not eligible at the current time?
If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return. How do you get it?
Just file a federal tax return for 2007, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You cannot get it if you do not file. How much will you get?
The actual amount depends on the information contained on your tax return. eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.
The stimulus payments phase our at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.
How will you receive the payment?
If you are due a refund when filing your 2007 federal tax return and choose to have your refund directly deposited into your bank account, the stimulus payment will go right to your bank account. Otherwise a check will be mailed to you.
What if some or all of your income consists of Social Security, veterans' or other benefits?
The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards the qualifying income for the stimulus payment. To get the payment, you have to file a 2007 tax return. More to follow.... March 6, 2008
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