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About Stimulus Payment

onlinetax — Mon, 24 Mar 2008 06:22:41 CDT

IRS Tax Rebate - File Taxes Now Get IRS Stimulus
	Get Your IRS Tax Rebate File your 2007 Tax Return and get your IRS Rebate Check.
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS 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. But there are more details to know about. Find out more here and visit this page regularly for the latest updates. If you haven't filed you tax return Start Now... Facts about the 2008 Stimulus Payments Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer. The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment. Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments. Basic Eligibility The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return). Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans’ benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income. Additional Payments for Parents and Others with Qualifying Children Parents and anyone else eligible for a stimulus payment will also receive 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. Limitation To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment. Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment. Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status. Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment. Special Circumstances for Recipients of Social Security, Railroad Retirement and Certain Veterans Benefits Individuals who receive Social Security benefits, Railroad Retirement benefits and certain veterans’ benefits may have to follow special filing requirements in order to receive the basic amount: - Those who have already filed a 2007 return reflecting qualifying income of $3,000 or more do not have any additional filing requirements and do not need to do anything more to receive their payment. - Those who have already filed a 2007 return showing less than $3,000 in qualifying income and did not list their Social Security, Railroad Retirement or certain veterans benefits should file a Form 1040X to list those non-taxable benefits and qualify for a payment. - Those who are not required to file a 2007 return but whose total qualifying income including Social Security, certain Railroad Retirement and certain Veterans benefits would equal or exceed $3,000 should file a return reporting these benefits on Line 14a of Form 1040A or Line 20a of Form 1040 to establish their eligibility. Please note the form lines just mention Social Security, but use these lines even if your only benefits were Railroad Retirement or veterans’ benefits. Source : irs.gov

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onlinetax — Mon, 24 Mar 2008 06:21:43 CDT

IRS Tax Rebate - File Taxes Now Get IRS Stimulus
	Get Your IRS Tax Rebate File your 2007 Tax Return and get your IRS Rebate Check.
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS 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. But there are more details to know about. Find out more here and visit this page regularly for the latest updates. If you haven't filed you tax return Start Now...

2008 Tax Rebates and Economic Stimulus Plan.

What You Need to Know about the 2008 Tax Rebate Plan:

The first piece of tax legislation in 2008, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2008. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2007 tax return and meet certain eligibility requirements. The IRS will calculate the amount of the rebate for you based on your 2007 income information.

What's the Maximum Stimulus Rebate Payment:

$600 for unmarried persons and $1,200 for married couples. Plus an additional $300 per qualifying child.

How Will the Rebate be Calculated:

The rebate is limited to the net tax liability. For many people, this amount will be the same as found on Form 1040 Line 57, Form 1040A Line 35, or Form 1040EZ Line 10. The rebate is reduced if the net tax liability is less than the maximum credit. The rebate will also be reduced for people with higher incomes. The stimulus rebate is reduced by 5 percent of the amount of income in excess of $75,000 (or $150,000 for married couples).

Who's Eligible for the Rebate:

Individuals who have at least $3,000 in qualifying income.

Who's Not Eligible for the Rebate:

Dependents, or people who could be claimed as dependents by another taxpayer, are not eligible. Also ineligible are non-resident aliens, anyone without a valid Social Security Number, and estates and trusts.

Qualifying Income:

Wages, self-employment, Social Security benefits, Railroad Retirement benefits, and veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2007. Supplemental Security Income (SSI) does not qualify for the rebate.

Qualifying Children and Dependents:

Any child under age 17 who is related to the taxpayer by blood, marriage, adoption or foster arrangement and whom the taxpayer can claim as a dependent. Dependents age 17 and over do not qualify for the additional rebate. Dependents of any age do not qualify for the rebate in their own name even if they earn their own income.

Impact on 2008 Tax Returns:

The stimulus rebates will be calculated by the IRS using information on the 2007 tax returns. If taxpayers were entitled to a larger rebate based on their 2008 income, those taxpayers will be able to claim a tax credit for the additional amount. Taxpayers won't have to pay back the rebate, however, if using their 2008 income would result in a lower rebate amount.

How Rebates will be Processed:

The IRS will mail out two notices to taxpayers. The first notice will inform people about the rebate. The second notice will confirm the taxpayer's eligibility, amount of the rebate that the IRS has calculated, and when the taxpayer should receive the rebate payment. Rebates will be sent by direct deposit, if bank account information was provided on the 2007 tax return, or by paper check.

Filing a Return:

Individuals must file a 2007 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.

If you are filing a 2007 tax return solely for the purpose of claiming the stimulus rebate repayment, show your nontaxable Social Security benefits, veteran's disability pension, or Railroad Retirement benefits on Form 1040 Line 20a or Form 1040A Line 14a. This will let the IRS know that you have qualifying income for the purposes of the rebate, even if you have no taxable income.

Direct Deposit Issues:

The IRS wants to send out rebate payments via direct deposit. This means you need to make sure your direct deposit information is absolutely, 100% accurate. Any mistake here could result in losing your rebate forever.

Labels: Economic Stimulus Plan

Income Tax Energy Rebate Can Now Be Reported On IRS ''Short Form''

In order to make it easier for residents of New Mexico to report the Income Tax Energy Rebate check amounts on their 2005 federal income tax returns, the Internal Revenue Service today adjusted its tax return procedures to allow the rebate to be reported on the short-form federal tax returns.

Taxpayers who would normally use a short-form IRS Form 1040EZ or Form 1040A may now report the rebate on either of these forms, rather than having to use the long-form IRS Form 1040 solely because of the rebate.

Although this procedural change comes after many have already filed their tax returns, more than 60 percent of taxpayers still have yet to file, says IRS spokesman Bill Brunson. We wanted to do what we could, as soon as it was possible, to make the process easier for those still working on their taxes.

Under these special procedures, short-form filers should report these rebate payments on the line normally designated for reporting unemployment compensation.

For Form 1040EZ filers, this is line 3.

For Form 1040A filers, this is line 13.

No special identification or notation needs to be written on either form.

Taxpayers who also received unemployment compensation during 2005 should add the amount of the rebate to the amount of unemployment compensation received and then enter the combined amount on the appropriate line of whichever short form is used.

Taxpayers who must file using IRS Form 1040 for other reasons should report the amount of the rebate received as other income on line 21.

Taxpayers who would otherwise have filed a short-form 1040EZ or 1040A but instead have already filed the long-form 1040 to report the rebate on line 21 should not re-file on a short form.

These instructions apply to rebate payments only and do not affect how other income is reported.

For federal tax purposes, the income tax energy rebate has previously been determined to be taxable to each recipient.

Source : irs.gov

Labels: Income Tax Energy Rebate

Special Economic Stimulus Letters Reach Mailboxes in March

More than 130 million American households will begin receiving Internal Revenue Service letters next week reminding them to file a 2007 tax return in order to receive a 2008 economic stimulus payment.

The mailings by the IRS will begin the first week in March and continue throughout the month. The informational notice, titled Economic Stimulus Payment Notice, alerts people that they may be eligible for a one-time stimulus payment of up to $600 ($1,200 married filing jointly) starting in May. There also is a $300 per child payment for qualifying children younger than 17.

“These special letters remind people that they won’t need to do anything more than file a 2007 tax return in order to put the stimulus payment process in motion,” Acting IRS Commissioner Linda Stiff said.

The notice is informational and does not seek any financial information. The main mailings, which will take place in three weekly batches, will go to taxpayers who filed a tax return last year.

“To receive a payment in 2008, individuals who qualify will not have to do anything more than file a 2007 tax return. The IRS will determine eligibility, figure the amount and send the payment,” the notice states. “This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment.”

However, some people must take an extra step this year to receive a stimulus payment. In late March, the IRS will send a special mailing to certain recipients of Social Security and Veterans Affairs benefits. Generally, those benefits are nontaxable and recipients do not file tax returns. In order to receive a stimulus payment, people in this group need to file a tax return if they have at least $3,000 from a combination of certain Social Security benefits, Veterans benefits and earned income. The minimum stimulus payment for these people is $300 ($600 for married filing jointly).

The IRS has created a sample of Form 1040A with information on how to fill out a few lines that will enable eligible people who do not normally file a tax return to receive the stimulus payment.

More details on the special mailings for recipients of Social Security and veterans benefits will be available soon.

Source : irs.gov

Basic Eligibility

onlinetax — Mon, 24 Mar 2008 06:15:35 CDT

IRS Tax Rebate - File Taxes Now Get IRS Stimulus
	Get Your IRS Tax Rebate File your 2007 Tax Return and get your IRS Rebate Check.
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS 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. But there are more details to know about. Find out more here and visit this page regularly for the latest updates. If you haven't filed you tax return Start Now... Basic Eligibility Q. What do I need to do to get an economic stimulus payment? A. All you need to do is file a federal income tax return for 2007. Even if you are not otherwise required to file a tax return, you must file a 2007 return in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will. In most cases, you will fill out your return, reporting all your income, deductions and credits as you normally would. But even if you are not required to file, you must file a 2007 return to get a stimulus payment this year. Low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs who normally do not file may receive a stimulus payment if they do. The IRS will provide special filing instructions for those who do not otherwise have a filing requirement. The instructions will explain which lines on the tax return the filers need to complete. You do not need to calculate the amount of the stimulus payment. If you qualify, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms. Q. How do I find out if I am eligible? A. Most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57 plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10. Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources. Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment. Q. If I'm filing a tax return this year just to get a stimulus payment, by when do I have to file? A. The IRS encourages everyone to file by the normal April 15 tax deadline: The sooner you file the sooner you can receive your stimulus payment. But if you have obtained a valid six-month extension to file or if you are filing to establish your eligibility for the stimulus payment, filing by Oct. 15 means the IRS can process your return and issue a stimulus payment before the end of the year. Q. My child just turned 17 in December 2007. Do I still get the extra child payment? A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment. Q: I know some people will not get a stimulus payment. How do I know if I am one of them? A: You will not get a stimulus payment in 2008, if any of the following apply to you: You do not file a 2007 tax return. Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans payments. You can be claimed as a dependent on someone elses return. For example, this would include a child or student who can be claimed on a parents return. You do not have a valid Social Security Number. You are a nonresident alien. You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007. Source : irs.gov Labels: Basic Eligibility

Basic Information

onlinetax — Thu, 20 Mar 2008 07:49:35 CDT

IRS Tax Rebate - File Taxes Now Get IRS Stimulus
	Get Your IRS Tax Rebate File your 2007 Tax Return and get your IRS Rebate Check.
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS 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. But there are more details to know about. Find out more here and visit this page regularly for the latest updates. If you haven't filed you tax return Start Now... Basic Information on the Stimulus Payments What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return. Are you eligible? You're 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 — if only one has a valid SSN, neither can receive 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 using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return. How do you get it? Just file a 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 can't get it if you don't 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. We have various examples for you check out. The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment. Can you estimate your payment? The IRS has created an online calculator that will allow you to answer a few questions and get a quick estimate of your payment amount. How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check. When will you get your payment? Starting May 2, payments will be electronically transmitted to direct deposit accounts. Paper checks will be mailed starting May 16. The payments are based on the last two-digits of the mail filer's Social Security number. The IRS has issued a schedule for payments as direct deposits or paper checks. 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 requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. To get the payment, you have to file a 2007 tax return using either Form 1040 or the short Form 1040A. For more information, see: Information for Recipients of Social Security Benefits Information for Recipients of Veteran's Benefits FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits.

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