* IRS Article Updated – March 10, 2008 *
The IRS has recently passed the 2008 Tax Rebate Plan, and is providing taxpayers a rebate, or “stimulus payment”, in mid-2008 based on 2007 income information. Additionally, certain eligibility requirements must be met.
The Best Source
I have been following the online articles and news regarding the 2008 Tax Rebate Plan. I have searched for updated information, then I went right to the source, the IRS’s website, and I found it the most accurate and informative.
Visit this page regularly for the latest updates:
According to this article, “The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments.”
You must file your return by
Here are some examples from the IRS Frequently Asked Questions (FAQ) link:
Q: Who Will Get the Rebate?
A: Most single taxpayers will be eligible for a $600 rebate, and married couples who file jointly will be eligible for $1,200. Taxpayers with dependent children under age 17 will be eligible for an additional $300 per child. A typical family of four with two children would receive $1,800 ($1,200 married couple + $300 Child 1 + $300 Child 2).
Q: What If You Do Not Owe Income Tax in 2007?
A: 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.
Even if you didn’t owe any tax, you’re still eligible for a rebate of $300, or $600 for married couples, as long as you had at least $3,000 in earned income, Social Security benefits, veteran’s disability payments or a combination.
- So, make sure your retired relatives and friends file a return, even if it is just for information purposes.
Q: I normally don’t need to file a tax return. How do I know if I’m one of those people who may be eligible to receive an economic stimulus payment?
A: This group includes some recipients of Social Security, Railroad Retirement or veterans’ benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.”
Q: I know some people won’t get a stimulus payment. How do I know if I’m one of them?
A: You won’t get a stimulus payment in 2008, if any of the following apply to you:
- You don’t 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 else’s return. For example, this would include a child or student who can be claimed on a parent’s 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.
Article Also Provides Stimulus Payment Examples
The eligibility for and amount of stimulus payments to taxpayers will vary according to their income and family situations. I would suggest you read the article and the various scenarios it provides to you.
- Married with Children
- Married without Qualifying Children
- Single (Head of Household) with Children
- Single without Qualifying Children
My Two Cents
Many critics have said this is a bad idea, and the US Government should put that money into educational programs, schools, and other programs. Damned if you do, and damned if you don’t.
I have spoken to people close to me and they are so excited about receiving the money. I ask everyone what they plan to do, and everyone has plans to spend it on a vacation, something for their house, or a paying off some debt.
My opinion is – thank you IRS, I will take the money. $$$