[Previous entry: "Where There's Smoke"] [Next entry: "Westcott Bay Institute Expands"]

03/06/2008: "“Stimulus Act” Puts Extra Money in Taxpayers’ Pockets"

By Milene Henley

The Economic Stimulus Act of 2008 sets forth a plan to send rebate checks to more than 130 million Americans beginning as early as May. The hope is that the extra income will stimulate the national economy.

Whether you will receive a rebate, and how much of a rebate you will receive, are determined by four factors. The first is your tax filing status, that is, whether you’re single (including head of household) or married. The second is your income tax liability for 2007. The third factor is your adjusted gross income (AGI) for 2007. The final factor is whether or not you have dependents.

In order to receive a rebate, a taxpayer must have an income tax liability for 2007. Having a tax liability does not mean that you owe money for 2007; you have a tax liability if you paid in more income taxes than you get back. Even without a tax liability, a taxpayer may receive a rebate if he or she has at least $3,000 of qualifying income. Qualifying income includes earned income, veteran’s disability payments, and social security benefits.



.
(continued from front page)
Most rebates will range from $300 to $600 for single persons and $600 to $1200 for married couples. In addition, taxpayers who receive any rebate will receive an additional $300 for each dependent who is under age 17 at the end of 2007.

Rebates phase out at higher income levels. Rebates begin to phase out at $75,000 of adjusted gross income for individuals and $150,000 of AGI for married couples filing jointly.

The rebates will be triggered by 2007 income tax returns. Persons who have at least $3,000 in qualifying income but are not required to file a 2007 return can still receive a rebate. In order to receive the rebate, however, they must file a return. Non-filers should do the following:

On either a Form 1040 or a Form 1040A, fill out name, address and social security number, and write the words “Stimulus Payment” at the top of the form. Report all income, including Social Security, veteran’s disability, and railroad retirement benefits, on Line 20a of Form 1040, or Line 14a of Form 1040A. For Washington residents, mail the form to: IRS, Fresno, CA 93888.

Taxpayers who have already filed a tax return reporting less than $3,000 of income may want to file an amended return if they have additional qualifying income that was not required to be reported on the original return.

If you elected to have your 2007 tax refund direct deposited, the stimulus payment will be sent to the same account. If you’re not receiving a refund, but will be eligible for the rebate, the IRS recommends that you put your bank routing information on your tax return anyway, so you will receive your rebate more quickly.

For additional information regarding the 2008 Stimulus Act and its applicability to you, contact your tax preparer, or go to www.irs.gov.


(F. Milene Henley is the San Juan County Auditor)