February 2008 Archives
This week President Bush signed into law the widely touted Economic Stimulus Package as a means to avert a deepening recession. For weeks we've been hearing about rebates and wondering if we would receive them and how much they will be worth. Here is what I understand so far. For 2008 a one-time, special tax credit has been created. Workers who earned at least $3,000 in 2007 will receive a check for $300 beginning in May as an advance against this credit. Single filers earning up to $75,000 will receive checks for $600 and folks filing married jointly will get $1,200 if their earnings are under $150,000. Earnings above these levels have a gradual phase out of rebate amounts. Children who were under the age of 17 at the end of 2007 are each worth $300 to their parents. If you file your 2007 federal income taxes, you do not need to do anything special to get the checks. If you chose to have direct deposit of your 2007 tax refunds, then your rebate will automatically be direct deposited as well. Expect to receive two mailed pieces from the IRS. One to explain the program and another to acknowlege your eligiblity and amount you are receiving. WATCH OUT FOR SCAMS - THEY ARE ALREADY REARING THEIR UGLY HEADS!!!
Now, it gets interesting for folks who receive veterans benefits or social security and have no federal tax liabililty and are not normally required by the IRS to file an income tax return. In order to receive the rebate you must file an income tax return and report your social security, railroad or veterans benefits. Because you are not required to file, don't worry about trying to meet the April 15 deadline. You can file anytime and get the rebate - it will just delay when you receive the money.
Even if seniors don't apply in 2008 or if workers didn't earn $3,000 in 2008, they will still be able to recieve it when they file their 2008 taxes. Don't worry about repaying the credit if when you do file your 2008 taxes you learn you were over income for it - consider it a gift. Details about the plan are still forthcoming so check out the rebate link on the home page of www.irs.gov