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Last Updated: Apr 27th, 2008 - 23:32:08
Economic Stimulus Rebate - What to Know, How to Get One
By ARA Content
Apr 17, 2008, 04:07 PST
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Economic Stimulus Rebate - What to Know, How to Get One
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(ARA) - In response to the threat of the U.S economy falling into recession, President Bush signed a new economic stimulus package into law February 2008 which will provide more than 130 million Americans with a little extra money. The first checks are scheduled to go out in May. Yet, some taxpayers are confused about how they can get their money from Uncle Sam.
To get a clear understanding of the rules and how the phase-outs work, here's a listing of how eligibility is structured:
Tax Rebate for Singles -
- If you earned at least $3,000 (and paid taxes), you're eligible to receive $300;
- If you earned more than $3,000 (and paid taxes), you'll receive $600;
- If you have children, you'll receive an additional $300 per child under age 17 (your child's Social Security number is a requirement);
- The phase-out reduction begins with those who have an Adjusted Gross Income (AGI) of $75,000 and ends at $87,000 - at a reduction of five percent per $1,000 over the lower limit. If you're single and earned more than $87,000, you will not receive a rebate check.
Tax Rebate for Couples -
- If you and your spouse earned more than $3,000 but you didn't pay taxes, you'll receive $600;
- If you and your spouse earned more than $3,000 and you paid taxes, you'll receive $1,200;
- If you have children, you'll receive an additional $300 per child under age 17 (your child's Social Security number is a requirement);
- The phase-out reduction begins with those couples who have an AGI of $150,000 and ends at $174,000 - at a reduction of five percent per $1,000 over the lower limit. If you are a couple who earned more than $174,000, you will not receive a rebate check.
Also important to note is that $300 payments will go to seniors, veterans and veterans' widows who showed $3,000 in veteran's disability or Social Security benefits.
Many Americans are asking, "If I hold off on filing my 2007 tax return until April, will I get my tax refund and rebate on one check?" and "Do I have to file a tax return to get a rebate check?"
"To ensure you receive a rebate check that may be due to you, taxpayers must file a 2007 tax return. For those Americans who don't earn enough income to normally file, a simplified filing process using Form 1040A has been rolled out by the IRS," says Stephanie Behrends, spokeswoman for 2nd Story Software -- makers of popular TaxACT tax software.
"However, whether you file your tax return in January or April, taxpayers who are expecting a tax refund will not receive a consolidated check representing their refund and stimulus rebate. In fact, rebate direct deposits and paper checks will be issued by the IRS based on the sequence of your Social Security Number."
If you are a one-time stimulus filer, you can opt to prepare Form 1040A-3 the old fashioned way (by hand) and mail it in to the IRS. Another option for stimulus filers is to file electronically by visiting the Free File Program hosted by IRS.gov. For 2008, taxpayers filing their 2007 tax return and one-time stimulus filers may qualify to use the IRS' Free File Program providing your Adjusted Gross Income does not exceed $54,000. Taxpayers are, however, encouraged to weigh their options carefully as some Alliance Partners place restrictions on the type of income and deductions taxpayers can claim while using the Free File Program.
TaxACT, the pioneer of free federal tax preparation software, provides taxpayers wanting a completely free way to prepare, print and e-file a federal tax return with its TaxACT Standard Edition -- no gimmicks or fine print. More information regarding TaxACT is available at www.TaxACT.com.
Courtesy of ARA Content
© Copyright 2008 by Classbrain.com
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