Tax News
Economic Stimulus Payments Beginning in May
Alert : A delay in efiling a tax return might delay the economic stimulus payment.
Tax Rebate payments
The list provided here is intended for a high level overview and understanding.
Everything stated here might have exceptions.
Economic stimulus package facts:
Does everyone qualify for a tax rebate?
No not everyone. If you do not have any federal income tax liability for 2007 or $3,000 in income from a combination of earned income, Social Security benefits or veteran’s benefits you will not receive a rebate check. Also, there is a phase-out that starts at adjusted gross incomes above $75,000 ($150,000 for joint filers) that will keep some taxpayers from receiving a rebate. Nonresident aliens, those without Social Security numbers (including both spouses in the case of joint returns) and those who can be claimed as a dependent of another taxpayer also won’t receive rebates.
Who will get a tax rebate and how much?
Individuals
Most individuals who are single tax filers (including those filing as heads of household or married filing separately) will receive a maximum $600 rebate, assuming you paid at least that much in income tax for 2007. The rebate phases out for taxpayers with adjusted gross incomes over $75,000.
Most adults who file jointly will receive a maximum $1,200 rebate, assuming you paid at least that much in income tax for 2007. This rebate phases out for couples with incomes over $150,000.
Low- or no-income individuals
If you earned at least $3,000 in income in 2007 from a job and/or self-employment, or you received at least $3,000 in Social Security and/or veteran benefits, you will be eligible for a $300 rebate or $600 with your spouse if you are married and file jointly – even if you do not owe any income tax for 2007.
You also will receive at least the minimum $300 or $600 rebate if you have at least one dollar of tax liability and gross income greater than your standard deduction plus one exemption (two exemptions if filing jointly).
If your tax liability (before counting any withholding or estimated tax payments) is between $300 and $600 as a single filer or $600 and $1,200 as a married couple filing jointly, then your rebate will be equal to the amount you paid in 2007 federal income tax.
Parents
Parents who qualify for any of the above rebates also can receive a $300 rebate for each qualifying child, which is any child who will be younger than 17 (that is, each child must be eligible for the regular child credit and must have a Social Security number). As with the basic rebate, this additional amount is subject to the overall rebate phase-out for adjusted gross income above either the $75,000 or $150,000 levels
Tax rebate summary:
- Taxpayers must file or efile a 2007 tax return.
- Eligibility and amount will be based on that.
- No other application required, no phone calls necessary.
- Payments to more than 130 million taxpayers will start in May 2008 and continue over several weeks.
- Direct deposit will apply if taxpayers selected that option on their tax returns.
- Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.
Stimulus Payment Mailing Dates Based on SSN
Click here for Detailed Stimulus Package Information
Information provided is thought to be reliable but is not guaranteed to be accurate.