For what it’s worth, I just received notification of the Economic Stimulus Tax Rebate checks. This is the same mailing that is reported to have cost the Internal Revenue Service (IRS) nearly $42 million to send out. While this pales in comparison to the $168 billion rebate program, it’s still a ton of money (more accurately, it’s 42 metric tons). So what did the IRS have to say for themselves? Read on to find out…
We are please to inform you that the Unites States Congress passed and President George W. Bush signed into law the Economic Stimulus Act of 2008, which provides for economic stimulus payments to be made to over 130 million American households. Under this new law, you may be entitled to a payment of up to $600 ($1, 200 if filing a joint return), plus additional amounts for each qualifying child.
We are sending this notice to let you know that absed on this new law the IRS will begin sending the one-time payment starting in May. To receive a payment in 2008, individuals who qualify will not have to do anything more than file a 2007 tax return. The IRS will determine eligibility, figure the amount, and send the payment. This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment.
For individuals who normally do not have to file a tax return, the new law provides for payments to individuals who have a total of $3, 000 or more in earned income, Social Security benefits, and/or certain veterans’ payments. Those individuals should file a tax return for 2007 to receive a payment in 2008.
Individuals who qualify may receive as much as $600 ($1, 200 if married filing jointly). Even if you pay no income tax but have a total of $3, 000 or more in earned income, Social Security benefits, and/or certain veterans’ payments, you may receive a payment of $300 ($600 if married filing jointly).
In addition, individuals eligible for payments may also receive an additional amount of $300 for each child qualifying for the child tax credit.
For taxpayers with adjusted gross income (AGI) of more than $75, 000 (or more than $150, 000 if married filing jointly), the payment will be reduced or phased out completely.
To qualify for the payment, an individual, spouse, and any qualifying child must have a valid Social Security number. In addition, individuals cannot receive a payment if they can be claimed as a dependent of another taxpayer or they filed a 2007 Form 1040NR, 1040NR-EZ, 1040-PR, or 1040-SS.
All individuals receiving payments will receive a notice and additional information shortly before the payment is made. In the meantime, for additional information, please visit the IRS website at www.irs.gov.
Honestly, there isn’t any information here that you couldn’t have gleaned for free from the major media outlets, or by a quick Google search. We still won’t qualify so, personally, this is much ado about nothing. For those of you that do qualify, congratulations. Now get out there and start spending! 😉