Still confused about the Economic Stimulus Act of 2008? Who isn’t? Here’s the who, what, how and when from the experts at JKLasser.com.
Filing your 2007 tax return is more than a ticket to a refund; it is the only way to get the rebate check that can put up to $1200, or more, in your pocket. Filing on time has never been more worth it. This year, filing for an extension can delay your rebate check until December.
What Do You Have to Do to Get a Check?
- To get a rebate check, you must file a tax return; either a form 1040, 1040A or 1040-EZ federal tax return for tax year 2007.
- Persons who do not normally file tax returns, like retirees, will have to file a 2007 tax return in order to get a rebate check.
When Will the Checks be Mailed?
- The IRS will begin mailing the rebate checks starting on May 2. The Treasury estimates that it should take about 10 weeks for all the checks to be mailed.
- Persons who fail to file their 2007 tax returns by April 15, 2008 and request a filing extension may not receive rebate checks until as late as December.
Who Will Get Tax Rebate Checks? How Much Will You Get?
- Single tax filers with adjusted gross income (AGI) less than $75,000 and couples filing jointly with AGIs less that $150,000 will qualify for full rebates.
- Qualifying single filers (AGI less than $75,000) will get rebates of up to $600. Qualifying couples (AGI less than $150,000) will get rebates of up to $1,200, plus $300 per dependent child, with no maximum on the number of eligible children.
- Persons who owe no income taxes, but earned at least $3,000 in wages, Social Security benefits or veterans disability benefits will get rebate checks of $300 for individuals and $600 for couples.
What if You Made More than the Maximum Income?
You will still get a check, but it will be reduced by 5-percent of the amount you earned above the AGI income caps of $75,000 for single filers and $150,000 for couples. At some income point above the AGI income caps, the rebate checks will phase out completely.
- For Singles, the phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. If you earn above $87k, you’re over and thus get nothing.
- For couples, the phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. If you earned above $174k, you’re over and also get nothing.
Some people won’t get a stimulus payment. How do you know if you’re one of them?
You won’t get a stimulus payment in 2008, if any of the following apply to you:
- Your net income tax liability is zero and your qualifying income is less than $3,000.
To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.
- You can be claimed as a dependent on someone else’s return. For example, this would include a child or student who can be claimed on a parent’s return.
- You do not have a valid Social Security Number.
- You are a nonresident alien.
For more on what can work for you, against you, and how to do better this year, go to our new subscriber-based web service at www.jklasser.com.