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Are you expecting a cash 2009 Income Tax Reabet from IRS this year? IRS estimates that more than 130 million households will get benefits of income tax rebate this year. IRS calls it stimulus payments. To get this income tax rebate the taxpayers must have a valid Social Security Number and he must file a 2008 federal tax return with $3000 of Income. According to IRS eligible taxpayers will receive up to $600 and $1200 for married couples, and parents will receive an additional $300 for each eligible child younger than 17yrs. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must file their return this year in order to receive a stimulus payment. To get your tax rebate from the IRS, be sure to file your Federal Tax Return  |
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2009 Tax Rebate Plan - The Economic Stimulus Plan
What You Need to Know about the 2009 Tax Rebate Plan:
The first piece of tax legislation in 2009, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2009. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2008 tax return and meet certain eligibility requirements. The IRS will calculate the amount of the rebate for you based on your 2008 income information.
What's the Maximum Stimulus Rebate Payment:
$600 for unmarried persons and $1,200 for married couples. Plus an additional $300 per qualifying child.
How Will the Rebate be Calculated:
The rebate is limited to the net tax liability. For many people, this amount will be the same as found on Form 1040 Line 57, Form 1040A Line 35, or Form 1040EZ Line 10. The rebate is reduced if the net tax liability is less than the maximum credit. The rebate will also be reduced for people with higher incomes. The stimulus rebate is reduced by 5 percent of the amount of income in excess of $75,000 (or $150,000 for married couples).
Who's Eligible for the Rebate:
Individuals who have at least $3,000 in qualifying income.
Who's Not Eligible for the Rebate:
Dependents, or people who could be claimed as dependents by another taxpayer, are not eligible. Also ineligible are non-resident aliens, anyone without a valid Social Security Number, and estates and trusts.
Qualifying Income:
Wages, self-employment, Social Security benefits, Railroad Retirement benefits, and veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2008. Supplemental Security Income (SSI) does not qualify for the rebate.
Qualifying Children and Dependents:
Any child under age 17 who is related to the taxpayer by blood, marriage, adoption or foster arrangement and whom the taxpayer can claim as a dependent. Dependents age 17 and over do not qualify for the additional rebate. Dependents of any age do not qualify for the rebate in their own name even if they earn their own income.
Impact on 2009 Tax Returns:
The stimulus rebates will be calculated by the IRS using information on the 2008 tax returns. If taxpayers were entitled to a larger rebate based on their 2009 income, those taxpayers will be able to claim a tax credit for the additional amount. Taxpayers won't have to pay back the rebate, however, if using their 2009 income would result in a lower rebate amount.
How Rebates will be Processed:
The IRS will mail out two notices to taxpayers. The first notice will inform people about the rebate. The second notice will confirm the taxpayer's eligibility, amount of the rebate that the IRS has calculated, and when the taxpayer should receive the rebate payment. Rebates will be sent by direct deposit, if bank account information was provided on the 2008 tax return, or by paper check.
Filing a Return:
Individuals must file a 2008 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.
If you are filing a 2008 tax return solely for the purpose of claiming the stimulus rebate repayment, show your nontaxable Social Security benefits, veteran's disability pension, or Railroad Retirement benefits on Form 1040 Line 20a or Form 1040A Line 14a. This will let the IRS know that you have qualifying income for the purposes of the rebate, even if you have no taxable income.
Direct Deposit Issues:
The IRS wants to send out rebate payments via direct deposit. This means you need to make sure your direct deposit information is absolutely, 100% accurate. Any mistake here could result in losing your rebate forever.
Refund Offset Issues:
The rebates are subject to the same offset procedures as other tax refunds. If a taxpayer owes back taxes, is in arrears on child support, or has defaulted on a student loan, the rebate payments will be applied to pay those debts.
The first piece of tax legislation in 2009, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2009. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2008 tax return and meet certain eligibility requirements. The IRS will calculate the amount of the rebate for you based on your 2008 income information.
What's the Maximum Stimulus Rebate Payment:
$600 for unmarried persons and $1,200 for married couples. Plus an additional $300 per qualifying child.
How Will the Rebate be Calculated:
The rebate is limited to the net tax liability. For many people, this amount will be the same as found on Form 1040 Line 57, Form 1040A Line 35, or Form 1040EZ Line 10. The rebate is reduced if the net tax liability is less than the maximum credit. The rebate will also be reduced for people with higher incomes. The stimulus rebate is reduced by 5 percent of the amount of income in excess of $75,000 (or $150,000 for married couples).
Who's Eligible for the Rebate:
Individuals who have at least $3,000 in qualifying income.
Who's Not Eligible for the Rebate:
Dependents, or people who could be claimed as dependents by another taxpayer, are not eligible. Also ineligible are non-resident aliens, anyone without a valid Social Security Number, and estates and trusts.
Qualifying Income:
Wages, self-employment, Social Security benefits, Railroad Retirement benefits, and veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2008. Supplemental Security Income (SSI) does not qualify for the rebate.
Qualifying Children and Dependents:
Any child under age 17 who is related to the taxpayer by blood, marriage, adoption or foster arrangement and whom the taxpayer can claim as a dependent. Dependents age 17 and over do not qualify for the additional rebate. Dependents of any age do not qualify for the rebate in their own name even if they earn their own income.
Impact on 2009 Tax Returns:
The stimulus rebates will be calculated by the IRS using information on the 2008 tax returns. If taxpayers were entitled to a larger rebate based on their 2009 income, those taxpayers will be able to claim a tax credit for the additional amount. Taxpayers won't have to pay back the rebate, however, if using their 2009 income would result in a lower rebate amount.
How Rebates will be Processed:
The IRS will mail out two notices to taxpayers. The first notice will inform people about the rebate. The second notice will confirm the taxpayer's eligibility, amount of the rebate that the IRS has calculated, and when the taxpayer should receive the rebate payment. Rebates will be sent by direct deposit, if bank account information was provided on the 2008 tax return, or by paper check.
Filing a Return:
Individuals must file a 2008 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.
If you are filing a 2008 tax return solely for the purpose of claiming the stimulus rebate repayment, show your nontaxable Social Security benefits, veteran's disability pension, or Railroad Retirement benefits on Form 1040 Line 20a or Form 1040A Line 14a. This will let the IRS know that you have qualifying income for the purposes of the rebate, even if you have no taxable income.
Direct Deposit Issues:
The IRS wants to send out rebate payments via direct deposit. This means you need to make sure your direct deposit information is absolutely, 100% accurate. Any mistake here could result in losing your rebate forever.
Refund Offset Issues:
The rebates are subject to the same offset procedures as other tax refunds. If a taxpayer owes back taxes, is in arrears on child support, or has defaulted on a student loan, the rebate payments will be applied to pay those debts.
Federal Income Tax Rebates - Get Your Tax Money Here!
Everyone knows you never get something for nothing.
Right? Well, that is usually true. But hold on to your hats, people. Not only are you going to get some MONEY for nothing, it's coming from the least likely place of all - the federal government!
What, you say? How can this be?
Here's how: the U.S. government, in all its generosity, has decided that in order to try and help what appears to be a looming recession, they will issue rebate checks to somewhere around 117 million people. Even if you earned money last year but not enough to pay taxes on.
Here's how it will work:
-Most people will get somewhere between $600 and $1,200, although there will be exceptions to this. For example, some individuals may only get $300, but that would be true only if they made at least $3,000 in 2007 but didn't pay any federal income taxes on it.
-To get the maximum $600 per individual, or $1,200 per couple rebate, you must have paid federal income taxes in 2007 and made at least $3,000.
-If you have children, you will get an additional $300 per dependent child.
-The rebates start phasing out if you are an individual with an adjusted gross income of over $75,000, or a couple with adjusted gross income of over $150,000. Note that these income thresholds are slightly higher if you have children, but the exact threshold numbers have not yet been released.
-The government will issue checks based on the returns filed in the spring of 2008 for tax year 2007.
It was announced that the checks are tentatively set to start being mailed in May of 2008. It would, therefore, be in your best interests to prepare and file your federal income tax return as soon as possible. The longer you wait to file, the longer you will wait for your rebate check.
If this isn't a good reason to prepare and file your federal income tax return early this year, what else is? Look in your mailbox in a few months for that nice freebie, and don't spend it all in one place!
Make sure you file your taxes early so you can get your rebate quickly. Click here to find out how H&R Block's TaxCut will have you getting that rebate check quickly and easily. They have a great federal (and state, too, if you need it) income tax preparation software program that will hold your hand and walk you right through it.
Right? Well, that is usually true. But hold on to your hats, people. Not only are you going to get some MONEY for nothing, it's coming from the least likely place of all - the federal government!
What, you say? How can this be?
Here's how: the U.S. government, in all its generosity, has decided that in order to try and help what appears to be a looming recession, they will issue rebate checks to somewhere around 117 million people. Even if you earned money last year but not enough to pay taxes on.
Here's how it will work:
-Most people will get somewhere between $600 and $1,200, although there will be exceptions to this. For example, some individuals may only get $300, but that would be true only if they made at least $3,000 in 2007 but didn't pay any federal income taxes on it.
-To get the maximum $600 per individual, or $1,200 per couple rebate, you must have paid federal income taxes in 2007 and made at least $3,000.
-If you have children, you will get an additional $300 per dependent child.
-The rebates start phasing out if you are an individual with an adjusted gross income of over $75,000, or a couple with adjusted gross income of over $150,000. Note that these income thresholds are slightly higher if you have children, but the exact threshold numbers have not yet been released.
-The government will issue checks based on the returns filed in the spring of 2008 for tax year 2007.
It was announced that the checks are tentatively set to start being mailed in May of 2008. It would, therefore, be in your best interests to prepare and file your federal income tax return as soon as possible. The longer you wait to file, the longer you will wait for your rebate check.
If this isn't a good reason to prepare and file your federal income tax return early this year, what else is? Look in your mailbox in a few months for that nice freebie, and don't spend it all in one place!
Make sure you file your taxes early so you can get your rebate quickly. Click here to find out how H&R Block's TaxCut will have you getting that rebate check quickly and easily. They have a great federal (and state, too, if you need it) income tax preparation software program that will hold your hand and walk you right through it.
Labels: federal income tax rebate information, get your tax rebate check sooner
More Information on Stimulus Payments Posted to IRS.gov; New Details for Recipients of Social Security, Veterans Benefits
WASHINGTON - The Internal Revenue Service released additional information today about the upcoming economic stimulus payments in a specially designed section for taxpayers on IRS.gov.
The new information includes an extensive set of Frequently Asked Questions about the stimulus payments, with a special emphasis on recipients of Social Security and certain veterans’ benefits. Millions of people in this group who normally don’t file a tax return will need to do so this year in order to receive a stimulus payment.
For recipients of Social Security and certain veterans’ benefits and low-income workers who don’t normally need to file, the IRS also released a special version of a Form 1040A that highlights the simple, specific sections of the return that can be filled out by people in these categories to qualify for a stimulus payment.
“Most taxpayers just need to file a 2008 tax return in order to automatically receive the stimulus payment,” said Acting IRS Commissioner Linda Stiff. “But we are especially concerned about recipients of Social Security and veterans’ benefits who may need to take special steps this year to file a tax return in order to obtain a stimulus payment. IRS.gov will help taxpayers get what they need.”
The Frequently Asked Questions section – accessible through the front page of IRS.gov -- includes an extensive set of information for all taxpayers with questions about the stimulus payments, commonly referred to as rebates. The questions and answers include important information for low-income workers and certain recipients of Social Security, Railroad Retirement benefits and veterans’ benefits.
The special IRS.gov section also features extensive examples of how much taxpayers can expect to receive in stimulus payments. The page includes more than two-dozen payment scenarios affecting different types of taxpayers.
IRS.gov will be updated frequently to provide taxpayers with all they need to understand the stimulus payments.
The IRS will begin sending taxpayers their economic stimulus payments in early May after the current tax season concludes. In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for married couples who file a joint return). Payments to more than 130 million households will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future on IRS.gov.
The IRS reminds taxpayers when they file their 2008 tax return to use direct deposit, which is the fastest way to get both regular refunds and stimulus payments. However, taxpayers who use Refund Anticipation Loans (RALs) or enter into any other loan or financial agreement with their tax professional cannot receive their stimulus payments by direct deposit and instead will get a paper check.
The only way to receive a stimulus payment in 2009 is to file a 2008 tax return. The vast majority of taxpayers must take no extra steps to receive their stimulus payment beyond the routine filing of their tax return. No other action, extra form or call is necessary.
Special Guidelines for Recipients of Certain Social Security, Veterans and Railroad Benefits
Certain people who normally are not required to file but who are eligible for the stimulus payment will have to file a 2008 tax return. This includes low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2008. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. For taxpayers filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.
The special version of the Form 1040A unveiled today on IRS.gov shows taxpayers in these groups the specific sections of the form they need to fill out to qualify for the stimulus payment. The mock-up is designed to be used as a guide for filling out an actual Form 1040A.
“People who don’t normally need to file have a roadmap on how to fill out the Form 1040A quickly and easily,” Stiff said. “We encourage recipients of Social Security and veterans’ benefits who don’t normally need to file a tax return to use this mock-up of the form as a guide to help them get their stimulus payment.”
The Form 1040A illustration on IRS.gov shows the limited number of lines that will need to be filled out for recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits. A key line is reporting their 2008 benefits on Line 14a of Form 1040A. The IRS reminds taxpayers they can also use Line 20a on Form 1040 to report these same benefits.
In addition, taxpayers in these groups should write the words "Stimulus Payment" at the top of the 1040A or 1040.
For now, taxpayers in this group filing a tax return can only file a paper copy of the Form 1040 or Form 1040A. The IRS is working to update its systems to accept electronic versions of these limited-information returns for taxpayers who otherwise have no need to file a tax return. The IRS is also working with the software community to handle these returns electronically at a future date.
The IRS also reminded taxpayers with Social Security, Railroad Retirement or veterans’ benefits who have already filed but did not report their qualifying benefits on either Line 14a of Form 1040A or Line 20a of Form 1040 that they may need to file an amended return in some situations to receive a larger stimulus payment.
Taxpayers who already have filed but did not report these benefits can file an amended return by using Form 1040X, which can only be filed with a paper form.
The IRS reminded taxpayers who don’t have any other requirement to file a tax return that submitting a tax return to qualify for the economic stimulus payments does not create any additional tax or trigger a tax bill. In addition, the stimulus payments will not have any effect on eligibility for federal benefits.
The IRS is working with the Social Security Administration and Department of Veterans Affairs and other organizations to ensure that recipients are aware of the need to file a tax return to receive their stimulus payment in 2009.
The new information includes an extensive set of Frequently Asked Questions about the stimulus payments, with a special emphasis on recipients of Social Security and certain veterans’ benefits. Millions of people in this group who normally don’t file a tax return will need to do so this year in order to receive a stimulus payment.
For recipients of Social Security and certain veterans’ benefits and low-income workers who don’t normally need to file, the IRS also released a special version of a Form 1040A that highlights the simple, specific sections of the return that can be filled out by people in these categories to qualify for a stimulus payment.
“Most taxpayers just need to file a 2008 tax return in order to automatically receive the stimulus payment,” said Acting IRS Commissioner Linda Stiff. “But we are especially concerned about recipients of Social Security and veterans’ benefits who may need to take special steps this year to file a tax return in order to obtain a stimulus payment. IRS.gov will help taxpayers get what they need.”
The Frequently Asked Questions section – accessible through the front page of IRS.gov -- includes an extensive set of information for all taxpayers with questions about the stimulus payments, commonly referred to as rebates. The questions and answers include important information for low-income workers and certain recipients of Social Security, Railroad Retirement benefits and veterans’ benefits.
The special IRS.gov section also features extensive examples of how much taxpayers can expect to receive in stimulus payments. The page includes more than two-dozen payment scenarios affecting different types of taxpayers.
IRS.gov will be updated frequently to provide taxpayers with all they need to understand the stimulus payments.
The IRS will begin sending taxpayers their economic stimulus payments in early May after the current tax season concludes. In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for married couples who file a joint return). Payments to more than 130 million households will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future on IRS.gov.
The IRS reminds taxpayers when they file their 2008 tax return to use direct deposit, which is the fastest way to get both regular refunds and stimulus payments. However, taxpayers who use Refund Anticipation Loans (RALs) or enter into any other loan or financial agreement with their tax professional cannot receive their stimulus payments by direct deposit and instead will get a paper check.
The only way to receive a stimulus payment in 2009 is to file a 2008 tax return. The vast majority of taxpayers must take no extra steps to receive their stimulus payment beyond the routine filing of their tax return. No other action, extra form or call is necessary.
Special Guidelines for Recipients of Certain Social Security, Veterans and Railroad Benefits
Certain people who normally are not required to file but who are eligible for the stimulus payment will have to file a 2008 tax return. This includes low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2008. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. For taxpayers filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.
The special version of the Form 1040A unveiled today on IRS.gov shows taxpayers in these groups the specific sections of the form they need to fill out to qualify for the stimulus payment. The mock-up is designed to be used as a guide for filling out an actual Form 1040A.
“People who don’t normally need to file have a roadmap on how to fill out the Form 1040A quickly and easily,” Stiff said. “We encourage recipients of Social Security and veterans’ benefits who don’t normally need to file a tax return to use this mock-up of the form as a guide to help them get their stimulus payment.”
The Form 1040A illustration on IRS.gov shows the limited number of lines that will need to be filled out for recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits. A key line is reporting their 2008 benefits on Line 14a of Form 1040A. The IRS reminds taxpayers they can also use Line 20a on Form 1040 to report these same benefits.
In addition, taxpayers in these groups should write the words "Stimulus Payment" at the top of the 1040A or 1040.
For now, taxpayers in this group filing a tax return can only file a paper copy of the Form 1040 or Form 1040A. The IRS is working to update its systems to accept electronic versions of these limited-information returns for taxpayers who otherwise have no need to file a tax return. The IRS is also working with the software community to handle these returns electronically at a future date.
The IRS also reminded taxpayers with Social Security, Railroad Retirement or veterans’ benefits who have already filed but did not report their qualifying benefits on either Line 14a of Form 1040A or Line 20a of Form 1040 that they may need to file an amended return in some situations to receive a larger stimulus payment.
Taxpayers who already have filed but did not report these benefits can file an amended return by using Form 1040X, which can only be filed with a paper form.
The IRS reminded taxpayers who don’t have any other requirement to file a tax return that submitting a tax return to qualify for the economic stimulus payments does not create any additional tax or trigger a tax bill. In addition, the stimulus payments will not have any effect on eligibility for federal benefits.
The IRS is working with the Social Security Administration and Department of Veterans Affairs and other organizations to ensure that recipients are aware of the need to file a tax return to receive their stimulus payment in 2009.
Your 2009 Federal Tax Rebate Schedule for Tax Returns Processed by April 15
| Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting May 2. Paper checks will be put in the mail starting May 16.DIRECT DEPOSIT | ||||||||||||||||||||
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People who file a return after April 15 will receive their economic stimulus payment, but probably about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year. See the online calculator for an estimate of the amount you will receive. |
IRS Encourages Organizations on Outreach to Low-Income Workers to Get their 2009 federal Income Tax Rebate
WASHINGTON - As part of a national outreach effort, the Internal Revenue Service today encouraged nonprofits, charities and other community groups to reach out to low-income Americans who may not realize they are eligible for the 2009 economic stimulus payment.
Workers who normally do not file a tax return because their income is too low but who have at least $3,000 in wages, tips or salary or other qualifying income may be eligible for an economic stimulus payment. However, they must file a 2008 income tax return in order to receive a payment.
The IRS encouraged government and nongovernmental organizations, especially churches and charities that work with low-income Americans to help spread the word to individuals and families. Because it lacks name and address information for many low-wage workers, the IRS is unable to contact everyone who may be eligible.
"Many people who don't normally file a tax return may not realize they need to take an extra step this year to receive an economic stimulus payment," said Acting IRS Commissioner Linda E. Stiff. "We are encouraging groups across the country to help us get out the word that low-income workers and others need to file a tax return in order to receive a stimulus payment."
"Some low-income taxpayers may never have filed a tax return before yet qualify for an economic stimulus payment," added National Taxpayer Advocate Nina E. Olson. "Community-based organizations can play a vital role in spreading the word about the steps people must take to receive their payment. Part of that message should be to seek help from reputable sources and avoid Internet solicitations."
Generally, workers who earn less than $8,750 if single, $11,250 if a single parent or $17,500 if married are not required to file a tax return. This year, however, they should file a simple tax return if they had at least $3,000 in qualifying income which is defined as earned income, nontaxable combat pay or certain Social Security, Veterans Affairs or Railroad Retirement benefits. It also can be a mix of pay and benefits.
The IRS will mail 20.5 million information packages to Social Security and Veterans Affairs recipients, starting next week. In all, more than 130 million individuals and couples may be eligible for an economic stimulus payment of up to $600 ($1,200 for married couples.). Some households may qualify for an additional $300 for each eligible child younger than 17.
People who normally do not file a tax return may be eligible for the minimum payment of $300 ($600 for married couples) plus the additional $300 per eligible child.
There are some caveats: People must have at least $3,000 in qualified income, valid Social Security numbers for themselves and their qualifying children and cannot be a dependent or be eligible to be claimed as a dependent on someone else’s tax return.
Organizations with interest in providing information to Americans who may be eligible for these payments can go to IRS.gov for materials and marketing tools to help spread the word.
An IRS.gov Web page, Economic Stimulus Payments: Marketing Products for Partners, has one-page flyers, envelope stuffers and more information that can be downloaded. Also available is the Package 1040A-3, a 8-page package containing everything low-wage workers need to file a tax form immediately.
The IRS also is working with a number of key national organizations such as AARP, National Community Tax Coalition/Center for Economic Progress, National Council on Aging, Center for Budget and Policy Priorities, National Disability Institute, United Way of America, Catholic Charities, Disabled American Veterans and others.
In addition, the IRS is reaching out to small business employers and employees across the nation with the help of organizations such as the United States Chamber of Commerce, the National Federation of Independent Business and the National Association for the Self-Employed.
Starting in May, the IRS will begin issuing economic stimulus payments based on the 2008 tax returns being filed this spring. Filers who have bank accounts can receive their stimulus payments faster by using direct deposit.
Free help is available. For those with computer access, IRS Free File –Economic Stimulus Payment is available at IRS.gov. People can use IRS Free File to prepare returns and submit them electronically for free.
People also can print out Package 1040A-3 (pdf), the 8-page publication containing tips for completing a return, a sample Form 1040A and a blank Form 1040A, which people can complete and mail to the IRS.
There are also thousands of free tax preparation sites staffed by volunteers nationwide. And, there are more than 400 IRS Taxpayer Assistance Centers nationwide.
Workers who normally do not file a tax return because their income is too low but who have at least $3,000 in wages, tips or salary or other qualifying income may be eligible for an economic stimulus payment. However, they must file a 2008 income tax return in order to receive a payment.
The IRS encouraged government and nongovernmental organizations, especially churches and charities that work with low-income Americans to help spread the word to individuals and families. Because it lacks name and address information for many low-wage workers, the IRS is unable to contact everyone who may be eligible.
"Many people who don't normally file a tax return may not realize they need to take an extra step this year to receive an economic stimulus payment," said Acting IRS Commissioner Linda E. Stiff. "We are encouraging groups across the country to help us get out the word that low-income workers and others need to file a tax return in order to receive a stimulus payment."
"Some low-income taxpayers may never have filed a tax return before yet qualify for an economic stimulus payment," added National Taxpayer Advocate Nina E. Olson. "Community-based organizations can play a vital role in spreading the word about the steps people must take to receive their payment. Part of that message should be to seek help from reputable sources and avoid Internet solicitations."
Generally, workers who earn less than $8,750 if single, $11,250 if a single parent or $17,500 if married are not required to file a tax return. This year, however, they should file a simple tax return if they had at least $3,000 in qualifying income which is defined as earned income, nontaxable combat pay or certain Social Security, Veterans Affairs or Railroad Retirement benefits. It also can be a mix of pay and benefits.
The IRS will mail 20.5 million information packages to Social Security and Veterans Affairs recipients, starting next week. In all, more than 130 million individuals and couples may be eligible for an economic stimulus payment of up to $600 ($1,200 for married couples.). Some households may qualify for an additional $300 for each eligible child younger than 17.
People who normally do not file a tax return may be eligible for the minimum payment of $300 ($600 for married couples) plus the additional $300 per eligible child.
There are some caveats: People must have at least $3,000 in qualified income, valid Social Security numbers for themselves and their qualifying children and cannot be a dependent or be eligible to be claimed as a dependent on someone else’s tax return.
Organizations with interest in providing information to Americans who may be eligible for these payments can go to IRS.gov for materials and marketing tools to help spread the word.
An IRS.gov Web page, Economic Stimulus Payments: Marketing Products for Partners, has one-page flyers, envelope stuffers and more information that can be downloaded. Also available is the Package 1040A-3, a 8-page package containing everything low-wage workers need to file a tax form immediately.
The IRS also is working with a number of key national organizations such as AARP, National Community Tax Coalition/Center for Economic Progress, National Council on Aging, Center for Budget and Policy Priorities, National Disability Institute, United Way of America, Catholic Charities, Disabled American Veterans and others.
In addition, the IRS is reaching out to small business employers and employees across the nation with the help of organizations such as the United States Chamber of Commerce, the National Federation of Independent Business and the National Association for the Self-Employed.
Starting in May, the IRS will begin issuing economic stimulus payments based on the 2008 tax returns being filed this spring. Filers who have bank accounts can receive their stimulus payments faster by using direct deposit.
Free help is available. For those with computer access, IRS Free File –Economic Stimulus Payment is available at IRS.gov. People can use IRS Free File to prepare returns and submit them electronically for free.
People also can print out Package 1040A-3 (pdf), the 8-page publication containing tips for completing a return, a sample Form 1040A and a blank Form 1040A, which people can complete and mail to the IRS.
There are also thousands of free tax preparation sites staffed by volunteers nationwide. And, there are more than 400 IRS Taxpayer Assistance Centers nationwide.
Labels: federal tax rebate for low wage workers, get your 2008 income tax rebate check from IRS
IRS Announces 2009 Federal Tax Rebate Schedules, Provides Online Payment Calculator
WASHINGTON-The Internal Revenue Service announced today that it will begin sending more than 130 million economic stimulus payments starting May 2. The initial round of weekly payments will be completed by early July.
The IRS also announced the availability of a new online calculator on IRS.gov to help people determine the amount of their stimulus payments.
Stimulus payments will be made by direct deposit to people who choose to receive their 2008 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check.
“To receive an economic stimulus payment, people just need to file their tax returns as they usually do," said IRS Acting Commissioner Linda E. Stiff. “The payments will be automatic for the vast majority of taxpayers. Some lower-income workers and recipients of certain Social Security and veterans benefits who don’t normally need to file a tax return will need to do so in order to receive a stimulus payment. IRS.gov has all the information people need to help them obtain a stimulus payment."
Stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return.
Because the IRS will use the Social Security number to determine when checks are mailed, taxpayers may receive their checks at different times than their neighbors or other family members. On a jointly filed return, the first Social Security number listed will determine the mail-out time.
The IRS expects to make about 34 million payments within the first three weeks after the payment schedule begins May 2. With more than 130 million households expected to receive stimulus payments, more than 25 percent of the payments will be made in the first three weeks.
Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by April 15, 2009. For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by April 15, the paper checks will be in the mail starting May 16, with the initial mailings completed by around July 11.
The IRS is also announcing today the availability of an on-line calculator on IRS.gov to help taxpayers determine if they are eligible to receive an economic stimulus payment and if they are, how much they can expect. Anyone who has prepared a 2008 income tax return can use the calculator. It will ask taxpayers a series of questions, so they should have their 2008 tax returns handy. After answering the questions, the calculator will provide the projected dollar value of the payment.
Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2009.
A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.
All or part of an economic stimulus payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset.
To accommodate people whose tax returns are processed after April 15, the IRS will continue sending weekly payments. People who file tax returns after April 15 and receive a refund can expect to receive their economic stimulus payments in about two weeks after receiving their tax refunds, but not before the date they would have received their payment if the return had been processed by April 15. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.
Two bureaus of the Treasury Department are involved in making the payments. The IRS will calculate the amount of each economic stimulus payment based on the tax year 2008 income tax returns it receives. The IRS will then forward the information to the Financial Management Service (FMS), which is the bureau of the Treasury Department that makes federal payments such as Social Security benefits, federal income tax refunds and, now, economic stimulus payments.
The IRS reminds taxpayers that they can get their stimulus payments faster by using direct deposit when they file their tax return.
In addition, the IRS urges taxpayers to file electronically. For people who normally don’t need to file a tax return, the IRS and Free File Alliance have a special program set up to allow for free electronic filing.
The IRS also announced the availability of a new online calculator on IRS.gov to help people determine the amount of their stimulus payments.
Stimulus payments will be made by direct deposit to people who choose to receive their 2008 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check.
“To receive an economic stimulus payment, people just need to file their tax returns as they usually do," said IRS Acting Commissioner Linda E. Stiff. “The payments will be automatic for the vast majority of taxpayers. Some lower-income workers and recipients of certain Social Security and veterans benefits who don’t normally need to file a tax return will need to do so in order to receive a stimulus payment. IRS.gov has all the information people need to help them obtain a stimulus payment."
Stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return.
Because the IRS will use the Social Security number to determine when checks are mailed, taxpayers may receive their checks at different times than their neighbors or other family members. On a jointly filed return, the first Social Security number listed will determine the mail-out time.
The IRS expects to make about 34 million payments within the first three weeks after the payment schedule begins May 2. With more than 130 million households expected to receive stimulus payments, more than 25 percent of the payments will be made in the first three weeks.
Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by April 15, 2009. For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by April 15, the paper checks will be in the mail starting May 16, with the initial mailings completed by around July 11.
The IRS is also announcing today the availability of an on-line calculator on IRS.gov to help taxpayers determine if they are eligible to receive an economic stimulus payment and if they are, how much they can expect. Anyone who has prepared a 2008 income tax return can use the calculator. It will ask taxpayers a series of questions, so they should have their 2008 tax returns handy. After answering the questions, the calculator will provide the projected dollar value of the payment.
Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2009.
Stimulus Payment Schedule for Tax Returns
Received and Processed by April 15
Direct Deposit Payments | |
If the last two digits of your Social Security number are: | Your economic stimulus payment deposit should be sent to your bank account by: |
00 – 20 | May 2 |
21 – 75 | May 9 |
76 – 99 | May 16 |
Paper Check | |
If the last two digits of your Social Security number are: | Your check should be in the mail by: |
00 – 09 | May 16 |
10 – 18 | May 23 |
19 – 25 | May 30 |
26 – 38 | June 6 |
39 – 51 | June 13 |
52 – 63 | June 20 |
64 – 75 | June 27 |
76 – 87 | July 4 |
88 – 99 | July 11 |
A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.
All or part of an economic stimulus payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset.
To accommodate people whose tax returns are processed after April 15, the IRS will continue sending weekly payments. People who file tax returns after April 15 and receive a refund can expect to receive their economic stimulus payments in about two weeks after receiving their tax refunds, but not before the date they would have received their payment if the return had been processed by April 15. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.
Two bureaus of the Treasury Department are involved in making the payments. The IRS will calculate the amount of each economic stimulus payment based on the tax year 2008 income tax returns it receives. The IRS will then forward the information to the Financial Management Service (FMS), which is the bureau of the Treasury Department that makes federal payments such as Social Security benefits, federal income tax refunds and, now, economic stimulus payments.
The IRS reminds taxpayers that they can get their stimulus payments faster by using direct deposit when they file their tax return.
In addition, the IRS urges taxpayers to file electronically. For people who normally don’t need to file a tax return, the IRS and Free File Alliance have a special program set up to allow for free electronic filing.
Labels: 2008 federal tax rebate, federal income tax rebate plan
2009 Federal Tax Rebate Plan
What You Need to Know about the 2009 Tax Rebate Plan: The first piece of tax legislation in 2009, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2009. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2008 tax return and meet certain eligibility requirements. The IRS will calculate the amount of the rebate for you based on your 2008 income information.
What's the Maximum Stimulus Rebate Payment: $600 for unmarried persons and $1,200 for married couples. Plus an additional $300 per qualifying child.
How Will the Rebate be Calculated: The rebate is limited to the net tax liability. For many people, this amount will be the same as found on Form 1040 Line 57, Form 1040A Line 35, or Form 1040EZ Line 10. The rebate is reduced if the net tax liability is less than the maximum credit. The rebate will also be reduced for people with higher incomes. The stimulus rebate is reduced by 5 percent of the amount of income in excess of $75,000 (or $150,000 for married couples).
Who's Eligible for the Rebate: Individuals who have at least $3,000 in qualifying income.
Who's Not Eligible for the Rebate:
Dependents, or people who could be claimed as dependents by another taxpayer, are not eligible. Also ineligible are non-resident aliens, anyone without a valid Social Security Number, and estates and trusts.
Qualifying Income:
Wages, self-employment, Social Security benefits, Railroad Retirement benefits, and veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2008. Supplemental Security Income (SSI) does not qualify for the rebate.
Qualifying Children and Dependents:
Any child under age 17 who is related to the taxpayer by blood, marriage, adoption or foster arrangement and whom the taxpayer can claim as a dependent. Dependents age 17 and over do not qualify for the additional rebate. Dependents of any age do not qualify for the rebate in their own name even if they earn their own income.
Impact on 2008 Tax Returns:
The stimulus rebates will be calculated by the IRS using information on the 2008 tax returns. If taxpayers were entitled to a larger rebate based on their 2008 income, those taxpayers will be able to claim a tax credit for the additional amount. Taxpayers won't have to pay back the rebate, however, if using their 2008 income would result in a lower rebate amount.
How Rebates will be Processed:
The IRS will mail out two notices to taxpayers. The first notice will inform people about the rebate. The second notice will confirm the taxpayer's eligibility, amount of the rebate that the IRS has calculated, and when the taxpayer should receive the rebate payment. Rebates will be sent by direct deposit, if bank account information was provided on the 2008 tax return, or by paper check.
Filing a Return:
Individuals must file a 2008 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.
If you are filing a 2008 tax return solely for the purpose of claiming the stimulus rebate repayment, show your nontaxable Social Security benefits, veteran's disability pension, or Railroad Retirement benefits on Form 1040 Line 20a or Form 1040A Line 14a. This will let the IRS know that you have qualifying income for the purposes of the rebate, even if you have no taxable income.
Direct Deposit Issues:
The IRS wants to send out rebate payments via direct deposit. This means you need to make sure your direct deposit information is absolutely, 100% accurate. Any mistake here could result in losing your rebate forever.
Refund Offset Issues:
The rebates are subject to the same offset procedures as other tax refunds. If a taxpayer owes back taxes, is in arrears on child support, or has defaulted on a student loan, the rebate payments will be applied to pay those debts.
What's the Maximum Stimulus Rebate Payment: $600 for unmarried persons and $1,200 for married couples. Plus an additional $300 per qualifying child.
How Will the Rebate be Calculated: The rebate is limited to the net tax liability. For many people, this amount will be the same as found on Form 1040 Line 57, Form 1040A Line 35, or Form 1040EZ Line 10. The rebate is reduced if the net tax liability is less than the maximum credit. The rebate will also be reduced for people with higher incomes. The stimulus rebate is reduced by 5 percent of the amount of income in excess of $75,000 (or $150,000 for married couples).
Who's Eligible for the Rebate: Individuals who have at least $3,000 in qualifying income.
Who's Not Eligible for the Rebate:
Dependents, or people who could be claimed as dependents by another taxpayer, are not eligible. Also ineligible are non-resident aliens, anyone without a valid Social Security Number, and estates and trusts.
Qualifying Income:
Wages, self-employment, Social Security benefits, Railroad Retirement benefits, and veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2008. Supplemental Security Income (SSI) does not qualify for the rebate.
Qualifying Children and Dependents:
Any child under age 17 who is related to the taxpayer by blood, marriage, adoption or foster arrangement and whom the taxpayer can claim as a dependent. Dependents age 17 and over do not qualify for the additional rebate. Dependents of any age do not qualify for the rebate in their own name even if they earn their own income.
Impact on 2008 Tax Returns:
The stimulus rebates will be calculated by the IRS using information on the 2008 tax returns. If taxpayers were entitled to a larger rebate based on their 2008 income, those taxpayers will be able to claim a tax credit for the additional amount. Taxpayers won't have to pay back the rebate, however, if using their 2008 income would result in a lower rebate amount.
How Rebates will be Processed:
The IRS will mail out two notices to taxpayers. The first notice will inform people about the rebate. The second notice will confirm the taxpayer's eligibility, amount of the rebate that the IRS has calculated, and when the taxpayer should receive the rebate payment. Rebates will be sent by direct deposit, if bank account information was provided on the 2008 tax return, or by paper check.
Filing a Return:
Individuals must file a 2008 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.
If you are filing a 2008 tax return solely for the purpose of claiming the stimulus rebate repayment, show your nontaxable Social Security benefits, veteran's disability pension, or Railroad Retirement benefits on Form 1040 Line 20a or Form 1040A Line 14a. This will let the IRS know that you have qualifying income for the purposes of the rebate, even if you have no taxable income.
Direct Deposit Issues:
The IRS wants to send out rebate payments via direct deposit. This means you need to make sure your direct deposit information is absolutely, 100% accurate. Any mistake here could result in losing your rebate forever.
Refund Offset Issues:
The rebates are subject to the same offset procedures as other tax refunds. If a taxpayer owes back taxes, is in arrears on child support, or has defaulted on a student loan, the rebate payments will be applied to pay those debts.
Labels: 2008 tax rebate plan, federal income tax rebate plan
Federal Income Tax Rebate Scenarios Single (Head of Household) with Children
In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of how the Economic Stimulus Act of 2009 may effect taxpayers who are single, file as head of household and have children who qualify for the child tax credit payment:
Head of household with children:
1) Single parent with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
2) Single parent with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
3) Single parent with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
4) Single parent with two children, no wages, no social security benefits, no veterans’ payments, AGI is $20,000, federal income tax liability before child tax credit is $195.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
5) Single parent with two children, AGI is $22,000, federal income tax liability before child tax credit is $395.
Individual rebate is $395
Qualifying child credit is $600
TOTAL is $995
6) Single parent with two children, AGI is $60,000, federal income tax liability before child tax credit exceeds $600.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
7) Single parent with two children, AGI is $90,000, federal income tax liability before child tax credit exceeds $600.
Individual rebate is $600
Qualifying child credit is $600
Phaseout reduction is ($750)
TOTAL is $450
Examples of how the Economic Stimulus Act of 2009 may effect taxpayers who are single, file as head of household and have children who qualify for the child tax credit payment:
Head of household with children:
1) Single parent with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
2) Single parent with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
3) Single parent with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
4) Single parent with two children, no wages, no social security benefits, no veterans’ payments, AGI is $20,000, federal income tax liability before child tax credit is $195.
Individual rebate is $300
Qualifying child credit is $600
TOTAL is $900
5) Single parent with two children, AGI is $22,000, federal income tax liability before child tax credit is $395.
Individual rebate is $395
Qualifying child credit is $600
TOTAL is $995
6) Single parent with two children, AGI is $60,000, federal income tax liability before child tax credit exceeds $600.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
7) Single parent with two children, AGI is $90,000, federal income tax liability before child tax credit exceeds $600.
Individual rebate is $600
Qualifying child credit is $600
Phaseout reduction is ($750)
TOTAL is $450
Labels: 2008 federal income tax rebate, 2008 tax rebate for federal income tax rebate, income tax rebate scenarios for single with children
2009 Federal Income Tax Rebates Scenarios for Married Filing Separately
In most cases, payments will range from $300 to $600 for individuals and $600 to $1,200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of how the Economic Stimulus Act of 2009 may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:
1) Married, no children, filing separately; both have valid Social Security numbers (SSNs)
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately (MFS) filing status. Husband has adjusted gross income (AGI) of $7,000, none of which is earned income or other qualifying income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $0 (because he has no net income tax liability and no qualifying income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, and their joint net income tax liability is at least $1, their economic stimulus payment would be $600.
2) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $7,000, including $5,000 of earned income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $300 (he has no net income tax liability; however, he has at least $3,000 in earned income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, their economic stimulus payment would be $600.
3) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $25,000; wife has AGI of $26,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $600
Wife's economic stimulus payment is $600
Note — if this couple files jointly and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
4) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $350 (basic economic stimulus paymentof $600, phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $600
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
5) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $15,000 and net income tax liability of $286; wife has AGI of $25,000 and net income tax liability in excess of $600.
Husband's economic stimulus payment is $600 {basic economic stimulus payment of $300 (limited by his net income tax liability of $286, but raised to the minimum of $300), plus child amount of $300}
Wife's economic stimulus payment is $900 (basic economic stimulus payment of $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
6) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $650 (basic economic stimulus paymentof $600, plus child amount of $300; total $900, then phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $900 (basic economic stimulus paymentof $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
7) Choosing MFS instead of MFJ, one spouse with ITIN
Married couple, no children. The wife has a valid SSN, but husband does not qualify for an SSN. Instead, the husband has an Individual Taxpayer Identification Number (ITIN) which was provided by the IRS for tax filing purposes. They are each required to file for 2008 and filed separate tax returns, both using the filing status Married Filing Separately. They each meet the income tax liability and income qualifications to receive an economic stimulus payment of the maximum amount.
Husband’s economic stimulus payment is $0 (because he does not have a valid Social Security number)
Wife’s economic stimulus payment is $600
Note — if this couple files jointly, their economic stimulus payment would be $0, because they filed jointly and one of them does not have a valid Social Security number.
Examples of how the Economic Stimulus Act of 2009 may affect taxpayers who are married but file separately, with or without children who qualify for the child tax credit payment:
1) Married, no children, filing separately; both have valid Social Security numbers (SSNs)
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately (MFS) filing status. Husband has adjusted gross income (AGI) of $7,000, none of which is earned income or other qualifying income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $0 (because he has no net income tax liability and no qualifying income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, and their joint net income tax liability is at least $1, their economic stimulus payment would be $600.
2) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $7,000, including $5,000 of earned income; wife has AGI of $12,000 and net income tax liability of $328.
Husband's economic stimulus payment is $300 (he has no net income tax liability; however, he has at least $3,000 in earned income)
Wife's economic stimulus payment is $328 (limited to her net income tax liability)
Note — if this couple files jointly, their economic stimulus payment would be $600.
3) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $25,000; wife has AGI of $26,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $600
Wife's economic stimulus payment is $600
Note — if this couple files jointly and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
4) Married, no children, filing separately; both have valid SSNs
Married couple, no children. They choose to file separate tax returns, each using the Married Filing Separately filing status. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $350 (basic economic stimulus paymentof $600, phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $600
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,200.
5) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $15,000 and net income tax liability of $286; wife has AGI of $25,000 and net income tax liability in excess of $600.
Husband's economic stimulus payment is $600 {basic economic stimulus payment of $300 (limited by his net income tax liability of $286, but raised to the minimum of $300), plus child amount of $300}
Wife's economic stimulus payment is $900 (basic economic stimulus payment of $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
6) Married, two children, filing separately; all have valid SSNs
Married couple, two qualifying children. They choose to file separate tax returns, each using the Married Filing Separately filing status. They each claim one of the two children. Husband has AGI of $80,000; wife has AGI of $70,000. Husband and wife each have a net income tax liability in excess of $600.
Husband's economic stimulus payment is $650 (basic economic stimulus paymentof $600, plus child amount of $300; total $900, then phased down $250 because his AGI exceeds $75,000)
Wife's economic stimulus payment is $900 (basic economic stimulus paymentof $600, plus child amount of $300)
Note — if this couple files jointly, and their joint net income tax liability exceeds $1,200, their economic stimulus payment would be $1,800 (basic economic stimulus payment of $1,200, plus child amount of $600).
7) Choosing MFS instead of MFJ, one spouse with ITIN
Married couple, no children. The wife has a valid SSN, but husband does not qualify for an SSN. Instead, the husband has an Individual Taxpayer Identification Number (ITIN) which was provided by the IRS for tax filing purposes. They are each required to file for 2008 and filed separate tax returns, both using the filing status Married Filing Separately. They each meet the income tax liability and income qualifications to receive an economic stimulus payment of the maximum amount.
Husband’s economic stimulus payment is $0 (because he does not have a valid Social Security number)
Wife’s economic stimulus payment is $600
Note — if this couple files jointly, their economic stimulus payment would be $0, because they filed jointly and one of them does not have a valid Social Security number.
Labels: 2008 income tax rebate, 2008 tax rebate, basics of income tax rebate, federal income tax rebate
Income Tax Rebate Scenarios for Married without Qualifying Children
In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of ways the Economic Stimulus Act of 2008 may affect taxpayers who are married, file a joint return and are either childless or do not have children who qualify for child tax credit payment:
1) Married couple with no children, wages of $4,000, no federal income tax liability.
Rebate is $600
2) Married couple with no children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability.
Rebate is $600
3) Married couple with no children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability.
Rebate is $600
4) Married couple with no children, no wages, no social security benefits, no veterans’ payments, AGI is $20,000, federal income tax liability is $250.
Rebate is $600
5) Married couple with no children, AGI is $25,000, federal income tax liability is $750.
Rebate is $750
6) Married couple with no children, AGI is $60,000, federal income tax liability exceeds $1,200.
Rebate is $1,200
7) Married couple with no children, AGI is $160,000, federal income tax liability exceeds $1,200.
Rebate is $1,200
Phaseout reduction is ($500)
TOTAL is $700
Examples of ways the Economic Stimulus Act of 2008 may affect taxpayers who are married, file a joint return and are either childless or do not have children who qualify for child tax credit payment:
1) Married couple with no children, wages of $4,000, no federal income tax liability.
Rebate is $600
2) Married couple with no children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability.
Rebate is $600
3) Married couple with no children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability.
Rebate is $600
4) Married couple with no children, no wages, no social security benefits, no veterans’ payments, AGI is $20,000, federal income tax liability is $250.
Rebate is $600
5) Married couple with no children, AGI is $25,000, federal income tax liability is $750.
Rebate is $750
6) Married couple with no children, AGI is $60,000, federal income tax liability exceeds $1,200.
Rebate is $1,200
7) Married couple with no children, AGI is $160,000, federal income tax liability exceeds $1,200.
Rebate is $1,200
Phaseout reduction is ($500)
TOTAL is $700
Income Tax Rebate Scenarios for Married with Qualifying Children
In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liabilty and Adjusted Gross Income. Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.
Examples of how the Economic Stimulus Act of 2008 may affect taxpayers who are married, file a joint return and have children who qualify for the child tax credit payment:
1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
2) Married couple with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
3) Married couple with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
4) Married couple with two children, no wages, no social security benefits, no veterans’ payments, AGI is $25,000, federal income tax liability before child tax credit is $70.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
5) Married couple with two children, AGI is $35,000, federal income tax liability before child tax credit is $1,070.
Rebate is $1,070
Qualifying child credit is $600
TOTAL is $1,670
6) Married couple with two children, AGI is $80,000, federal income tax liability before child tax credit exceeds $1,200.
Rebate is $1,200
Qualifying child credit is $600
TOTAL is $1,800
7) Married couple with two children, AGI is $160,000, federal income tax liability before child tax credit exceeds $1,200.
Rebate is $1,200
Qualifying child credit is $600
Phaseout reduction is ($500)
TOTAL is $1,300
Examples of how the Economic Stimulus Act of 2008 may affect taxpayers who are married, file a joint return and have children who qualify for the child tax credit payment:
1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
2) Married couple with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
3) Married couple with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
4) Married couple with two children, no wages, no social security benefits, no veterans’ payments, AGI is $25,000, federal income tax liability before child tax credit is $70.
Rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
5) Married couple with two children, AGI is $35,000, federal income tax liability before child tax credit is $1,070.
Rebate is $1,070
Qualifying child credit is $600
TOTAL is $1,670
6) Married couple with two children, AGI is $80,000, federal income tax liability before child tax credit exceeds $1,200.
Rebate is $1,200
Qualifying child credit is $600
TOTAL is $1,800
7) Married couple with two children, AGI is $160,000, federal income tax liability before child tax credit exceeds $1,200.
Rebate is $1,200
Qualifying child credit is $600
Phaseout reduction is ($500)
TOTAL is $1,300
Basic Information on the You Need for Income Tax Rebate
You've heard about it. Now find out how to get yours.
What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2008 or 2009 refund or increase the amount you owe when you file your 2008 return.
Are you eligible? You're eligible if you have a valid Social Security Number (SSN) and show qualifying income of at least $3,000 on your federal tax return. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Can you use an ITIN instead of an SSN? Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Not eligible at the current time? If your circumstances change and you become eligible after you file your 2008 federal tax return, you can always file an amended return using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2009 tax return.
How do you get it? Just file a a federal tax return for 2008, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You can't get it if you don't file.
How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.
The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.
How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.
What if some or all of your income consists of Social Security, veterans' or other benefits? The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards the qualifying income requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. To get the payment, you have to file a 2008 tax return using either Form 1040 or the short Form 1040A. For more information, see:
Information for Recipients of Social Security Benefits
Information for Recipients of Veteran's Benefits
FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans Benefits.
What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2008 or 2009 refund or increase the amount you owe when you file your 2008 return.
Are you eligible? You're eligible if you have a valid Social Security Number (SSN) and show qualifying income of at least $3,000 on your federal tax return. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Can you use an ITIN instead of an SSN? Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment if only one has a valid SSN, neither can receive the payment.
Not eligible at the current time? If your circumstances change and you become eligible after you file your 2008 federal tax return, you can always file an amended return using Form 1040X. If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2009 tax return.
How do you get it? Just file a a federal tax return for 2008, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You can't get it if you don't file.
How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.
The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.
How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.
What if some or all of your income consists of Social Security, veterans' or other benefits? The economic stimulus law allows Social Security recipients and recipients of certain veterans' benefits and Railroad Retirement benefits to count those benefits towards the qualifying income requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. To get the payment, you have to file a 2008 tax return using either Form 1040 or the short Form 1040A. For more information, see:
Sample Form 1040A
Those who normally don't have to file a tax return and can use the short form for the stimulus payment can see an example of how to fill out Form 1040A.
Learn More about the Economic Stimulus Payments
For more information, check out our:
Warning Scam Artists Are Calling Taxpayers about the Stimulus Payments
If someone claiming to be from the IRS calls or e-mails you about the payments and asks you for a Social Security, bank account or credit card number, it's a scam. The scammers are trying to get your personal and financial information so they can empty your bank account, run up charges on your credit card and more. Find out more see IR-2009-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting.
Source : irs.gov
Labels: basics of income tax rebate, income tax rebate, income tax rebate information
Get Your Federal Income Tax Rebate Check Now
Why Do Your Taxes - To Get IRS Income Tax Rebate?
You should do you taxes online now because you will only be eligible to get IRS Stimulus, if you have filed your 2008 federal tax return. The amount of tax rebate you received will be based on information contained in your tax return. Taxpayers who file their taxes after April 15 could get their rebates months after those who file on time.