Economic Stimulus Payments : How to get the check from the IRS

Soon Americans will start receiving the check from Uncle Sam. In May, the U.S. Treasury will start sending economic stimulus payments to more than 130 million households. Many are calling these payments the stimulus payment, the tax rebate, or the refund.

“Many people are confused about whether they will get the check,” said Wil Golden, a regional Extension agent with the Alabama Cooperative Extension System. “Basically, to qualify you must have received benefits or earned income of $3,000 or more in 2007. Qualifying income includes earned income from wages, salaries, tips, self employment, social security, certain retirement benefits and veterans’ benefits.”

Some people receiving social security and other benefits may not realize that they qualify for stimulus payments or that they need to file a tax return to receive their portion of the stimulus payments.

“Even if you do not owe taxes you must file a 2007 tax return to receive a rebate check,” Golden added. “To get the rebate, file a tax return by April 15 and rebate checks will begin going out in May. If you do not normally file a tax return, you will need to file a 1040A or a 1040 form to get your check.”

Essentially eligibility works like this:
If you earned less than $3,000 you do not qualify for a tax rebate. If you earned more than $3,000 but paid no taxes, you will receive $300. If you made more than $3,000 and paid taxes you will receive $600. And if you have children under 17, add an additional $300 per child.

A single person will receive a $600 rebate check and a married couple will receive $1,200. For those filing joint tax returns, only a total of $3,000 of qualifying income for both spouses is required to be eligible for a payment. Payments to higher income taxpayers will be reduced by 5 percent of the amount of income above $75,000 for individuals and $150,000 for those filing jointly.

For more information, contact the Internal Revenue Service at www.irs.gov or call (800) 829-1040.

Posted by dreynold at February 26, 2008 10:17 AM | TrackBack