IRS Tax Rebate - File Taxes Now Get IRS Stimulus

But Rebate Checks Come to Those Who File

The much-talked about irs tax rebate checks, under the economic stimulus package, was signed into law by President on Wednesday, February 13th. If you are entitled to the irs tax rebate check, you have to file a tax return for 2008 as your tax rebate will be determined based on your 2008 tax information. If you do not file- you will not get the irs tax rebate.

There are millions of American's who qualify for the tax rebate checks, but who would not normally file a tax return. People who earn below a certain income or who are on Social Security are not always required to file a return, but if they want to take advantage of receiving their portion of the economic stimulus package, they will need to file a return anyway.

Due to the requirement of filing a 2008 tax return in order to get the irs tax rebate check, the IRS estimates having to process an additional 10 million or more returns this year.

Do you usually file your tax return late, or ask for an extension to file? If you do this, you'll be delaying your irs tax rebate check- but it is still unclear how the IRS will determine the schedule of mailing out the checks. They will start mailing in May of 2008- but will no be included with your regular tax refunds, if you receive any. The IRS does report that as soon as it is determined, all of America will know when to expect their checks to arrive.

About a week or so before the check is actually mailed, recipients will receive a letter that informs them of the amount of their own irs tax rebate check. If you choose to receive your tax rebate with a direct deposit, you will probably get the deposit around the same time as the letter telling you how much you are going to get, because direct deposit speeds up the process.

The good news is the irs tax rebate will not be counted as taxable income on your 2008 tax return. If your situation changes in 2008 you may actually be eligible for a higher rebate, which you will receive in the form of a tax refund in 2008- but if the situation changes and would cause you to receive a lower tax rebate, the IRS indicates that you would not have to repay any of the rebate you received back.

What are YOU going to do with YOUR IRS Tax Rebate check??

Blow it?? Invest it?? Pay Bills??

IRS Tax Rebate checks could soon be coming as the government attempts to jump start the economy and minimize the impact of a recession this year.

Congress and President reached agreement on the size of the checks, and who will qualify to receive one.

The goal: to stimulate the economy by getting consumers to spend again.

There will be a $1,200 family maximum

Most individual taxpayers will receive a $600 check, with another $300 per child

The average American will think the Government is giving them a gift.

Uhhh... slightly mistaken!

We will not have to pay income tax on the checks, as they are an advance on next year's tax cut.

So.... My fellow American entrepreneur.....

ARE WE GOING TO BLOW OUR IRS TAX REBATE CHECK OR ARE WE GOING TO TAKE ADVANTAGE OF IT???

We have several options and a lot of people are thinking of paying off debt with it, or buying all that stuff we have been wanting to get, BUT REALLY, it won't go very far in today's economy AT ALL!!

What about INVESTING your IRS tax rebate check??

And reap returns from your investment all next year....There are many successful home based business opportunities available , that you can get started in for anywhere from $300 - $1300. Unlike traditional businesses, where you have to invest in a building, have high overhead or inventory, most home based businesses have very low overhead, if any, and can be run right out of our home and from our computer.

The world is our market place so we have the advantages of marketing our product or services to millions of potential customers...

Regardless how we look at it, by investing that money - we at least, have a chance at increasing our income this year, and if we blow it at the mall, (which is what Uncle Sam wants us to, by the way!)... we are no better off than we were AND WE WILL PAY TAXES ON IT NEXT YEAR!

By now you have most likely heard about the federal tax rebate that was passed by President last week, with the intention of jump starting the economy. But what you may not know is that you have to file your 2008 tax return before you can get your income tax rebate check.

The IRS is expecting to start mailing out checks in May.

Single filers with AGI below $75,000 will get rebates of as much as $600. Couples with AGI below $150,000 will receive rebates of up to $1,200. If you are above these income limits, you may still get a rebate, but it will be phased out 5% for every dollar you are above the limit.

In addition, parents will also receive $300 rebates per child under 17; there is no cap on the number of qualifying children eligible.

An example: A couple with one child and $100,000 in AGI will get a rebate of $1,500 ($1,200 + $300). If they have two children, they will get $1,800 ($1,200 + $600).

Tax filers who do not owe income taxes because of various credits and deductions but have at least $3,000 in income - which can include Social Security will get $300 rebates per person or $600 per couple.

So, what do you have to do to get your income tax rebate check?

The IRS will start mailing out the income tax rebate checks in May 2008 to taxpayers who have filed their 2008 tax returns by April 15. You must file a federal tax return for 2008. If you are not normally required to file a return, you will need to file to receive your irs tax rebate check.

If you file your tax return before April 15, you can expect to receive your tax rebate check in May. If you file for an extension, then you may not get your income tax rebate check until the end of the year.

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 2008 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 2008 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 2008.

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 IRS Tax Rebate will have you getting that rebate check quickly and easily.

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 do not normally need to file a tax return will need to do so in order to receive a stimulus payment. IRS 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, 2008. 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.

This section is for people who work but do not earn enough money to have a requirement to file a tax return. The IRS and Treasury will be working with many organizations to ensure that all eligible individuals know what to do to receive a stimulus payment.

Normally, people who receives wages or self-employment below a certain amount are not required to file a tax return. However, the economic stimulus law passed in February contains a special provision allowing low-wage workers with at least $3,000 in qualified income to qualify for the stimulus payment. There also is a payment of $300 for each eligible child under age 17. See eligibility requirements below.

For eligible workers, the IRS has prepared a 10-page informational package that includes instructions, a sample Form 1040A and a blank Form 1040A — everything needed to file a tax return today.


Basic Eligibility Requirements

How It Works
Following are two scenarios in which taxpayers qualify for the economic stimulus payment:

File Now
The economic stimulus payment payments will be issued beginning in early May, and will continue through the rest of the year. The IRS is encouraging people to file the simple tax return by April 15, 2008. If you have a bank account, you can choose Direct Deposit for your payment. Direct Deposit is the easiest, fastest way to receive a economic stimulus payment.

The IRS cannot, by law, issue any economic stimulus payment checks or Direct Deposits after Dec. 31, 2008. You must file your simple tax form with enough time left in the calendar year for the IRS to process it and issue your economic stimulus payment before the end of the year.

Mailing Addresses
Even those who normally don't have to file a federal tax return will have to file one this year in order to claim the economic stimulus payment. Find out where to send yours.

Free Tax Help Available
Individuals who need to file a return this year to receive a stimulus payment may be able to take advantage of thousands of free tax preparation sites nationwide for low-income and elderly taxpayers.

Free File: Economic Stimulus Payment provides free tax preparation software and electronic filing for people who are submitting a return solely to receive their economic stimulus payment.

Source : irs.gov

In order to make it easier for residents of New Mexico to report the Income Tax Energy Rebate check amounts on their 2005 federal income tax returns, the Internal Revenue Service today adjusted its tax return procedures to allow the rebate to be reported on the short-form federal tax returns.

Taxpayers who would normally use a short-form IRS Form 1040EZ or Form 1040A may now report the rebate on either of these forms, rather than having to use the long-form IRS Form 1040 solely because of the rebate.

Although this procedural change comes after many have already filed their tax returns, more than 60 percent of taxpayers still have yet to file, says IRS spokesman Bill Brunson. We wanted to do what we could, as soon as it was possible, to make the process easier for those still working on their taxes.

Under these special procedures, short-form filers should report these rebate payments on the line normally designated for reporting unemployment compensation.

For Form 1040EZ filers, this is line 3.

For Form 1040A filers, this is line 13.

No special identification or notation needs to be written on either form.

Taxpayers who also received unemployment compensation during 2005 should add the amount of the rebate to the amount of unemployment compensation received and then enter the combined amount on the appropriate line of whichever short form is used.

Taxpayers who must file using IRS Form 1040 for other reasons should report the amount of the rebate received as other income on line 21.

Taxpayers who would otherwise have filed a short-form 1040EZ or 1040A but instead have already filed the long-form 1040 to report the rebate on line 21 should not re-file on a short form.

These instructions apply to rebate payments only and do not affect how other income is reported.

For federal tax purposes, the income tax energy rebate has previously been determined to be taxable to each recipient.

Source : irs.gov