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 2007 as your tax rebate will be determined based on your 2007 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 2007 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 2007 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 2007 tax returns by April 15. You must file a federal tax return for 2007. 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 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 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 2007 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 2007 income tax return can use the calculator. It will ask taxpayers a series of questions, so they should have their 2007 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

Q. What do I need to do to get an economic stimulus payment?

A. All you need to do is file a federal income tax return for 2007. Even if you are not otherwise required to file a tax return, you must file a 2007 return in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will.

In most cases, you will fill out your return, reporting all your income, deductions and credits as you normally would. But even if you are not required to file, you must file a 2007 return to get a stimulus payment this year. Low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs who normally do not file may receive a stimulus payment if they do. The IRS will provide special filing instructions for those who do not otherwise have a filing requirement. The instructions will explain which lines on the tax return the filers need to complete.

You do not need to calculate the amount of the stimulus payment. If you qualify, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms.

Q. How do I find out if I am eligible?

A. Most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57 plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.

Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.

Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment.

Q. If I'm filing a tax return this year just to get a stimulus payment, by when do I have to file?

A. The IRS encourages everyone to file by the normal April 15 tax deadline: The sooner you file the sooner you can receive your stimulus payment. But if you have obtained a valid six-month extension to file or if you are filing to establish your eligibility for the stimulus payment, filing by Oct. 15 means the IRS can process your return and issue a stimulus payment before the end of the year.

Q. My child just turned 17 in December 2007. Do I still get the extra child payment?

A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment.

Q: I know some people will not get a stimulus payment. How do I know if I am one of them?

A: You will not get a stimulus payment in 2008, if any of the following apply to you:

What You Need to Know about the 2008 Tax Rebate Plan:

The first piece of tax legislation in 2008, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2008. 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 2007 tax return and meet certain eligibility requirements. The IRS will calculate the amount of the rebate for you based on your 2007 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 2007. 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 2007 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 2007 tax return, or by paper check.

Filing a Return:

Individuals must file a 2007 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 2007 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.

IRS TAX TIP 2008-Special Edition

Are you wondering what to do to ensure that you receive your economic stimulus payment which the IRS will begin to send out this May? In most cases you will not have to do anything extra. If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest.

However, recipients of Social Security, certain Veterans and Railroad Retirement benefits and low-income workers who do not normally need to file may have to take steps to insure receipt of the stimulus payment.

If you are in this group and normally would not be required to file a tax return, you need to file a 2007 tax return this year to receive an economic stimulus payment. The return must show at least $3000 in 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. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.

The IRS has released a sample 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. Additionally, individuals who normally do not file a tax return but must do so this year in order to receive their 2008 economic stimulus payment can use the IRS Free File program to help them file returns for 2007.

For more information see IRS Fact Sheet FS 2008-16 Stimulus Payments Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans Benefits available.

If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest, said Acting IRS Commissioner Linda Stiff.

The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.

The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Most taxpayers just need to file a 2007 tax return as usual. No other action, extra form or call is necessary. This Web site will be the best information source for all updates and taxpayer questions.

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 taxpayers who file a joint return).

The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans disability compensation, pension or survivors benefits received from the Department of Veterans Affairs in 2007. 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. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.

Recipients of Social Security, certain Railroad Retirement and certain veterans benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue.

Some people receiving Social Security and veterans benefits may not realize they will need to file a tax return to get the stimulus payment, Stiff said. To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.

Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.

Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.

Taxpayers must have valid Social Security Numbers to qualify for the stimulus payment. If married filing jointly, both taxpayers must have a valid Social Security Number. And, children must have valid Social Security Numbers to be eligible as qualifying children.

Taxpayers who file their tax returns using an Individual Taxpayer Identification Number issued by the IRS or any number issued by the IRS are ineligible. Also ineligible are individuals who can be claimed as dependents on someone elses return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.

To accommodate taxpayers who file tax returns later in the year, the IRS will continue sending payments until December 31, 2008. The IRS also cautions taxpayers that if they file their 2007 tax return and then move their residence that they should file a change of address card with the U.S. Postal Service.