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DEFINITIVE stimulus payment info

Date: Sat, 02/16/2008 - 03:19
Submitted by unclewulf on Sat, 02/16/2008 - 03:19
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Mornin' folks -

I found this info on the stimulus payments in my inbox the other day, and thought to pass it along. It's from the IRS Newswire email newsletter. Additional information, including examples, is available on a new section of the IRS website.

[quote]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 2007 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 2007 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 2008 is to file a 2007 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 2007 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 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. 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 2007 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 2008.
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IRS Newswire subscription page

IRS website, stimulus section.


Thanks, wulf! I know I'm interested in keeping up to date on it! Thanks! :D


Submitted by cannr on Sun, 02/17/2008 - 05:15

cannr

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You do your part well! :wink:


Submitted by cannr on Sun, 02/17/2008 - 16:33

cannr

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I'm with you, ladybug! :lol:


Submitted by cannr on Sun, 02/17/2008 - 18:37

cannr

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I have an off the wall question when it comes to the rebates.. when I filed my 07 return , the tax preparer got my address wrong, she said she corrected it,and I was told that it transmitted correctly to the IRS.( I got a RAL)but I found out when I was looking for the State refund ck , that they still had the wrong address...

so.. what do I do? call the IRS and see if they have my correct mailing address now?

arrg.
thanks!


Submitted by lorim1971 on Mon, 02/18/2008 - 09:00

lorim1971

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lori, did you have your refunds direct deposited into your bank? If you did, then you don't have to worry about this. If you had your refund checks direct deposited into the bank, the "rebate" check will also be direct deposited. However, if you're expecting them to mail you a check, I'd be all over it making sure they have my correct address!!


Submitted by cannr on Mon, 02/18/2008 - 10:06

cannr

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Good question, ladybug. I haven't read anything on "how" they're going to send them. Anyone know?


Submitted by cannr on Tue, 02/19/2008 - 04:04

cannr

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When you file your 07 return you can either have it mailed to you or Direct Deposited.

The ADVANCE you receive against next years ANTICIPATED refund will be handled much the same way..

The treasury will send out a notice telling when to expect your advance. If you chose to have your 07 returns mailed it will arrive in 10 days. However,if you chose Direct Deposit its possible it will be deposited the day you receive the notice.


Submitted by Roadwarrior on Tue, 02/19/2008 - 19:14

Roadwarrior

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I've been trying to keep my eye on it on (www)irs.gov. However, I've also googled everything under the sun regarding it. From what I've found so far (besides what roadwarrier posted above) is that they are going to begin sending them in May. The first people to file their taxes will get their refunds first, before the others who wait until the deadline. Also, I "heard" (so this may not be fact) they they are going by the last two digits of your social security number (?). Okay..... If you had your tax refund direct deposited, they will automatically deposit the tax rebate into the same account rather than mailing a check. Now, my question - I've heard that this is going to affect our taxes when filing next year. roadwarrier, do you know anything about this? I've heard that we're going to have to "claim" it??? Now, when they did the tax rebates back in 2001, they did not affect our next years taxes at all. However, I'm hearing differently on this one. Kind of has me concerned.


Submitted by cannr on Fri, 02/22/2008 - 19:26

cannr

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This Reabate will REALLY come at a good time, for me. I'm going out of state, for vacation this year nad the money will come in handy. WOW!! Anything, like that will be helpful.


Submitted by sdchargers_63 on Sat, 02/23/2008 - 02:17

sdchargers_63

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Thanks, roadwarrior. Now, this really ticks me off. Not to say that I won't take the check they deposit into my account; however, I can now look forward to being totally screwed next year. Of course, I can take the advice of others and "put it in savings and give it back next year". I'm going to be realistic though. I have bills to pay. I honestly don't understand (well, yes I do) why this is not CLEARLY stated to everyone. It's kind of like finding out a secret and it's being passed along. Why the hell are we going to have to suffer next year? In 2001 they didn't pull this. I was afraid to know the answer, roadwarrior. But I have heard too many rumors about it. Then I saw your post. So, next year should I send them a thank you note when I end up having to PAY taxes to them? This kind of bites. :evil:


Submitted by cannr on Sat, 02/23/2008 - 07:38

cannr

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I guess you can look at this issue BOTH ways...good for some people, bad for others. This will count, for income, for 2008? WOW...I din't know that. At the same time, it sure will help.


Submitted by sdchargers_63 on Sat, 02/23/2008 - 08:11

sdchargers_63

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This whole thing just cheeses me off--and is one reason I for one am glad that Dubya will be riding his horse back to Texas next year. I also heard that it's not an advance on next year's refund--which leads me to believe that once again, the right hand doesn't know what the left hand is doing in Washington DC (big surprise, NOT).
So what the government is counting on is for everyone to love them this year while we're spending our checks--and when the bill comes due next year, they'll be long gone!! Now ladies, say with me: JUST LIKE A MAN!!!!!!


Submitted by kscornell on Sat, 02/23/2008 - 09:04

kscornell

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Thanks for the advice, roadwarrier. I think it's a good idea. I'm with sd on this too though. I mean, Lord knows I could use the money; however, come next year I'll be in a world of hurt! On the irs site, one paragraph just jumped out at me. It was stating that we would get two letters (?) from the IRS. The first one stating if we are eligible and how much and when to receive it. The second one stating "how to handle it for your 2008 taxes". So, to me, that says we are going to have to "claim" it or whatever. So, yes, it is an "advance". Unreal. Roadwarrier, you said to adjust your w2's accordingly and that you already did this. What does that mean? Call me stupid! But what do you mean? What should I be doing?


Submitted by cannr on Sat, 02/23/2008 - 12:13

cannr

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Does anyone happen to know when we will recieve letters, from the IRS? Anyone who filed taxes, for 2007, is eligible? Do I understand that correctly?


Submitted by sdchargers_63 on Sun, 02/24/2008 - 02:56

sdchargers_63

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Here is some more information for you. Hope it helps :)

Quote:

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.

Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.


Submitted by spatterson_40 on Sun, 02/24/2008 - 04:51

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Here is some more information. What do you all make of it. If I remember right, last time they did this, I did not get the full amount. I believe what ended up happening was my child credit was reduced by the amount I recieved. I am wondering if this is what they are going to do next year. Reduce your credit by the amount you received.

Let us all know what you think.

Quote:

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

Q. I don????????t qualify for a stimulus payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?

A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.


Submitted by spatterson_40 on Sun, 02/24/2008 - 05:02

spatterson_40

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Hey, s, where did you find this information? This second post, I mean. I've looked at EVERYTHING (so I thought) and this never showed up. Was it on the irs site? So now I'm beginning to wonder what to honestly believe! LOL! Now they're saying it won't affect next years taxes (which the 2001 rebate did not). Hmmmm... I guess we can just keep watching/listening and see. I hate this though. I don't like being kept in the dark.


Submitted by cannr on Sun, 02/24/2008 - 05:24

cannr

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Thanks for the information. Seems like there are more and more 'guidelines' added every few weeks..LOL I don't know if that's really true, but, that's my opionion. I DO have, at least $3000.00 taxable income. Does that qualify me?


Submitted by sdchargers_63 on Sun, 02/24/2008 - 06:56

sdchargers_63

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My wife and I received the notice about the stimulus payment but my grandson who lives with us did not. He made almost $8,000 last year and he had the refund sent directly to the bank. I am concerned as to whether he will be receiving a check because he did not receive the notice from the Treasury.

A. Grounds :?


Submitted by on Sun, 03/16/2008 - 16:57

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Cannr, you can have a look at the IRS website to find out what to expect. There's now an online calculator that tells you the amount you should recieve, based on numbers from your 2007 tax return. [You'll need a copy of your return to use it, unless your memory is worlds better than mine.] There's a link in my sig.


Submitted by unclewulf on Mon, 03/17/2008 - 03:13

unclewulf

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Thanks, 'Roadwarrior'.........infor, on this is a good thing. Got a letter, from the IRS, that I "qualify." Sounds good to me!! Sure can use it right now.


Submitted by sdchargers_63 on Tue, 03/18/2008 - 03:18

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