Here’s some good news for you and for us regarding the Economic Stimulus Act of 2008:
The IRS advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments beginning in May… 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.
The tax rebate is based on your 2007 earnings ($3,000 minimum) and Federal Income Tax liability. Taxpayers would be eligible to receive a rebate of up to $600, if you paid the Fed that much. For example, if you only paid $400 in taxes, you only get back $400. The minimum rebate is $300 ($600 for joint filers), and the maximum is $600 ($1,200 for joint filers). Qualified dependents get $300 each.
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.
To get an idea on how much you will get, use the Kiplinger rebate tax calculator.
