How will the 2008 economic stimulus package benefit you...
-According to IRS Spokesman Mark Green, “To get a payment, most taxpayers need do nothing but file their 2007 tax return as usual.”
-The IRS will calculate the payments based on information from your 2007 tax return and, if you qualify, send you a payment.
-Most filers who chose direct deposit on their 2007 tax returns will have their stimulus payments delivered the same way.
-Payments will begin in May and will go to more than 130 million taxpayers.
-Individuals whose 2007 adjusted gross income exceeded $75,000 ($150,000 for married couples filing jointly) may get a reduced payment or no payment at all.
-The payments will be a maximum of $600 for eligible individuals, $1,200 for married couples filing jointly. Add $300 for each qualifying child.
-People who have no tax liability but have at least $3,000 income for 2007 from earned income, Social Security benefits, certain Railroad Retirement or certain veterans’ benefits may qualify for a payment but MUST file a 2007 tax return to get one.
-Individuals who have no tax liability but qualify for a payment will each get $300 – but only if they file a 2007 tax return.
-The payments will not affect your 2007 or 2008 regular tax refund nor will they have to be paid back. They are not subject to federal tax.
-Taxpayers must have valid Social Security numbers to qualify for a payment.
-The IRS will issue two informational notices about the payments, but taxpayers should be wary of scams such as phone calls or e-mails from IRS imposters soliciting personal information and promising a “rebate” or other type of tax payment. The ONLY form you need to fill out to get a stimulus payment is your 2007 federal tax return.
-Check www.irs.gov for details and updates.
FACT SHEET:
EXAMPLES OF HOW THE ECONOMIC GROWTH ACT OF 2008 WILL BENEFIT
AMERICANS
Married with children*:
1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate = $600
Qualifying child credit = $600
TOTAL = $1,200
2) Married couple with two children, no wages, veterans’ payments of $2,000, social security benefits of
$2,000, no federal income tax liability before child tax credit.
Individual rebate = $600
Qualifying child credit = $600
TOTAL = $1,200
3) Married couple with two children, no wages, no social security benefits, veterans’ payments of $4,000, no
federal income tax liability before child tax credit.
Individual rebate = $600
Qualifying child credit = $600
TOTAL = $1,200
4) Married couple with two children, no wages, no social security benefits, no veterans’ payments, AGI = $25,000, federal income tax liability before child tax credit = $70.
Individual rebate = $600
Qualifying child credit = $600
TOTAL = $1,200
5) Married couple with two children, AGI = $35,000, federal income tax liability before child tax credit = $1,070.
Individual rebate = $1,070
Qualifying child credit = $600
TOTAL = $1,670
6) Married couple with two children, AGI = $80,000, federal income tax liability before child tax credit exceeds $1,200.
Individual rebate = $1,200
Qualifying child credit = $600
TOTAL = $1,800
7) Married couple with two children, AGI = $160,000, federal income tax liability before child tax credit exceeds $1,200.
Individual rebate = $1,200
Qualifying child credit = $600
Phaseout reduction = ($500)
TOTAL = $1,300
Head of household with children:
1) Single parent with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate = $300
Qualifying child credit = $600
TOTAL = $900
2) Single parent with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000,
no federal income tax liability before child tax credit.
Individual rebate = $300
Qualifying child credit = $600
TOTAL = $900
3) Single parent with two children, no wages, no social security benefits, veterans’ payments of $4,000, no
federal income tax liability before child tax credit.
Individual rebate = $300
Qualifying child credit = $600
TOTAL = $900
4) Single parent with two children, no wages, no social security benefits, no veterans’ payments, AGI = $20,000, federal income tax liability before child tax credit = $195.
Individual rebate = $300
Qualifying child credit = $600
TOTAL = $900
5) Single parent with two children, AGI = $22,000, federal income tax liability before child tax credit = $395.
Individual rebate = $395
Qualifying child credit = $600
TOTAL = $995
6) Single parent with two children, AGI = $60,000, federal income tax liability before child tax credit exceeds
$600.
Individual rebate = $600
Qualifying child credit = $600
TOTAL =$1,200
7) Single parent with two children, AGI = $90,000, federal income tax liability before child tax credit exceeds
$600.
Individual rebate = $600
Qualifying child credit = $600
Phaseout reduction = ($750)
TOTAL = $450
Married, no children:
1) Married couple with no children, wages of $4,000, no federal income tax liability.
Individual rebate = $600
2) Married couple with no children, no wages, veterans’ payments of $2,000, social security benefits of $2,000,
no federal income tax liability.
Individual rebate = $600
3) Married couple with no children, no wages, no social security benefits, veterans’ payments of $4,000, no
federal income tax liability.
Individual rebate = $600
4
4) Married couple with no children, no wages, no social security benefits, no veterans’ payments, AGI =
$20,000, federal income tax liability = $250.
Individual rebate = $600
5) Married couple with no children, AGI = $25,000, federal income tax liability = $750.
Individual rebate = $750
6) Married couple with no children, AGI = $60,000, federal income tax liability exceeds $1,200.
Individual rebate = $1,200
7) Married couple with no children, AGI = $160,000, federal income tax liability exceeds $1,200.
Individual rebate = $1,200
Phaseout reduction = ($500)
TOTAL = $700
Single, no children:
1) Individual with wages of $4,000, no federal income tax liability.
Individual rebate = $300
2) Individual with no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal
income tax liability.
Individual rebate = $300
3) Individual with no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax
liability.
Individual rebate = $300
4) Individual with no wages, no social security benefits, no veterans’ benefits, AGI = $10,000, federal income
tax liability = $125.
Individual rebate = $300
5) Individual with AGI = $12,000, federal income tax liability = $325.
Individual rebate = $325