Columns
Thursday, March 27, 2008
common sense on: tax rebate checks & the economic stimulus package
With Senator Tom Harkin
What is the Economic Stimulus Package?
The current economic downturn is causing real pain for Iowans and people all across the country. For this reason, I supported efforts to craft an economic stimulus bill aimed at cushioning the effects of this downturn. The bill has many components, but the most talked about are “tax rebate checks” that will be sent to most Americans who file tax returns this year.
Who qualifies for a tax rebate check?
In order to qualify, individuals or families must have made at least $3,000 last year in “qualifying income,” except for those with very high incomes. Beyond just earned income, this qualifying income can include money from Social Security benefits, Veterans Affairs benefits and Railroad retirement benefits. This ensures that our retired seniors and veterans get help too. Iowans with those types of income must file a tax return noting it even if they do not need to do so for regular tax purposes. In addition, individuals must have a valid U.S. Social Security number and cannot be claimed as a dependent on someone else’s tax return.
How much money will people get?
Individuals should receive between $300 and $600, and couples who file a joint tax return should receive between $600 and $1,200. Parents will also receive an additional $300 for each child that is eligible under the Child Tax Credit.
Will this money come out of my tax return next year?
No. This payment will not affect your 2008 tax return or any future returns.
How do I receive my check?
The sooner you file a return, the earlier you will get your tax rebate check. The IRS provides free filing services at www.irs.gov for individuals filing taxes for the sole purpose of getting a rebate. The IRS has also set up a tax-rebate information line, 1-866-234-2942. The Volunteer Income Tax Assistance program also helps individuals with tax preparation, they can be reached at 1-800-906-9887. Iowans over age 60 can access the AARP Tax Aide at 1-888-227-7669.
What more can be done to help our economy?
While these tax-rebates will help many Iowa families, Congress must do more to help those who are feeling the harshest effects of our struggling economy. In the next stimulus package Congress considers, I will fight for increases to the food stamps program and extending the time people are eligible for unemployment benefits, two steps that will ensure Iowa families have access to these safety nets. We must also create jobs immediately by investing in infrastructure projects, such as repairing our roads, bridges, and schools. These projects will eventually be funded and built, but we should start them now, so that our economy can get the boost that comes with this work. I am also supporting legislation to help those in danger of losing their homes and will support efforts to better regulate the mortgage industry and financial markets so that the abuses that contributed to our economy’s downturn are prevented in the future.
