Saturday January 03, 2009
Economic Stimulus
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| Responsible Funding for Idaho Projects |
| Stop Over-Spending (S.O.S.) Act (S. 15) |
| Action on Budget & Fiscal Responsibility |
An economic stimulus package (H.R. 5140) passed Congress in February 2008, and was signed by the President a few days later. Although I remain concerned that this package is not the best way to assist our economy in the short and long term, it is something that many Idahoans have questions about. The federal government began sending rebate checks in May 2008, and will continue through July.
Below are some key questions and answers about the rebate program, as provided by the IRS (Internal Revenue Service).
Q: Will receiving an economic stimulus payment in any way affect my eligibility for other federal benefits, such as temporary assistance for needy families, food stamps or Social Security? Will it count as income for purposes of my Social Security benefits?
A: No. The stimulus payments will not have any effect on eligibility for federal benefits.
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.
Q. I'm eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?
A. Yes. For this purpose, the stimulus payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support. If this occurs, you will receive a letter explaining how the stimulus payment was applied.
Q. When will the stimulus checks be sent out?
A. Below is a chart showing when stimulus checks will be sent out:
Direct Deposit Payments |
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If the last two digits of your Social Security number are: |
Your economic stimulus payment deposit should be transmitted to your bank account by: |
00 – 20 |
May 2 |
21 – 75 |
May 9 |
76 – 99 |
May 16 |
Paper Check |
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If the last two digits of your Social Security number are: |
Your check should be in the mail by: |
00 – 09 |
May 16 |
10 – 18 |
May 23 |
19 – 25 |
May 30 |
26 – 38 |
June 6 |
39 – 51 |
June 13 |
52 – 63 |
June 20 |
64 – 75 |
June 27 |
76 – 87 |
July 4 |
88 – 99 |
July 11 |
For more information, please review the documents listed below:
IRS News Release on Stimulus Payments, February 13, 2008
Fact Sheet on 2008 Stimulus Payments, prepared by the IRS
Stimulus Payment Exceptions, prepared by the IRS
Sample IRS 1040 Form, prepared by the IRS
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