As you may already know, Congress recently passed an important bipartisan economic stimulus package (H.R. 5140) to help hardworking Americans who are struggling with the high costs of gas, health care, and groceries. At the same time, it will jumpstart our slowing economy and create new jobs. The stimulus package, which President Bush signed into law, will:
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Put $2.1 billion dollars’ worth of rebates into the hands of more than 2.5 million Marylanders—including seniors and disabled veterans—giving them extra money that can be spent to immediately reinvigorate the economy.
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Build on the child tax credit by offering a one-time rebate of $300 per child, without limitations.
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Expand financing opportunities for Americans in danger of losing their homes because of the mortgage crisis.
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Promote small business investment in new plants and equipment.
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Help create 500,000 jobs by the end of 2008.
To determine whether you are eligible to receive a tax rebate check or what you need to do to receive your check if you are eligible, I have included some frequently asked questions below. Additionally, I have posted information about the economic stimulus package on
my website.
If you have specific questions not answered below, you can find more information on the
Internal Revenue Service’s website, or you can contact my District Office at 410.685.9199.
Sincerely,
Elijah E. Cummings
Member of Congress
Economic Stimulus Rebates for Individuals: Frequently Asked Questions
Am I eligible for a stimulus check?
Generally, you are eligible if you file your 2007 income tax return reporting tax liability or have earned income, social security income, or disabled veterans’ benefits of more than $3,000. If you are claimed as a dependent on someone else’s return, such as your parents, you are not eligible. The credit phases out for those taxpayers with an adjusted gross income of $75,000 ($150,000 for a joint return) or more, generally at a rate of $50 per $1,000 of adjusted gross income above $75,000 ($150,000 for a joint return).
What do I need to file to get a stimulus check?
Most taxpayers will simply need to file a 2007 income tax return even if their tax liability would not typically require them to do so. There is no additional form needed for the stimulus check. The Treasury Department will determine the amount of the check based on your 2007 income tax return and will automatically send it to you. There are special filing instructions for recipients of Social Security, Railroad Retirement, and certain veterans’ benefits.
When will I receive my check?
Starting in May, the Treasury Department expects to begin issuing stimulus checks to more than 130 million individuals. It is anticipated that the checks will be issued over a period of months through the spring and early summer. When rebates were issued in 2001, the checks were issued over a period of 10 weeks. Since the check is based on information contained in your 2007 income tax return, the check will not be issued until you have filed your 2007 return and it has been processed. No checks will be issued after December 31, 2008.
What will be the amount of my stimulus check?
The Department of Treasury expects that the Internal Revenue Service ("IRS") will have an economic stimulus calculator on
its website for taxpayers to use to calculate the amount of their stimulus checks. Taxpayers generally will receive a rebate check of $600 ($1,200 in the case of a joint return). Most taxpayers with one dollar ($1) of income tax or $3,000 of qualifying income will be guaranteed a minimum rebate check of $300 ($600 for a joint return). "Qualifying income" generally is the sum of an individual’s earned income, Railroad Retirement benefits, Social Security benefits, and veterans’ payments. In addition, a taxpayer is eligible for an additional $300 for each qualifying child.
Who is a qualifying child?
A qualifying child for purposes of the stimulus check generally is a child who was under age 17 at the end of 2007, did not provide over one-half of his or her own support, lived with you for more than one-half of 2007, and has a Social Security Number.
Is the stimulus check taxable?
No. This amount will not be included in your 2008 gross income. The stimulus check is an advance payment of an additional, new tax credit related to your 2008 income tax return.
Will this check be direct deposited if my 2007 tax refund is direct deposited?
The Treasury Department will decide this. Some checks may be provided through direct deposit.
If my spouse and I filed a joint tax return for 2007, whose name will be on the check?
The check will be issued in the names on the 2007 income tax return. Even if you are now divorced, both parties must sign the check. The law provides that each spouse is considered to receive one-half of the check.
How can I get more information?
The IRS will mail two informational notices to taxpayers advising them of the stimulus check. The IRS website (www.irs.gov) also has information on the economic stimulus check. In addition, you can call the IRS at 1-800-829-1040.
Are tax preparation programs available if I need help?
If your adjusted gross income was $54,000 or less in 2007, you can use
Free File to prepare and e-file your taxes online.
In addition, the IRS offers programs to qualified individuals who need assistance preparing their tax returns - the Volunteer Income Tax Assistance (VITA) Program and the Tax Counseling for the Elderly (TCE) Program.
The VITA Program provides free tax help to low and moderate income (typically, $40,000 and below) people who are unable to prepare their tax returns on their own. IRS trained volunteers are available to help prepare basic tax returns in locations throughout the state. To find a VITA site near you, please call 1-800-829-1040.
The Tax Counseling for the Elderly (TCE) Program provides free one-on-one counseling and tax preparation services to people age 60 and older. Volunteers, trained by the IRS, are frequently retired individuals associated with non-profit organizations that receive grants from the IRS. To find TCE sites in Maryland,
click here and insert your zip code.
