Economic Stimulus
Starting in May, the Treasury will begin sending rebate checks to more than 130 million Americans as part of the recently passed economic tax package. If you believe you are eligible to receive a check, you will need to fill out a tax return in 2007, even if you don't normally file a tax return.
Eligibility for checks is determined based on tax liability. Each adult with more than $600 of tax liability in 2007 will get at least $600, and couples will get $1,200, with an additional $300 per child. Due to the serious risk of fraud, both taxpayers and their children must provide eligible Social Security numbers in order to be eligible. Without valid Social Security numbers there will be no payment. Eligibility is subject to maximum income limits, and payments will be reduced by 5% of the amount of income in excess of $75,000 ($150,000 for couples).
In addition, Americans with very little or no tax liability at all may qualify for the checks if they owe at least $1 in taxes or $3,000 of earned income. In this case, individuals will qualify for a $300 payment ($600 for couples). Qualifying income includes wages and net self-employment income as well as Social Security, Railroad Retirement benefits and veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. Supplemental Security Income (SSI) does not count as qualifying income for a $300 payment. Non-Social Security pension income also does not count toward a payment.
Free tax help is available to low- and moderate-income workers, including veterans, who can call the Volunteer Income Tax Assistance (VITA) program with questions. Your local Taxpayers' Advocate office should also be able to provide assistance. Individuals can call the VITA phone number toll free at 1-800-906-9887.
Throughout this entire debate I believed it was important that we not increase taxes permanently to "pay-for" this short-term tax relief and new spending, though Congress should have taken a closer look at areas in our over-sized budget that could be reduced. I voted for the final bill, but I believe we missed a golden opportunity to focus on tax relief that would actually encourage greater economic growth and secure a prosperous U.S. economy over the long-term.
Additional information about how to receive stimulus checks:
http://www.irs.gov/newsroom/article/0,,id=177937,00.html
