Entry bubble The American Recovery and Investment Act and You

By: Jake | February 23, 2009 | Category: Money

MoneyPresident Barack Obama signed the American Recovery and Reinvestment Act into law last Tuesday and shortly after he signed it the National Contact Center had people calling and emailing about getting a check because of the new law.

The law the President signed last week doesn't give anyone a stimulus payment or tax rebate check and it probably won't affect your 2008 income tax return. Even before the law was passed some people were already eligible for more 2008 stimulus payment money, specifically those who made less income in 2008 than in 2007. If this is your circumstance, you should check to see if you are eligible for the Recovery Rebate Credit.

About $288 billion of the $787 billion from the new law will be for tax relief. According to the Internal Revenue Service, there are two tax provisions in the law that could bring you some extra cash this year.

The "Making Work Pay" tax credit will give a refundable tax credit to individuals with an adjusted gross income up to $75,000 or $150,000 for married couples filing jointly. The credit will be applied to paychecks with tax withholdings, and you can calculate the amount for you here. Some people who receive benefits from the Social Security Administration, Veteran's Affairs and Railroad Retirement Board will receive an Economic Recovery Payment from the agency that grants their benefits.

Recovery.gov is where you can find out about where the other $499 billion will go. The White House has created a website to get your feedback on the law. What do you think of it? 

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Entry bubble Unclaimed Economic Stimulus Payments

By: Jake | August 04, 2008 | Category: Money

I was surprised to see the Internal Revenue Service report last week that it was sending information packets to 5.2 million people in the U.S. who may be eligible for economic stimulus payments and have not filed yet.

Animated Tax GuyMy rebate check is long spent and all that's left to look forward to are state sales tax holidays, (assuming of course I have cash in my spare money envelope). As of July 11, the IRS had issued 112.4 million payments totaling $91.8 billion. The agency has completed most of the direct deposit and mail payments for people who filed their taxes before the April 15 deadline.

Those of you who have filed after the deadline should expect your payment 8-12 weeks after your file date. If it has been more than 8 weeks and you haven't received your payment, or you received a different amount than you expected, the IRS says you can call the toll-free rebate hotline at 1-866-234-2942 or visit a local IRS office to find your payment. Keep in mind your payment will go to your last known address the IRS has on file, so if you have moved and have not received your payment you should fill out a U.S. Postal Service form.

The IRS information packets are going to retirees and veterans who do not normally file a tax return. The IRS has accounted for about 75 percent of the approximately 20 million Social Security and Veterans Affairs beneficiaries identified as being potential stimulus recipients. Payments are based on 2007 tax returns being filed this year and you must file by Oct. 15 in order to get a payment in 2008. If you don't file this year, you can still receive a stimulus payment next year, but it will be based on your 2008 qualifying income.

Beware of email scams asking you to send bank account information in order to receive your stimulus payment. The IRS will not call or email taxpayers about these payments. If you receive a scam email, forward it to the IRS. Remember that the IRS will only contact you by mail about these payments.

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