Wading through the tax rebate information provided by the IRS can be time-consuming and confusing. Most people simply want to know if they are eligible for a tax rebate and how much the rebate will be.
Who Does Not Qualify for a 2008 Tax Rebate from the IRS
- Individuals without a valid Social Security number. An individual taxpayer identification number, or ITIN, does not count.
- Individuals with less than $3,000 of reportable income (qualifying or otherwise).
- High income taxpayers. Beginning at adjusted gross incomes of $75,000 for individuals and $150,000 for married couples, the tax rebate phases out by 5% of the amount of income over the AGI limit.
- Nonfilers in 2007. No 2007 tax return = no rebate.
- Dependents claimed on another person’s return. The individual filing the return will receive rebates for any qualifying dependents claimed.
- Filers of Forms 1040NR, 1040PR, and 1040SS. This includes non-resident aliens, residents of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Residents of U.S. territories will receive economic stimulus payments, but not from the U.S. government; their respective local governments will distribute payments.
One Reason the IRS Won’t Mail a Rebate Check: Outstanding IRS Tax Debt
Individuals should be aware that even if they qualify for a 2008 tax rebate, they will not receive a check if they owe the IRS money. The rebate will be used to offset any outstanding IRS tax debt.
Key Points to Remember about 2008 Economic Stimulus Payments
- The IRS will determine eligibility and calculate tax rebate amounts based on 2007 tax returns.
- Individuals will receive a notice in the mail with the amount they can expect to receive as well as a timetable for receipt.
- Economic stimulus payments will be mailed out beginning in May 2008.
- Individuals who paid tax in 2007 are eligible for maximum rebates of $600 per person ($1,200 if married, filing jointly) as well as $300 per qualifying child.
- Individuals who didn’t owe tax in 2007, but filed a return only to report qualifying income of $3,000 or more can expect to receive a $300 rebate check (or $600 if married, filing jointly) plus $300 for each qualifying child.
- Anyone who is expecting a rebate check, but moved since filing their tax return should update their mailing address on file with the IRS.
Free Tax Assistance
The IRS sponsors free tax assistance programs in local communities throughout the United States. Many individuals who qualify for tax rebates are also eligible for free tax preparation assistance through the IRS Volunteer Income Tax Assistance Program.
Source: IRS Website
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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