Economic stimulus plan refunds

General 1 Minute

My phone is ringing off the hook regarding the tax rebate checks that are going to be issued later this year as a part of the economic stimulus package. The IRS has a page summarizing the payments here and the FAQ is here. One thing that requires emphasis: people who may not have had to file in the past have to file a return by April 15 in order to be eligible to receive the money. From the FAQ:

This group includes some recipients of Social Security, Railroad Retirement or veterans’ benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.

And I strongly suggest that these people not pay a preparer to file their returns. While the IRS’ Free File system cannot be used at this time, there are a number of places where the returns will be prepared for free. Alternatively, stimulus-only filers can prepare a form 1040A (pdf) using these instructions (pdf) and mail in the return.

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12 thoughts on “Economic stimulus plan refunds”

  1. Pingback: Economic stimulus plan refunds update « VIVIAN J. PAIGE

  2. March 17, 2008

    Vivian,

    I filed a 1040A IRS return for 2007 including my wages from three part-time jobs that totaled $2,326 on line 7 from my W-2 forms. I was a student worker at a community college from March 2005 to February 2007, and I took less than six credit hours each quarter. The criteria for less than six credit hours mandated my employer to deduct contributions from my earned income to the Ohio Public Employee Retirement System (PERS). I filled out a form to reimburse the income paid to PERS when I left this employer on February 2007. I was paid $878.48 and later received a 1099-R for the Total Distribution including $175.68 taxes paid. This was entered on line 12b which brought my total income to $3,204 on line 15. I paid $52 in taxes for my wages and $176 for PERS. My Tax Return, including Earned Income Credit was $406 for 2007.

    Is the minimal income of $3,000 just from wages on line 7 or the total income on line 15? I also receive Social Security Disability with the amount of $13,174 recorded on line 14a and this amount was not taxable. Several Web sites state income includes “Social Security retirement, survivor and disability benefits.” I am confused, because the same Web sites also exclude this type of income.

    I hope this isn’t to confusing. I would like to know if I qualify for the Economic stimulus plan refunds. Thanks for any help you can clarify “income” for the Economic Stimulus Plan Refunds.

    Scott G. Thornburg

    I hope this isn’t to confusing. Thanks for any help you can clarify income for the Economic Stimulus Plan Refunds.

    Scott G. Thornburg
    thornburgscott@yahoo.com
    937-299-8370

  4. Scott – the $2,376 in wages counts, plus the Social Security disability. So you would be entitled to at least $300 ($600 on a joint return)

  5. Vivian,

    Thank you very much for the information concerning my ‘Economic stimulus plan refund’. It means a lot knowing that I will get some financial help in May. My disability has prevented me from working the last two months, and I’m finically strapped.

    Thanks again for your time and consideration,

    Scott G Thornburg

  6. Vivian,

    I’m looking for “down the road info” on the economic stimulus. Do you know if the amount of rebate received will have to be claimed as income when it’s time to file tax returns for 2008 ?

  10. Vivian,

    I get benefits from the Ohio Public Retirement System and it is my only source of income. I field a tax return this for with wages at about $25,000 for the year. Do I qualify for an economic stimulus check? Thanks.

    Tom

  11. I have not gotten any refund, even though I filed in Feb, received my refund in March 9, direct deposit, and my social security number ends in 11. I had in considerably more than the $600. Is there a delay in the refunds as the IRS site states “by May 2”

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