FOR IMMEDIATE RELEASE:

IRS TAX REBATE CHECKS - 2008 ECONOMIC STIMULUS PAYMENTS

In order to stimulate the economy, the government has approved tax rebate checks for those who file income tax returns for 2007.

WHO QUALIFIES FOR A TAX REBATE CHECK?

The IRS will soon be issuing tax rebate checks to anyone who cannot be claimed as a dependent on someone else’s tax return and has a valid social security number who has earned at least $3,000 in qualifying income. Qualifying income consists of earned income such as wages, net self-employment income, Social Security income, certain Railroad Retirement benefits and veterans’ disability compensation. It does not include dividends, interest, capital gains, Supplemental Social Security income or income from pension and individual retirement accounts.

WHAT IS THE AMOUNT OF THE REFUND?

For individuals with income less than $75,000, there will be a minimum of $300 and for married individuals filing a joint return with income less than $150,000 there will be a minimum of $600. If you had a tax liability greater than $300 for individuals or $600 for married couples filing joint returns, your rebate check will be what your tax liability on your 2007 tax return is up to $600 for individuals and $1,200 for married couples filing joint returns. If you earn more than $75,000 for individuals and $150,000 for married couples filing jointly, the amount will be reduced by 5 percent of the amount of income in excess of these amounts.

Parents will also receive an additional $300 for each qualifying child who is eligible under the Child Tax Credit and has a valid Social Security number.

HOW DO I GET THE REFUND CHECK?

You only need to file a tax return for 2007 even if no tax is due. The IRS will then determine eligibility, figure the amount and automatically send you a tax rebate check. If you had your refund from your 2007 tax return direct deposited, then the IRS will automatically direct deposit your tax rebate check. For those that would normally not file a tax return such as low income earners, Social Security recipients, certain Railroad retirees and veterans’ disability recipients, in order to get your tax rebate checks, you will need to file a tax return even though no tax is due.

WHEN SHOULD YOU EXPECT YOUR TAX REBATE CHECKS?

The IRS will begin sending out checks starting in May and throughout late spring and summer. If you file your return after April 15th, your tax rebate check will take longer to arrive.

WHAT ARE YOU GOING TO DO WITH THE MONEY?

I’m sure you’ll figure something out, but the government would like you to spend it as soon as possible.

Go to www.dgoodmancpa.com for more helpful information for individuals and small businesses.

This article was intended to provide general information regarding the 2008 economic stimulus payments and tax rebate checks. It does not contain all the rules and exceptions that may apply to your situation. If you have further questions, I can be reached at www.dgoodmancpa.com.

About the Author

Dianne Goodman, CPA, FCPA - Specializes in servicing Small Businesses and Individuals. Visit www.dgoodmancpa.com for relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-888-851-1975.

CONTACT INFORMATION:

Dianne Goodman, CPA, FCPA
Comprehensive Small Business Solutions, PC
505 323-2307
1 888-851-1975 toll free
www.dgoodmancpa.com