- Personal Finance
2008 Tax Rebate Plan – Right from the source
2008 Tax Rebate Plan - What you need to know
** IRS Article link below updated March 10, 2008 **
The IRS has recently passed the 2008 Tax Rebate Plan, and is providing taxpayers a rebate, or "stimulus payment", in mid-2008 based on 2007 income information. Additionally, certain eligibility requirements must be met.
The Best Source
I have been following the online articles and news regarding the 2008 Tax Rebate Plan. I have searched for updated information, then I went right to the source, the IRS's website, and I found it the most accurate and informative.
According to this article, "The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments."
You must file your return by April 15, 2008, in order to start receiving your check in May 2008. If you file late, then you probably will not receive your check until December 2008.
Who Will Get the Rebate
Most single taxpayers will be eligible for a $600 rebate, and married couples who file jointly will be eligible for $1,200. Taxpayers with dependent children under age 17 will be eligible for an additional $300 per child. A typical family of four with two children would receive $1,800 ($1,200 married couple + $300 Child 1 + $300 Child 2).
What If You Do Not Owe Income Tax in 2007?
Individuals must file a 2007 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.
Even if you didn't owe any tax, you're still eligible for a rebate of $300, or $600 for married couples, as long as you had at least $3,000 in earned income, Social Security benefits, veteran's disability payments or a combination.
So, make sure your retired relatives and friends file a return!
IRS Article Also Provides Stimulus Payment Examples
The eligibility for and amount of stimulus payments to taxpayers will vary according to their income and family situations. I would suggest you read the article and the various scenarios it provides to you. (Source: IRS Website)
My Two Cents
Many critics have said this is a bad idea, and the US Government should put that money into educational programs, schools, and other programs. Damned if you do, and damned if you don't.
I have spoken to people close to me and they are so excited about receiving the money. I ask everyone what they plan to do, and everyone has plans to spend it on a vacation, something for their house, or a paying off some debt.
My opinion is - thank you IRS, I will take the money.