Story Published:
Apr 2, 2008 at 10:47 AM PDT
For many of us, taxes are always confusing. But this year, with those economic stimulus package rebate checks on the table, it's even more confusing.
Here are the answers to some of the most commonly-asked questions about the rebate checks.
How do I find out if I'm eligible for the rebate?Most of us will get some rebate money, whether we owe taxes or get a refund on our 2007 tax return.
The IRS says some higher-income taxpayers will not receive a stimulus payment, but they may get a reduced payment.
Families with children under 17 generally will qualify for an additional payment.
Some people with tax liability will also qualify. This includes social security recipients, railroad retirement beneficiaries and those who get certain veterans' payments.
Plus low-income workers with earned income and/or benefits of at least $3,000 qualify as well.
What do I need to do to get an economic stimulus payment?Just file a federal income tax for 2007. Even if you're not otherwise required to file a tax return, you must file a 2007 return in order to receive that rebate payment.
Let's say you live on social security or VA benefits and you don't normally file a tax return. You need to file a return this year to get that rebate.
It's a form 1040A. The 1040A is a three pages long, but you only have to fill out about six lines.
You may have gotten a 1040A package from the IRS. If not, you can get one online at the
IRS Web site or in person at any IRS office.
What's the deadline if I'm filing a tax return this year just to get a stimulus plan?You must file by Oct. 15 if you want to get that check by the end of the year. Of course, the sooner you file, the sooner you'll get the money.
What if I get an extension for filing my taxes?If you do need to file a tax return this year and you received a 6-month extension, your rebate check won't be processed until your return is filed.
Will the rebate check reduce my refund or increase my taxable income in 2008?The rebate money is a one-time credit. That means it comes now rather than after you file next year's taxes. You will have to account for it when you file your 2008 taxes, but it is not taxable and it will not reduce the amount of your refund.
More information:Economic Stimulus Payments Information CenterYou can get questions answered at the IRS Rebate Hotline: (866) 234-2942.
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