6 Things to Do to Qualify for a Stimulus Payment
The Bush Administration recently signed new legislation — the Economic Stimulus Act of 2008 — into law that will give more than 130 million Americans as much as $152 billion to redistribute back into the economy.
The payment amounts will equal the amount of one’s tax liability on their 2007 tax return ($600). That amount doubles for joint tax filers to $1,200. For taxpayers with little or no tax liability, but $3,000 or more in qualifying income, they may be eligible to receive $300 (for single filers) or $600 (for joint filers). And, tax payers with children will receive an additional $300 for each child.
However, not all Americans are eligible to receive the full $600 rebate. For example, if you make more than $100,000 a year you will not receive a refund.
If you’re not sure if you’re eligible for the stimulus plan, Jackson Hewitt Tax Service has developed six things you can do to qualify for the tax rebate.
1.) File Your 2007 Income Tax Return —
Not only may you have a tax refund coming your way, you many also qualify for a stimulus payment check.
2.) File Early —
The IRS will send out checks through December, but why wait? Get it in early and you are likely to receive your stimulus payment earlier.
3.) E-file —
Give yourself the convenience, speed and assurance that your income tax return is received.
4.) Zero Income, Zero Tax and Zero Payment…Make Sure You File —
Certain qualifying individuals, including seniors, who meet this criteria and may not typically file an income tax return, will need to file, by filing a paper Form 1040A or Form 1040.
5.) Watch Out for Your Two IRS Notices —
Most taxpayers will receive two notices from the IRS; one explaining the stimulus payment program and another confirming the recipients’ eligibility, the amount and the approximate time table for the payment. Save the second notice to help in preparing your 2008 tax return next year.
6.) Vets Must File the Right Form —
Veterans’ benefits recipients must file Form 1040X to list non-taxable benefits, if they have already filed a 2007 return and received less than $3,000 in qualifying income; or for those who are normally not required to file an income tax return, they must report their benefits of $3,000 or more on Form 1040A or Form 1040, to establish their eligibility.
If you need help trying to establish your eligibility for the rebate check, visit with your on-base financial counselor — they can go through the necessary paperwork with you.