The basic plan is that taxpayers will need to file their 2007 tax returns before they can receive their rebate checks. Even though the rebates are technically for 2008, the IRS will calculate the rebates using income information from the 2007 return.
Some people, however, normally don't need to file a tax return because they earn less than the filing requirement. And many retired people living solely on Social Security or veterans' disability pensions usually don't need to file at all since their benefits are non-taxable. This year, however, pensioners and disabled veterans will need to file a return, even if they don't have a dollar of taxable income. The IRS will need individuals to file a return and indicate that they are receiving income that qualifies them for the 2008 tax rebate.
More information about the rebates:
- Basic Overview of the 2008 Tax Rebates
- The Skinny on the Stimulus Plan [from the Wall Street Journal]
- Information on Stimulus Package
- Facts about the 2008 Stimulus Payments
- IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate
- Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits
- IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting
So what?
The REAL question, which no one yet is publishing, is….
Will the so-called “rebate” be treated as “taxable income” on the 2008 Federal and State tax returns????
Anwser this question and then you are REALLY reporting something worthwhile instead of just paraphrasing the info already on the IRS website!
The rebates are not taxable income.
This is the most useless distribution of money yet!!! Our family will get a trivial amount of money compared to our savings which took a lifetime of investing.
With all our retirement pensions and SS we have a surplus of more than the refund each month. And our investment money is still reinvested and not used for living expenses.
On the other hand the really poor who survive, if that is possible, on welfare or less are excluded. And many of those on SS will not understand that to get their funds they must file a return.
When will the administration show common sense before increasing the debt? I forgot: common sense is an oxymoron!!!