Random Information on the Economic Stimulus Rebate Payments

• IRS will begin sending taxpayers their payments in early May.
• A payment schedule is expected to be announced shortly
• Taxpayers who requested direct deposit for their 2007 federal refund will have their stimulus payment direct deposited.
• The payment amount will be the amount of tax liability on the 2007 tax return up to a maximum of $600 for individuals and $1,200 for joint filers.
• Taxpayers with no tax liability but at least $3,000 of qualifying income will be eligible to receive a payment of $300 for individuals and $600 for joint filers
• Qualifying income includes Social Security benefits, Railroad Retirement benefits, Veterans’ benefits and earned income.
• Dividends, interest and capital gains income is not included when determining qualifying income.
• Many low income people who may not normally be required to file a tax return must file a 2007 return in order to receive a payment.
• Recipients of Social Security, Railroad Retirement benefits and Veterans’ benefits should report the nontaxable amounts on line 14a of Form 1040A or line 20a of Form 1040.
• Taxpayers who have already filed but did not report the amount of benefits received should amend the return by filing Form 1040X.
• The Social Security Administration and Department of Veterans Affairs are working with the IRS to ensure that recipients are aware of this issue.
• Payments to higher income taxpayers will be reduced by 5 percent of the amount of AGI above $75,000 for individuals and $150,000 for joint filers.
• Individuals must have valid Social Security Numbers to qualify for the stimulus payment. Both taxpayers must have a valid Social Security Number for jointly filed returns.
• Children must have valid Social Security Numbers to be eligible as qualifying children.
• Filers who use an Individual taxpayer Identification Number issued by the IRS to file their returns are ineligible
• Individuals who can be claimed as dependents on someone else’s return are ineligible.
• Taxpayers who file Form 1040-NR, 1040-PR or 1040-SS are ineligible
• The IRS will continue to send payments until December 31, 2008.
• Taxpayers that move their residence after they file their 2007 tax return should file a change of address card with the U.S. Postal Service as well as Form 8822 with the IRS.
• Two informational notices will be mailed by the IRS advising taxpayers of the stimulus payments.
• The IRS will not call or send e-mails about the stimulus nor will it ask for financial information.
• Taxpayers who receive calls or e-mails seeking financial information should notify the IRS at phishing@irs.gov.
• Stimulus payments will be subject to offset against outstanding tax and non-tax liabilities similar to tax refunds.
• Stimulus payments will not negatively impact any income-based government benefits, such as Social Security benefits, food stamps and other programs.
• Stimulus payments will not be taxable.