Economic Stimulus Guide

Guide to the Economic Stimulus Plan via Vern Ehlers:

In February, Congress and President Bush approved a $152 billion economic stimulus plan that will provide tax refund checks to individuals and families, as well as tax incentives intended to spur business investment. You may be wondering if you or your family qualify for a refund, and if so, how you can claim it.

Around two-thirds of the funding created by the stimulus plan will go directly to eligible taxpayers. Taxpayers who made more than $3,000 during 2007 and who pay federal income tax will receive a rebate check of $600 ($1,200 for married couples filing jointly). Eligibility will phase out for individuals who make more than $75,000 ($150,000 for married couples filing jointly). Eligible individuals or families will receive an additional $300 for each dependent child under the age of 17 in their household.

Additionally, anyone who earned at least $3,000 in “qualifying income” during 2007 but paid little or no income tax will qualify for checks of $300 ($600 for married couples filing jointly). “Qualifying income” includes wages, Social Security benefits, and payments to disabled veterans or their survivors. Safeguards are in place to ensure that illegal immigrants will NOT be eligible to receive these benefits.

In order to receive the benefit, all you need to do is file a federal income tax return for 2007, even if you don’t owe any income taxes. If you qualify, you will receive a check in the mail this May.

Unfortunately, there are some crooks and scam artists taking advantage of this and are trying to lure victims into providing personal information. The IRS does not gather information by phone nor does it send unsolicited emails to taxpayers. Be wary of anyone claiming to offer you a refund, and do not give out your Social Security number or bank account information over the phone or through e-mail.

If you have more questions about the stimulus payments, the IRS has a comprehensive Web site on the issue: Economic Stimulus Payments Information Center

If you are a business owner, the IRS has information on tax incentives for businesses provided by the Economic Stimulus Act: 2008 Economic Stimulus Act Provides Tax Benefits to Businesses.