NEW YORKERS MUST FILE TAX RETURNS TO CLAIM ECONOMIC STIMULUS TAX REBATE

From the Children's Defense Fund - New York

On February 7, 2008, Congress passed a $168 billion economic stimulus package to help boost economic activity and provide Americans with extra cash to meet their daily needs. As part of the economic stimulus package, more than 130 million people will receive a tax rebate starting in early May. However, in order to receive the rebate, they must file a federal tax return.

The New York Times reports that almost everyone will receive a check of at least $300, including low-income workers who must have had earned income of at least $3,000 in 2007. Social Security recipients and disabled veterans with income above $3,000 will also receive $300. (Social Security benefits and veteran’ benefits can be counted towards the $3,000 income requisite.) Single people who pay income taxes will receive up to $600, married couples filing jointly will receive up to $1200, and an extra $300 per child will be allotted to families with children. The income threshold to receive the maximum rebate is $75,000 for individuals and $150,000 for married couples filing jointly. Partial rebates will be issued to individuals earning up to $87,000 and married couples filing jointly earning up to $174,000. Families with children have higher income thresholds.

Because the Internal Revenue Service is issuing the rebates, it is imperative that those who would like to receive a rebate file their 2007 federal tax returns. Even those who did not earn enough money in 2007 to necessitate filing now need to file in order to receive the tax rebate. (Lower-income workers who file their federal and state returns could also be eligible for additional money through refundable credits such as the Earned Income Tax Credit or Child Tax Credit.) Those who have already filed do not need to do anything else. The IRS will determine eligibility and payment allotment.

Filers must have a Social Security number to receive the rebate. Both spouses of a married couple filing jointly and any qualifying children must have Social Security numbers. Taxpayers with an Individual Taxpayer Identification number, or ITIN, are not eligible for the rebates, nor are undocumented immigrants. Taxpayers who can be claimed as a dependent are also ineligible.

The IRS reports it will send two written notices (the first in March) regarding the rebates to taxpayers who filed a 2006 tax return. (The IRS will notify likely recipients of the tax rebate based on their 2006 returns but gauge their eligibility once the 2007 returns have been filed.) The agency warns consumers to exercise caution about tax rebate scams requesting private financial information over the phone or email.

To calculate your tax rebate, please click on this link for an economic stimulus rebate calculator: CALCULATOR

For more information on the tax rebates, visit www.irs.gov or 1 (800) TAX-1040.