An
estimated 131 million households will receive one time payments under an
economic stimulus law enacted on February 13th. Under the legislation,
people who pay federal income taxes can get up to $600 for individuals or
$1,200 for married couples, with an additional $300 per child.
Due to income limits in the law, higher income Americans will get
nothing. Rebates begin to phase out for incomes above $75,000 for
individuals and $150,000 for married couples.
Seniors who pay little or no income tax may be eligible for payments as
well.
$300 payments
will go to seniors, disabled veterans and veterans’ widows who can show
$3,000 in Social Security or veterans’ disability benefits. In addition,
workers who earned at least $3,000 last year, but not enough to pay income
taxes, will be eligible for payments of $300.
However,
to get a payment this year, you have to file a tax return for 2007.
This means that if you
had Social Security income in 2007 but no tax liability you need to file a
federal tax return this year. Filing a return will not change anything
about the taxability of your Social Security income, but you do need to
report that income on a tax return in order to receive the rebate. The
IRS will calculate the amount of your rebate from that tax return.
If you file your tax return in a timely manner, your rebate/stimulus check
should arrive in May or June. The rebate checks will not be subject to
income tax.
Seniors should be aware of the potential for con and identity theft
artists to use the rebate law as an opportunity to commit fraud. Some
seniors are already receiving unsolicited e-mails and telephone calls from
supported IRS agents claiming that the taxpayers are eligible for
rebates. The scammers then state that they need the senior’s
Social Security and bank account numbers in order to directly deposit the
rebate check into the senior’s account.
SUCH CALLS AND E-MAILS
ARE A FRAUD!
Never give out your personal information in response to unsolicited
telephone calls or e-mails.
webmail@paelderlaw.com or 1-800-401-5552