Tax Topics

Economic Stimulus Payment

As you may be aware, congress has passed an economic stimulus payment plan, which is designed to help jumpstart our lagging economy.  Starting in May, the U.S. Department of Treasury will begin sending out the economic stimulus payments.  To be eligible for the rebate an individual needs to have a valid social security number and have at least $3000 in income.

For those eligible, a person will receive between $300 and $600 as an individual or between $600 and $1200 if they are married.  In addition, if the taxpayer claims a dependent child under the age of 17 they will receive $300 for each child.  For those with higher incomes the rebate may be reduced or eliminated.  For more information on the amount that can be received please visit the IRS’ online rebate calculator at www.irs.gov/app/espc.

The rebate amount will be based on the 2007 Federal Tax Return.  To make sure the payment is received on time the return must be filed by April 15th.  Also, if the return is  e-filed and bank information is included the IRS will automatically deposit the payment into that bank account and it will be received during the first three weeks of May. 

The new law also allows taxpayers who only receive Social Security or Railroad Retirement benefits to be eligible for the rebate.  Usually, these individuals are not required to file a federal return, but in order to receive the payment they must file either Form 1040 or 1040A.

If you have any questions please visit www.irs.gov or contact Sonja Brookins by
or (253) 473-0656 x112.

This information is being provided by Shelgren Financial Group, Inc. and intended for education purposes only and is not intended to be tax or legal advice. You should not rely solely upon this information when making decisions. Shelgren Financial Group, Inc. strongly recommends that you consult the appropriate tax, legal or other professional before acting on any of the content of this article.