Tax rebate questions keep coming
It would be a lot easier if Uncle Sam just cut a tax rebate check to every household. That's because the way Congress set the rebate up has led to mass confusion.
Questions are pouring in. And IRS spokesman Jim Dupree in Baltimore has been responding as quickly as he can find the answers. In the latest Q&A:
Q. Once filling out a 1040A, where do I mail it?
A. If you live in Maryland, mail your IRS Form 1040A to: Department of the Treasury, Internal Revenue Service, Andover, MA 05501-0015.
Q. Does it make a difference if I use a 1040 or 1040A? The library had only a 1040 form.
A. You can use the 1040 form. Recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X.
Q. On a joint return, does each spouse have to have qualifying income to get the rebate?
A. No. If the joint return has a combined income of at least $3000, and both spouses has a valid social security number, they should qualify.
Q. A great article on IRS rebates. My question is: Will an individual receive his/her rebate if he/she owes Federal taxes and is paying them on an installment plan? In other words, will the IRS intercept the rebate and apply it to his/her taxes owed? No one has addressed this in any of the numerous articles I’ve read on the subject.
A. Yes. For this purpose, the stimulus payment is treated like any other tax refund. This means that part or all of your payment may be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support. If this occurs, you will receive a letter explaining how the stimulus payment was applied.
Q. If you need at least $3,000 to get the minimum stimulus payment of $300, how much income do you need to get the $600 rebate?
A. For most people, the stimulus payment amount will equal to the amount of tax liability on the tax return, with a maximum amount of $600 for individuals and $1200 for taxpayers filing a joint return.
The law also allows for payments to select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivor’s benefits received from the Department of Veteran’s Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had a least $3,000 of qualifying income.
Comments
no one will answer my question if i owe taxes and are paying them by the month on time will i get my rebate
Well, you won't get a rebate check sent to you, according to the IRS. Instead, your rebate will be applied to your outstanding taxes that you owe. - Eileen Ambrose
Posted by: larry.W scott | June 5, 2008 2:46 PM