More questions on tax rebates
Today’s article on confusion over the tax rebates generated more questions.
Here are answers from Jim Dupree, the IRS spokesman in Baltimore:
Q. If an individual dies, what happens to his or her direct deposit or stimulus check?
A. Stimulus payments will be issued in the name of the individual eligible for payment on a filed 2007 income tax return or to the account designated by the individual on that return. Any issues or concerns involving a decedent's filed return or the related stimulus payment should be addressed by the legal representative of the decedent's estate.
Q. My spouse and I have divorced and the stimulus payment check is made out to both of us.
Can I cash it? A. If the check is made payable to both of you, then both must endorse the check. Even if you and your spouse are now divorced, both must sign the check. By law, each spouse is considered to receive half of the payment in cases where a joint 2007 return was filed. If the filers chose to have their tax refund direct deposited, the stimulus payment will be direct deposited into the same account that received the tax refund.
Q. My mother gets Social Security and does not file return. Will she get rebate? And what about people who get pension benefits?
A. You must have at least $3,000 in income to be eligible for a rebate. Social Security retirement benefits are counted toward that. If your mother doesn’t file a return, though, she will not receive a rebate.
Dupree noted other types of income and individuals who are not eligible:
Individuals who file Form 1040NR, 1040PR or 1040SS are not eligible for the stimulus payments. These returns are normally filed by Nonresident Aliens, residents of Puerto Rico and residents of the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI). Residents of U.S. possessions will be receiving their rebates directly from the possessions.
Also ineligible are individuals who can be claimed as dependents on someone else’s return. Dividends, interest and capital gains income is not included when determining qualifying income. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.
Also not included in qualifying income are non-veterans or non-Social Security pension income (such as those from Individual Retirement Accounts).
Stimulus payments will be subject to offset against outstanding tax and non-tax liabilities in the same fashion as regular tax refunds. In addition, the IRS emphasizes the stimulus payments will not count toward or negatively impact any other income-based government benefits, such as Social Security benefits, food stamps and other programs.
Comments
If you file an injured spouse claim can or will they hold your money? If so is there anything that can be done about it? espsecially if only one spouse worked?
Posted by: Amanda Brown | February 26, 2008 3:56 PM
According to Jackson Hewitt website the injured spouse will cause rebate for both parties including children to be split 50/50 and injured spouse gets 1/2 and other 1/2 goes to pay debt
Posted by: Barbara | March 8, 2008 11:23 AM
My husband supposedly owes back child support so his federal refund is intercepted to pay the debt. I did not work in 2007. I have a child who does not belong to my husband, plus we have 2 children together. Is there any way to save my portion of the stimulus rebate since I had no income?
Posted by: Emily | March 26, 2008 10:52 PM
Emily, here's the answer from IRS spokesman Jim Dupree:
In this situation, you are considered an injured spouse. To get your share of a joint income-tax refund, as well as your share of the stimulus payment, you can file Form 8379, Injured Spouse Allocation. You will get your share of these payments, and your spouse’s share will be applied to his or her past-due federal or state income taxes or non-tax federal debt such as student loans and child support. Your allocation request will be processed more quickly if you attach Form 8379 to your regular 2007 federal income tax return.
Posted by: eileen ambrose | March 27, 2008 9:58 AM
My husband passed away in Februry 2008. How does this affect our rebate. We filed jointly, and had the refund automatically depositied into our checking account. If the check in in my husbands name and my name, will the bank accept it, or will a check have to be issued in my name - will I receive my husbands share too, or not?
Thank you.
Posted by: ROrtiz | April 7, 2008 2:32 PM
ROrtiz, You should receive a check for the both of you. Since you already had your refund directly deposited into your checking account, the tax rebate check will go there, too. There is no need to sign it.
Posted by: eileen ambrose | April 7, 2008 3:42 PM
My wife and i filed injured spouse. I owe back child support. We have one child together when i checked it said we would get $600 back does this seem right?
Sorry, I don't know what you checked that said you would get $600 back. Can you explain? The IRS has said that the tax rebate would be applied to those who owed back child support. Anyway, the checks are going out now and you'll find out soon.
Posted by: Jay | April 28, 2008 3:54 PM
My spouse and I filed for injured spouse which of course caused a delay in the processing of our 2007 refund. Will the injured spouse form also cause a delay in receiving the stimulus payment?
Posted by: Jody | April 28, 2008 5:01 PM
Jody, Here's your answer from the IRS:
"It might. Processing times for tax returns and stimulus payments vary. It will generally take a minimum of six weeks after you file your return to get your stimulus payment."
Posted by: eileen ambrose | April 29, 2008 9:53 AM
I heard that if you owe back utilites for i.e water, gas you are not eligible for a stimulus check is that true or not.
I haven't heard anything about utilities. But if you owe back child support, alimony or taxes, your rebate will be applied to those items.
Posted by: persephone Mims | May 1, 2008 9:44 PM
I have a sallie mae student loan that is past due. Will they take the stimulus check to pay that off?
K, It depends how "past due" your loan is. If you are a month behind, no. But if you are officially default, meaning you haven't paid anything on the loan for nearly a year, then,yes, the government could grab the rebate.
Posted by: k | May 5, 2008 9:53 PM
Annabelle asked this question:
"i made 9,646.00 on employment benefits, it was tax 10%..I have one qualifying child do I qualify for the tax rebate?"
Sorry, unemployment benefits don't count toward the $3,000 of income needed to qualify for the rebate. Unless you have other income, you will not get the rebate for your child.
Posted by: eileen ambrose | May 6, 2008 9:13 AM
I filed injured spouse, my husband and I are seperated and he owes back taxes, do you know if the stimulus rebate check be made out in both of our names?
This according to IRS Jim Dupree: If you filed the form 8379 as an injured spouse, your husband's rebate should go toward paying his outstanding taxes, and you should get a check under your name for your rebate. - Eileen Ambrose
Posted by: Jackie | May 13, 2008 9:10 AM
I have had the only income in our family and my rebate checked was held due to a child support liability. When I filed the injured spouse, the claim ended with that I would only receive half of the rebate due to my husbands SS# being on the claim despite the fact that I was only given $300 for him. Why is it that the IRS is allowed to take more than his portion for his debt, considering he had no income?
Posted by: Emily | September 28, 2008 2:16 PM