Many taxpayers viewed last year’s tax rebate as a “free lunch,” meaning there had to be a catch.

These taxpayers were sure that they would be taxed on the money from the economic stimulus check, despite repeated declarations by the IRS to the contrary.

Well, it’s worth repeating, since we’re still getting asked about this: Money you got from the tax rebate is NOT taxable.

The 2008 returns, though, include a “recovery rebate credit” if you didn’t qualify for the rebate last year, but now you do.

The stimulus payment was an advance of a 2008 tax credit, but the IRS used your 2007 tax return information to determine whether you qualified. If your situation changed in 2008, you may now be eligible for the tax credit.

For instance, maybe you didn’t qualify last year because you were listed as a dependent on your parents’ 2007 tax return. Dependents didn’t get rebates. But if you were no longer a dependent in 2008, you could be eligible for the credit this year.

Again, the line on the tax form is to allow you to claim a rebate you didn’t get or to claim a larger one than you received last year. It is not a line designed to tax last year’s rebate.

Posted by Eileen Ambrose at 6:02 AM | Permalink | Comments (0)
Categories: Tax rebates
        

The early results are in: About 15 percent of taxpayers trying to claim last year’s tax rebate on their returns have made mistakes.

According to the IRS, some people are claiming the rebate when they don’t deserve it. Others claim the wrong amount. And some erroneously put the amount they received last year on the “recovery rebate credit line.”

Mistakes can delay refunds.

Last year’s economic stimulus check was a 2008 tax credit. But to get money as fast possible into the hands of consumers, the checks were sent out based on information on 2007 returns. Rebates for individuals ranged from $300 to $600, and married joint filers got double that amount. Plus, parents with younger children could receive $300 for each child.

Your 2007 information, though, may have made you ineligible for a rebate or you might have gotten less than the maximum amount. And if your situation changed in 2008, you might be able to claim the rebate on this season’s tax return.

You will need to know how much of a rebate, if any, that you got last year to figure out how much to claim now.

If you forgot, check the notice the IRS mailed to you last year. Or, go to the IRS Web site and check out How Much Was My Stimulus Payment. Or, call the IRS at 866-234-2942.

Computer software will automatically figure and report the amount of your rebate recovery credit.

If you’re the old-fashioned type and filing a paper return, use the work sheet in the 1040 instruction booklet to figure your credit. Then report the number on Line 70 of the Form 1040; Line 42 on Form 1040A and Line 9 of the 1040 EZ form.

You can also enter zero on the line and let the IRS figure out your rebate credit.

One other important point: Remember, last year's stimulus check does NOT have to be reported as income on your tax return.  

Posted by Eileen Ambrose at 6:07 AM | Permalink | Comments (0)
Categories: Tax rebates
        

Didn’t get an economic stimulus check last year? Or, maybe your rebate check was smaller than the maximum amount?

If so, you may be eligible for rebate recovery.

The Internal Revenue Services announced today that taxpayers will be able to recover a rebate if they are now eligible for the money, but weren’t before.

The maximum amount is $600 for individuals; $1,200 for couples. Plus, parents can receive up to $300 per qualified child.

The stimulus payments were based on financial information that appeared on 2007 returns, although technically it was a 2008 credit. So, if your financial situation changed last year, you might be eligible for the rebate if before you didn’t qualify.

For instance, if you had a child in 2008, you could get an extra $300. Or, if your income in 2007 was too high to qualify for the rebate, you might be eligible now if your earnings fell last year. Also, if you were ineligible because you were a dependent, but no longer, you can qualify for the rebate.

To recover the rebate, you will need to file a 2008 form 1040, 1040A or 1040EZ.

You can calculate the “recovery rebate credit” yourself using the instruction work sheet that comes with the forms. The IRS also  will offer an online calculator to figure out if you’re eligible for the money and how much. It's not up yet, but the IRS is offering other information online.

Or, you can have the IRS do it by following the instructions under “Credit Figured by IRS.” Tax software programs will automatically calculate the credit.

If you received a partial rebate lat year, you will need to include that amount.

Posted by Eileen Ambrose at 1:04 PM | Permalink | Comments (0)
Categories: Tax rebates
        

Remember yesterday when Eileen told you that if you're missing your stimulus check, it could be that the Internal Revenue Service has the wrong address for you?

Eileen says "the IRS is holding more than 4,200 stimulus checks and more than 1,500 tax refunds belonging to Marylanders. The U.S. Postal Service was unable to deliver them because of an incorrect address and returned the checks to the IRS."

All told, that’s more than $4 million waiting to be claimed. If you think you might be among the missing checks, click this handy-dandy link that our tech whizzes whipped up to help you find out if you're on the list of Marylanders owed a refund or stimulus check.

Also, Eileen warns that you need to update your address with the IRS by Nov. 28 to get your check this year.

Continue reading "Are You Owed an IRS Stimulus Check? Find Out Here." »

Posted by Dan Thanh Dang at 2:15 PM | Permalink | Comments (0)
Categories: Tax rebates
        

On a day when I usually tell you about naughty companies, naughty people or naughty business practices, I thought it might be kind of nice to share a nice story for a change.

In these tough economic times as businesses are tightening the belt and cutting costs, Frederick-based, family-run business Metropolitan Steel delivered a private stimulus package earlier this month to its 50 steel workers and their families.

Employees were worried that there would be news of pay cuts, layoffs or shutdowns announced at a recent financial meeting held by company executives, but instead, CEO and President Rick Hill handed them $600 checks. (That's a photo of Hill there to the right.)

Continue reading "Local Company Delivers Own Stimulus Check to Employees" »

Posted by Dan Thanh Dang at 1:06 PM | Permalink | Comments (2)
Categories: Above and Beyond, Economy, Tax rebates
        

Democrats in Congress are talking about passing another stimulus package shortly after the election.

The details are still sketchy. But the cost is expected to range from $150 billion to $300 billion.

The money could go to transportation projects, infrastructure, housing, job creation, unemployment insurance, tax cuts and health care for children and seniors. And, yes, more tax rebates.

What do you think? Do we need another stimulus package? And if so, where do you think the money should be spent to do the most good for the econony? Infrastructure? Home loan relief? Tax rebate?

Continue reading "More stimulus checks?" »

Posted by Eileen Ambrose at 11:30 AM | Permalink | Comments (6)
Categories: Tax rebates
        

If you and your spouse didn't get your IRS stimulus check earlier this year, here's some news: it might be in the mail by the end of the month. 

The IRS doled out the tax rebates earlier this year -- up to $600 for eligible singles and up to $1,200 for married couples. But there were many instances where a married woman's name on her tax return didn't match Social Security records, leading the IRS to "inadvertently" omit thousands of married couples from their list of those eligible for the rebate checks, according to its Website. (Our very own Eileen Ambrose covered the problem here at Consuming Interests last month.)

But it looks like the IRS was able to go back and reconcile the records. The government bean counters finally determined that another 260,000 people were eligible to receive the checks. Are you still waiting for yours? Have you pulled your hair out trying to reconcile this with the Feds?

Continue reading "Still Waiting For Your IRS Stimulus Check?" »

Posted by Gus Sentementes at 8:45 AM | Permalink | Comments (7)
Categories: Tax rebates
        

Time is running out.

You have until Oct. 15 to file a 2007 tax return if you want to get a tax rebate this year. Miss the deadline, and you will still be able to claim the tax rebate - on NEXT year's return 

More than 74,000 Maryland retirees and disabled veterans — including about 16,200 in Baltimore — have yet to file, according to the latest figures from the IRS. Many of these taxpayers usually don’t have to file a return because of low-income and may not be aware that they need to file a return to collect a check.

The rebate is worth at least $300 per person for those with qualifying income.

The IRS and other groups are offering free tax preparation for retirees and disabled veterans. Check out the IRS locations online or call 800-829-1040. Those with incomes under $54,000 can file for free online using Free File on the IRS Web site.

Or, call First Call for Help at 800-492-0618 to find free tax help or seek assistance through AARP’s Tax-Aide program at 888-687-2277 or at the AARP Web site.

Posted by Eileen Ambrose at 9:30 AM | Permalink | Comments (0)
Categories: Tax rebates
        

I wrote a few weeks ago about some married women whose families had trouble getting the tax rebate.

It turns out, the women never notified Social Security that they changed their maiden name. When the IRS checked the names on the tax return with Social Security records — something required by Congress to prevent fraudsters wrongfully claiming the tax rebate — the names didn’t match. As a result, the families didn’t get their tax rebate.

Reader Paul Cordts sent along this advice he got from an AARP tax adviser. It runs counter to what the IRS told me, which is that it’s too late to change your name with Social Security and amend your return this year. You need to wait and claim the rebate on next year’s return.

But I include it because the AARP says its experience on the issues is different — although the group adds it doesn’t guarantee the accuracy.

Here’s the AARP response to Paul:

"Dear Paul,

We received the follow question from you:

My wife and I have been married for 10 years. In that period we have had to pay tax at filing time and we have received refunds from the government. There has never been an issue with the IRS accepting my payment or sending me/us a refund. We did not receive a stimulus payment so I called the IRS. They told me that since my wife had not changed her name with the Social Security Administration, that we would not get the payment....The IRS agent also told us that if we went to

Continue reading "AARP weighs in on tax rebate confusion" »

Posted by Eileen Ambrose at 10:00 AM | Permalink | Comments (0)
Categories: Tax rebates
        

Haven’t gotten your economic stimulus payment?

If you haven’t filed your 2007 tax return — a requirement to get the tax rebate — you have just a little over one month to get it in.

Thousands of Marylanders who normally don’t have to file a return because of their low income are likely those missing out on the rebate worth at least $300.

There are plenty of groups offering free tax help if you need assistance filing a return, including AARP Tax-Aide counselors. To make an appointment, call 888-687-2277 or check the group’s Web site to find the nearest location to you.

Susan Dolinka, working with the group, adds in an e-mail: “If a senior citizen only had 2007 Social Security income to declare, they never need to leave their homes. We will e-file and their check will be sent directly to them.”

The deadline is Oct. 15. Don’t miss it! Otherwise, you will have to wait until next year to claim the payment on your return.

Posted by Eileen Ambrose at 3:59 PM | Permalink | Comments (0)
Categories: Tax rebates
        

The mass distribution of economic stimulus checks ended July 11. But Uncle Sam is still sending them out.

The Treasury Department this morning said it had issued another 2.404 million payments worth a total of $1.5 billion since July 11. All told, 114.809 million payments worth $93.389 billion have gone out this year.

You must file a 2007 tax return and have at least $3,000 in qualifying income to get a rebate.

If you haven't filed a return yet, you must do so by Oct. 15. If you miss this deadline, you can claim the rebate on next year's returns, but you won't get the benefit of that money until next year, too.

Posted by Eileen Ambrose at 10:21 AM | Permalink | Comments (0)
Categories: Tax rebates
        

We hear a lot of complaints from readers saying they didn’t get their tax rebate yet.

Sometimes the reason is obvious, like the person owes back taxes.

Sometimes the reason isn’t clear. In those cases, the reader is best off dealing directly with the IRS.

We got an e-mail from the other day from a reader who did just that. The reason the IRS gave her was one we hadn’t heard before, so we had to give the IRS a call.

Our reader, LadyinRed24, says she and her husband had been filing a joint return for seven years, and never had any trouble getting their tax refund. But they didn’t get their tax rebate.

“So my husband called to check and spoke to someone who told him that we were not eligible for it because I still have my maiden name on my Social Security card,” she writes. “And also why can't my husband and my two kids(ages 5 & 1) still be eligible?”

To prevent fraud - and in this case  prevent from someone getting a rebate they don’t deserve - the IRS matches the name on returns with Social Security records. If they don’t match, the return is flagged as being suspicious, according to the IRS.

That appears to be case with LadyinRed. And her husband’s rebate is also affected because it appears he filed a joint return with someone using the wrong name.

Usually, couples getting a marriage license are told that the bride will need to notify Social Security if she is going to go by her husband’s name. This allows Social Security to adjust its records so a wife will have the benefits she earns under the correct name.

Now we see that have the incorrect name on file with Social Security has other repercussions.

Posted by Eileen Ambrose at 7:10 AM | Permalink | Comments (1)
Categories: Tax rebates
        

Drumroll please!

Prepare yourself for the latest --- and possibly final! --- tax rebate update from the U.S. Treasury Department.

This week, they sent out the last of the mass distributions of paper checks for the stimulus payments so many have been waiting so long to receive.

How much was sent out? About 7.530 million economic stimulus payments to American households, totaling $5.755 billion.

That brings the grand total, based on 112.405 million payments, to $91.834 billion. 

Sure, the treasury be sending out more checks until everyone who has applied for them (and is eligible) has been paid, probably before Oct. 15. But no more giant mailings. And maybe no more updates!

So don't forget, in your travels ... 

Continue reading "Tax rebate: Week 11 wrap-up" »

Posted by Liz Kay at 1:02 PM | Permalink | Comments (0)
Categories: Tax rebates
        

I'm shocked. Shocked, I tell you, that you guys let me off so easy. Here it is, Monday afternoon and I haven't heard a peep out of anyone about the pitiful fact that I completely and undeniably FAILED you.

How did your fearless Consuming Interests leader fail you, you ask?

I was too busy participating in, and enjoying, the city's smallest and (in my opinion) sweetest Fourth of July parade ever (I can't tell you where or else it won't qualify as the smallest anymore), and forgot to share the Treasury Department's Tax Rebate update last week.

So here it is, that special post you wait for every week...

Continue reading "Tax Rebate: Week 10 Wrap-Up" »

Posted by Dan Thanh Dang at 2:18 PM | Permalink | Comments (0)
Categories: Tax rebates
        

Holy Schmoley, consumers spent their tax rebates after all! While it really should not be a surprise, the tax rebate checks provided a huge boost to after-tax income and helped drive spending sharply higher in May. After-tax income surged 5.7 percent and spending increased 0.8 percent. The personal saving rate surged to 5.0 percent.

That wasn't me talking. That was Economic Commentary from the Wachovia Economic Group. Even the Holy Schmoley part, I swear.

Continue reading "Tax Rebate: Week 9 Wrap-Up" »

Posted by Dan Thanh Dang at 11:27 AM | Permalink | Comments (1)
Categories: Shopping, Tax rebates
        

Hey Maryland. There's at least $29 million out there waiting for you.

According to some startling statistics released by the IRS, about 5.2 million retirees and disabled veterans who are potentially eligible for a tax rebate haven't yet filed a tax return to get their money. Not only that, rebates may be owed to more than 97,000 Marylanders.

Baltimore has more than 21,000 retirees and disabled veterans who still need to file a return before Oct. 15 to get a rebate this year.

If you know of anyone who might fit that description, let them know what they may be missing out on: $300 to $600 for an individual or $600 to $1,200 for a married couple filing jointly.

Read my column in today's newspaper about who qualifies.

Also, if you are a retiree or disabled vet - or are trying to help a retiree or veteran file a return - check out the online tool offered by AARP. You answer 10 questions and the program puts all the  information on the correct line of a 1040 form. All you have to do then is print it out, sign it and mail it in.

Posted by Eileen Ambrose at 11:04 AM | Permalink | Comments (1)
Categories: Tax rebates
        

What would a Friday be like without a Tax Rebate Wrap-Up?

Would the sun seem less bright? Would the birds continue chirping? Would the coming Happy Hours be as happy? Would your life feel less complete?

pshaw

Have no fear. The Treasury is here.

This week, 9.071 million economic stimulus payments made it to American households totaling $6.919 billion. So far, the Treas has sent out 85.174 million total economic stimulus payments totaling $70.782 billion.

Posted by Dan Thanh Dang at 11:40 AM | Permalink | Comments (2)
Categories: Tax rebates
        

Here's the Treasury Department's update on the tax rebates:

This week - Week 7 - Uncle Sam sent out 9.526 million payments worth a total of $7.032 billion.

The total number of payments: 76.526 million payments worth $63.863 billion. (How many gallons of gas is that?)

Direct deposit payments were supposed to be sent out by May 16th. Checks are still going on up until July 11.

But Treasury warns that a "small percentage" of payments will need additional time to process and won't arrive on schedule.

Posted by Eileen Ambrose at 3:52 PM | Permalink | Comments (1)
Categories: Tax rebates
        

Whatever in the world will we do when the U.S. Treasury stops giving us these weekly stimulating stimulus updates? I fear we will all be inconsolable.

There, there.

No need to worry just yet because that dreaded day has not yet come.

This week, the Treas sent out 9.143 million economic stimulus payments to American households totaling $6.789 billion.

The grand total so far? Exactly 66.576 million economic stimulus payments totaling $56.831 billion.

Continue reading "Tax Rebate: Week 6 Wrap-Up" »

Posted by Dan Thanh Dang at 4:04 PM | Permalink | Comments (0)
Categories: Tax rebates
        

What would you do without these weekly tax rebate updates from the Treasury Department? Would your life feel incomplete? Would you not be able to go on? Would you feel a little tear?

I live to please you so here it is:

The Treas sent out 5.757 million economic stimulus payments to American households totaling $4.320 billion this week.

The grand total so far is 57.433 million total economic stimulus payments. That equals $50.041 billion pay-out.

Just so you know, the Treas says this week's numbers represent the near completion of all direct deposits, with the continued mailing of paper checks.

They're still working on completing the mailing of regular tax refund checks, and thus are not at full capacity for printing and mailing stimulus checks. In June, once the regular tax refund mailings are complete, Treasury will print and mail stimulus checks at full capacity and weekly volumes will increase.

PK, I have no idea what this means for you. I still don't know where your rebate is. Don't forget to let me know when you finally get it.

Posted by Dan Thanh Dang at 3:37 PM | Permalink | Comments (4)
Categories: Tax rebates
        

I know you've been dying with anticipation for this. So here goes.

This week the Treasury Department sent out 6.211 million economic stimulus payments to American households totaling $4.927 billion.

The grand total so far is 51.675 million total economic stimulus payments totaling $45.720 billion.

The Treas (I feel like I can call them that given that we've been talking about them so much lately) says this week's numbers represent the near completion of all direct deposits, with the continued mailing of paper checks.

Treasury facilities are still also working on completing the mailing of regular tax refund checks, and thus are not at full capacity for printing and mailing stimulus checks. In June, once the regular tax refund mailings are complete, Treasury will print and mail stimulus checks at full capacity and weekly volumes will increase.

Holler back at us if you've still seen not a cent of your rebate yet. Or if you want to tell us how you've already spent it...er... I mean responsibly saved it.

Have a good holiday weekend you cheeky monkeys!

Posted by Dan Thanh Dang at 3:22 PM | Permalink | Comments (4)
Categories: Tax rebates
        

Here's a question that plenty of parents have about the tax rebates:

 "I was wondering if you knew the answer to my question about eligibility for certain folks. I have a 20 year old son living at home and attending college. He filed a return, but my husband and I claimed him as a dependent on our return. I had assumed that since he is our dependent, we would get $300 for him as part of this stimulus package (I actually kind of told him that if we claimed him as a dependent - which saved us money on our taxes- we would give him the $300 of the stimulus check that was attributable to him).

"Today I got my stimulus check direct deposited ...Anyway they deposited $1500, $1200 for the married couple, and I suppose $300 for my 3 year old son. Nothing for my 20 year old that was also my dependent. Are dependents over 18 not qualified for the stimulus check, even is they otherwise qualify to be classified as a dependent by the IRS?'

The answer: The rebate is for children who were under age 17 as of the end of last year. Dependents over that age don't qualify.

Posted by Eileen Ambrose at 1:51 PM | Permalink | Comments (0)
Categories: Tax rebates
        

So I told you yesterday that I finally got my rebate last week. I had figured it was coming since, according to the last two digits of my Social Security Number, it was supposed to land on Friday.

I can't say that I was 100 percent confident that I was going to see it since I started seeing a few stories about rebate glitches. The Akron Beacon Journal is reporting that "about 1,500 tax rebates nationwide have been deposited into wrong bank accounts, and the IRS is working with the taxpayers and banks on a case-by-case basis. The IRS said to date, nearly 30 million rebates worth more than $27 billion have been issued and the vast majority went directly to the correct bank accounts."

Continue reading "Tax Rebate Glitches" »

Posted by Dan Thanh Dang at 7:17 AM | Permalink | Comments (7)
Categories: Tax rebates
        

Not sure what to spend your tax rebate on? Here's some great ideas from fatwallet.com on deals that will help you stretch your money a little farther:

As the Web site says:

Stretch that tax stimulus check and save on good bargains for the things you really need. Here's a list of super hot deals, special offers and coupon codes that will help you get more for your money . . . so you can have a some extra coinage to put back into your gas tank! This page keeps getting better all the way through June 30th. And with Cash Back on most things you purchase, you can really compound the savings? We call it "fuel for your fire". Enjoy!

You'll find deals on everything from $359 Off Inspiron 1525 Laptop w/ 2GB Memory, 250GB Hard Drive & Choice of 8 Colors - $599 (not combinable w/ all other offers) at Dell Home Systems to 4+ Night Beach Vacation Packages from $556 at Expedia.com.

Check it out if you're looking to pump that rebate check right back into the economy.

Continue reading "Stimulus savings deals" »

Posted by Dan Thanh Dang at 3:51 PM | Permalink | Comments (0)
Categories: Shopping, Tax rebates
        

Another drumroll please....

This week, the Treasury Department sent out 15.575 million economic stimulus payments to American households totaling $13.562 billion.

The grand total so far?

Have you gotten your rebate yet? According to the Q&As we've been running, I'm supposed to get mine today, but I haven't checked my bank account yet.

Let us know if you got yours yet and how you spent or saved it.

Posted by Dan Thanh Dang at 4:45 PM | Permalink | Comments (1)
Categories: Tax rebates, Taxes
        

Those bottles are how I want to spend my stimulus (that I still haven't gotten in my checking account yet). Buying wine to stock up my stash would be a great way to fritter away my tax rebate, but I'll probably end up doing something sensible like pay off my bills.

Or not.

If you wonder whether others out there are pumping their stimulus (that sounds kind of vulgar, doesn't it?) back into the economy or taking a more sensible route, check out howispentmystimulus.com.

Brittany from Baton Rouge, Louisiana says: I will be using some of our check for a round trip plane ticket to Chicago for the New Kids on the Block reunion tour. Thanks to you George, I will be "Hanging Tough"!"

Continue reading "How I Spent My Stimulus" »

Posted by Dan Thanh Dang at 12:15 PM | Permalink | Comments (0)
Categories: Tax rebates
        

Drumroll please.....

This week the Treasury Department sent out 22.180 million economic stimulus payments to American households totaling $20.138 billion.

In week 1, the total number of payments was 7.708 million and total amount was $7.091 billion.

So far, the grand total comes out to 29.888 million total economic stimulus payments totaling $27.230 billion.

Posted by Dan Thanh Dang at 12:42 PM | Permalink | Comments (0)
Categories: Tax rebates
        

At a rally I attended earlier this year about the upcoming tax rebate, U.S. Rep. Elijah Cummings made an off-hand reference to good church people and tithing.

Tithing is the practice of giving to one's religious community, whether one follows a strict interpretation of some teaching or guideline, i.e. 10 percent of one's earnings, or gives a more loosely defined contribution.

It may have gained some bad connotations over the years, but tithing makes sense: if you gain some benefit from your religious group, you should support it financially, even if there's technically no admission fee to enter the doors. After all, someone's got to cover the cost of heat and health insurance.

Here's Beliefnet's breakdown of tithing practices among major religious groups, and the basis for such beliefs (including references to scripture, if applicable).

Beliefnet.com also has a transcript of this ancient 2001 NPR commentary by Steven Waldman asking what Jesus would do with his tax cut ... calling for Americans to donate a portion of that year's tax rebate to good causes --- real compassionate conservativism, in his eyes.

This year's unexpected "economic stimulus" payment is a different animal than your standard refund, however. And what about earned interest? Birthday or other gifts? Should you draw a line?

Continue reading "Tithing and tax rebates" »

Posted by Liz Kay at 7:09 AM | Permalink | Comments (3)
Categories: Budgeting, Odds & Ends, Tax rebates
        

Q. Will the IRS allow me to provide it with direct deposit information, if I didn’t include that information on my original tax return?

A. You cannot correct direct deposit information or request a direct deposit after a return has been filed.

Q. Is there something I can do to prevent my stimulus payment from being automatically deposited into the account that I identified for the direct deposit of my regular refund?

A. Generally, if you designated direct deposit on a tax return, the stimulus payment will go to the account number you designated. If the account number is no longer active, the IRS will send you a paper check. This process may take several weeks.

Q. I received my stimulus payment, but it was less than what my friends and neighbors received. Why?

Continue reading "Part 2: Everything you want to know about the tax rebate (almost)" »

Posted by Dan Thanh Dang at 11:15 AM | Permalink | Comments (13)
Categories: Tax rebates
        

Uncle Sam has mailed out tax rebates before. But never has there been so much confusion as this last round of checks.

The IRS started sending checks out last week. By year-end, nearly 130 million rebates will be distributed.

The tax agency says it’s been bombarded by questions. The most common: When will I get my rebate?

The rebate is being sent out based on the last two digits of your Social Security number.

For those who are having their rebate directly deposited in the bank: Your payment went out by May 2 if your Social Security number ends in 00-20; May 9 for 21-75; and May 16 for 76-99.

For those getting a paper check: Your check will be mailed out by May 16 if your Social Security number ends in 00-09; May 23 for 10-18, May 30 for 19-25, June 6 for 26-38, June 13 for 39-51, June 20 for 52-63, June 27 for 64-75, July 4 for 76-87 and July 11 for 88-99.

The rebate might be delayed if your paper return was filed but not processed by April 15, the IRS says. And the agency says it will need more time to calculate the rebate for a small percentage of tax returns.

If that doesn't answer your question, here are some of the IRS answers to frequent questions:

Q. I filed after April 15 and the payment date for my Social Security number has passed. How long will it take for me to get my stimulus payment?

A. It will generally take a minimum of six weeks after you file your return to get your stimulus payment.

Q. I filed my return on time, but I haven’t received my stimulus payment, even

Continue reading "Part 1: Everything you want to know about the tax rebate (almost)" »

Posted by Eileen Ambrose at 7:01 AM | Permalink | Comments (9)
Categories: Tax rebates
        

Some smart savers out there might be a little surprised by the destination of their tax rebates. 

The rebates will be sent out in the same format as any income tax refunds issued this year. So, if you directed that money toward an IRA or other account that levies a penalty if you withdraw the cash before a certain date, your rebate will be headed there as well. If it's tax-deferred, like a traditional IRA or health savings account, you ordinarily would have to pay taxes on that money as well.

But! The IRS is offering a little help for anyone who would rather stimulate the economy by purchasing groceries or appliances instead of funding their retirement, according to this announcement (via Consumerist).

Essentially, if your rebate was mistakenly sent to one of these accounts, you'll be allowed to withdraw money up to the amount you received. 

According to the IRA, eligible accounts include:  

Continue reading "Releasing a trapped tax rebate" »

Posted by Liz Kay at 8:15 AM | Permalink | Comments (0)
Categories: Tax rebates
        

It warms my cold, brittle heart to see our tax dollars at work in such wondrous ways. In a press release sent to us by the U.S. Department of Treasury, the media has been invited to cover two scintillating events. On Thursday:

Treasury Secretary Henry M. Paulson, Jr. will tour a Treasury Department printing facility in Kansas City next Thursday to observe the first mass production printing and packaging of the 2008 stimulus checks.

Continue reading "Tax dollars well spent" »

Posted by Dan Thanh Dang at 12:27 PM | Permalink | Comments (1)
Categories: Tax rebates
        

Every week, the Treasury Department says it will tell us the total number of payments that have been sent to households, and the total amount of payments sent. Payments began April 28th and will continue via direct deposit or paper check through mid-July.

The tally this week.... (drum roll, please)....

Total Number of Payments: 7.708 million Total Amount of Payments: $7.091 billion

Do remember that for a single filer, the minimum payment is generally $300 and the maximum payment is $600. For joint filers, the minimum is generally $600 and the maximum $1,200. There is also an additional $300 payment for each qualifying child.

Continue reading "Tax Rebates: Week One Wrap Up" »

Posted by Dan Thanh Dang at 4:28 PM | Permalink | Comments (3)
Categories: Tax rebates
        

Those long-awaited tax rebates should start landing today for people who chose to have their rebates directly deposited into their bank accounts, according to the AP. Paper checks will start going out on May 9, a week earlier than previously announced.

The earlier start date was announced by President Bush last week to help Americans deal with rising gasoline and food prices. The hope is that consumers will take the money and spend it to boost the economy. That photo is of House Speaker Nancy Pelosi standing next to a large check on Capitol Hill last Friday at an event marking the start of the delivery of the economic stimulus checks.

The Internal Revenue Service says all checks for those who filed tax returns on time are scheduled to be deposited or mailed by July 11.

How are you going to spend your rebate? Will you save it for a rainy day? Use it to buy something for the home? Take a trip somewhere? Or will you be like me? Use it to pay your bills (it's going right to my credit card so I can pay for what I spent on my trip to Spain earlier this month).

(AP Photo)

Posted by Dan Thanh Dang at 2:28 PM | Permalink | Comments (0)
Categories: Tax rebates
        

April 15 is around the corner, and if you don’t file a 2007 return by the deadline, you could miss out in getting the tax rebate this year. (You can always apply for it next year, but why wait?)

The rebate is worth $300 to $600 for individuals and $600 to $1,200 for joint filers. To be eligible, you must have at least $3,000 in income.

Even if you normally don’t file a return, you will need to do so to get the rebate.

Forget how to file? No problem. The IRS in Baltimore will be helping taxpayers file returns on Saturday from 8:30 a.m to 2:30 p.m. Bring your papers to the IRS offices at 31 Hopkins Plaza.

Posted by Eileen Ambrose at 1:55 PM | Permalink | Comments (2)
Categories: Tax rebates
        

The IRS sent out a reminder today that you can find information on the tax rebates in Spanish.

The information is available at Centro de Información Sobre los Pagos de Estímulo Económico.

It includes details for Spanish-speaking retirees, disabled veterans and low-wage workers who usually don’t have to file a return.

You must file a tax return for 2007 to get the tax rebate.

The IRS says its newly translated information includes the Package 1040A-3, an 8-page package of instructions, a sample Form 1040A and a blank Form 1040A. Better yet, it has everything needed to file a return now.

 Also, Free File – Economic Stimulus Payment is now available in Spanish. Just click ‘Español”  on the IRS Web site and go to the main El IRS en Español page.

The rebate is worth $300 to $600 for individuals and $600 to $1,200 for married couples filing jointly. The rebate starts phasing out once adjusted gross income tops $75,000 for singles and $150,000 for couples.

If you have children who were under age 17 last year, you may be entitled to an extra $300 per child. Young adults who can be claimed as a dependent on another’s tax return are not eligible for a tax rebate.

To be eligible for a rebate, you must have at least $3,000 in income to get the rebate. That can include wages from a job, non-taxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement Board.

Posted by Eileen Ambrose at 2:01 PM | Permalink | Comments (0)
Categories: Tax rebates
        

Who qualifies for a tax rebate? When will you get yours? Will the rebate affect needs-based benefit programs?

Get answers to these and any other questions you may have on the tax rebates at a virtual town hall meeting being tonight held by Congressman John Sarbanes. The IRS and AARP will also be on hand to answer questions.

The meeting starts at 7:30 p.m. Call 1-866-447-5149 and, when prompted, enter the PIN number 12965.

Posted by Eileen Ambrose at 5:03 PM | Permalink | Comments (3)
Categories: Tax rebates
        

Deservedly so, men and women serving in combat zones will be eligible for the tax rebate.

The IRS put out a notice today that military personnel serving in combat zones can include non-taxable combat pay on their 2007 or 2008 tax returns if it helps them qualify for the rebate.

Taxpayers need to have at least $3,000 in earned income or certain other benefits to get a refund that ranges from $300 to $1,200, plus $300 for each qualifying child.

To get a rebate, those in combat zones or their spouses need to file a 2007 income tax return by Oct. 15, the IRS says. Or, they can claim the rebate on next year’s tax return.

Are you one of those who normally wouldn’t have to file a 2007 return because you income isn’t taxable? If so, you can file a Form 1040A to get the rebate. You can find the amount of excluded combat pay in Box 12, Code Q of your W-2, the IRS says.

Being in a combat zone, you have more time to file a return. The deadline is 180 days after leaving the combat zone. But if your spouse has power of attorney, he or she can file a 2007 income tax return on your behalf so you get the rebate this year.

Posted by Eileen Ambrose at 5:05 PM | Permalink | Comments (0)
Categories: Tax rebates
        

You understand you have to file a tax return this year to get the economic stimulus rebate --- even if you don't usually file.

You know that this year's tax rebate won't decrease your 2008 refund.

You've heard when your check will arrive in the mail --- or be directly deposited into your bank account.

But, my friends, do you know how much this whole $168 billion economic stimulus package will cost taxpayers to process?

Continue reading "How much will those tax rebates cost?" »

Posted by Liz Kay at 4:46 PM | Permalink | Comments (2)
Categories: Tax rebates
        

The Internal Revenue Service has published two helpful items for people curious about their tax rebates: an online calculator to figure out how much you're going to get, and a schedule for when you should expect your check in the mail, or the direct deposit into your bank account, if you chose that option for your tax return.

You did fill out your tax return, right? Remember, the sooner you turn it in, the sooner you'll get your rebate check.

For more info about the tax rebates, check out Eileen Ambrose's posts on the topic, as well as frequently asked questions at the IRS website. 

Here's the schedule: 

Continue reading "When will you get your tax rebate?" »

Posted by Liz Kay at 12:13 PM | Permalink | Comments (0)
Categories: Tax rebates
        

Confusion and misinformation about the tax rebates continues. The IRS once again is trying to set things straight. It issued a list of myths, and the facts debunking them.

Not only is there confusion, but plenty of anger, too. I’ve gotten some testy e-mails on the rebates. And on Monday morning was greeted with two angry phone messages from a screaming man demanding that I answer his tax questions. He hasn’t returned my calls. My editor also ended up cutting a reader’s call short after the man started swearing at him about the tax rebates.

Calm down, folks.

The rebate is an advance on a one-time tax credit for 2008. To get the money into consumers’ hands ASAP — and boost the economy — the rebate is being distributed this year based on information on 2007 tax returns.

One of the big myths that the IRS is battling is that the rebate will be subject to income tax on next year’s return. It won’t.

No matter how many times I write that, I hear from readers who insist it will be. If the tax rebate is reported on next year’s return, it must be taxable, they insist. Or they say: The IRS wouldn’t ask you to keep a letter about the rebate if it wasn’t going to tax it later.

IRS spokesman Eric Smith says the IRS doesn’t know yet if or how the rebate will be reported on next year’s forms. But keeping the letter will remind you of the size of the rebate you got. If it turns out it’s too little — after all this is based on 2007 returns — you can file for the rest of the credit on the 2008 tax return.

The IRS also maintains that this year’s rebate won’t reduce next year’s refund. What the IRS means is that the rebate won’t reduce any refund you otherwise would get next year, says tax

Continue reading "Myths and Facts on Tax Rebates" »

Posted by Eileen Ambrose at 7:56 AM | Permalink | Comments (0)
Categories: Tax rebates
        

The IRS says its Free File program can now accept tax returns for those who normally aren’t required to file one.

This makes it easy for computer-savvy nonfilers who need to submit a return just to get the tax rebate.

Free File is a partnership between the IRS and tax preparation companies to prepare filers' returns for free. The IRS says it has worked with a few companies so they can handle returns for those only filing to get the tax rebate.

Usually, you don’t have to file a return if your income is too low. But to get the $300 to $1,200 rebates, you need to file a 2007 return.

If that’s you, you can access Free File by going to www.irs.gov. Look for the three companies listed on the Free File – Economic Stimulus Payment page.

Posted by Eileen Ambrose at 2:42 PM | Permalink | Comments (2)
Categories: Tax rebates
        

The IRS tells people to file a 2007 tax return, and the agency will let you know the size of your rebate.

Can’t wait? Of course, you can’t. But you don’t have to.

Some online calculators are up and running to figure your rebate based on your income, filing status and a few other numbers. Try calculators at Consumerism Commentary, Kiplingers or Your Money Page.

Rebates range from $300 to $600 for singles and $600 to $1,200 for married joint filers. Parents with children under age 17 can receive an extra $300 per child.

Rebates begin to disappear once adjusted gross income exceeds $75,000 for singles and $150,000 for married couples.

Calculators, for instance, show that a couple with $156,000 in income and a $10,000 tax liability will receive a $900 rebate. If their income was $173,000 instead, their rebate would be $50.

A married couple with two kids and adjusted gross income of $80,000 will receive $1,800. Or, a single person with $4,500 in Social Security benefits will get a $300 rebate.

Once you get started, it’s hard to stop plugging in all sorts of scenarios.

Posted by Eileen Ambrose at 7:56 AM | Permalink | Comments (0)
Categories: Tax rebates
        

We might be able to write a book on all the questions over the tax rebates.

With the help of IRS spokesman Jim Dupree, here are more answers to your questions:

Q. Do government retirees on the Civil Service Retirement System and Federal Employee Retirement System plans receive rebates as other W-2 wage earners?

A. In general, CSRS and FERS annuity payments are considered taxable income. These retirees will be eligible to receive a payment if they had at least $3,000 of qualifying income in 2007.

Q. My son is 18 year-old college student. He works but makes too little to file a return. We claim him as a dependent on our tax return. Can he get a rebate by filing a return?

A. No, anyone who is claimed as a dependent on someone else’s tax return is ineligible for the rebate.

Q. If you file estimated quarterly taxes, will the rebate be applied to upcoming taxes or will you get a rebate check?

A. The economic stimulus payment amount to which the person is entitled will be issued in full, unless the taxpayer has an outstanding (past-due) federal income tax liability, or, if previously referred to the Treasury Financial Management Service Treasury Offset Program, past-due child or spousal support, past-due student loan obligations, other federal agency non-tax debts, or state income tax obligations.

Posted by Eileen Ambrose at 4:57 PM | Permalink | Comments (2)
Categories: Tax rebates
        

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.

Continue reading "Tax rebate questions keep coming" »

Posted by Eileen Ambrose at 3:45 PM | Permalink | Comments (1)
Categories: Tax rebates, Taxes
        

Questions on tax rebates continue to roll in after yesterday’s column.

Your questions were posed to IRS spokesman Jim Dupree in Baltimore. Here are his answers:

Q. Where do you get 1040A forms?

A. You can call us at 1-800-829-FORMS (3676) and request them. IRS Forms are also available at some Post Offices and public libraries. Lastly, you can stop at your nearest IRS office to get them.

Q. If the rebate is an advance on the reduction in 2008 tax rates, doesn’t that mean that any refund next year ( if I get one) will be reduced by the advance (rebate) this year?

A. You will not owe tax on your stimulus payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. I filed early this year even though I owed money to the IRS. However, this meant that I didn’t show any bank routing information. You answered the question for people filing now, but is there any way that someone like me can arrange for Direct Deposit now?

Continue reading "Yet even more Q&As on tax rebates" »

Posted by Eileen Ambrose at 8:12 AM | Permalink | Comments (4)
Categories: 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?

Continue reading "More questions on tax rebates" »

Posted by Eileen Ambrose at 11:09 AM | Permalink | Comments (14)
Categories: Tax rebates