Another Check is in the Mail!

Over 130 million U.S. taxpayers are expected to receive economic stimulus checks beginning in May 2008. The government's plan is by getting money into the hands of Americans, who will hopefully spend it immediately, that it will reinvigorate the slumping U.S. economy. To qualify, though, taxpayers must file a 2007 tax return in order to be eligible, but after filing this return, the IRS will do the rest.

As part of a broader-based stimulus package, these checks will provide tax relief of UP TO $600 per individual and $1,200 per married couple, plus an additional $300 per child. At the minimum, a taxpayer must have at least $3,000 of "qualifying income" to receive the $300 (single) or $600 (married, filing jointly). Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans' benefits, and earned income. Earned income is income from self-employment, as well as wages, salaries, commissions, and tips earned as an employee.

In general, taxpayers with Federal income tax liability over $300 will receive the lesser of (1.) their tax liability or (2.) $600 for single persons or $1,200 for married couples filing jointly. There are a few limitations and restrictions to be aware of, as single persons with incomes of more than $75,000 and married couples with incomes of more than $150,000 will get only partial rebates.

As always, officials warn all Americans to watch for scams. The IRS will NOT be contacting taxpayers by telephone or e-mail about these tax rebates; however, you may see a letter from the IRS in the mail very soon that will explain simply how to qualify. (It is legitimate, but simply explains how to qualify and does not ask for account numbers, social security numbers, or other personal information.)

Most often, scams focus on trying to attain your checking or savings account numbers, credit card numbers, social security numbers, or other security information, such as PIN numbers or passwords. Don't fall victim to these scams!

If you have questions, you should contact your tax preparer because they best know your personal situation. Given this is an extremely busy time of year for them, however, you may want to wait until after the April 15th tax filing deadline to call their office. The first checks won't be mailed until May, so there's plenty of time.