Jump to content

Announcements



  • veteranscrisisline-badge-chat-1.gif

  • Donation Box

    Please donate to support the community.
    We appreciate all donations!
  • Advertisemnt

  • 14 Questions about VA Disability Compensation Benefits Claims

    questions-001@3x.png

    When a Veteran starts considering whether or not to file a VA Disability Claim, there are a lot of questions that he or she tends to ask. Over the last 10 years, the following are the 14 most common basic questions I am asked about ...
    Continue Reading
     
  • Ads

  • Most Common VA Disabilities Claimed for Compensation:   

    tinnitus-005.pngptsd-005.pnglumbosacral-005.pngscars-005.pnglimitation-flexion-knee-005.pngdiabetes-005.pnglimitation-motion-ankle-005.pngparalysis-005.pngdegenerative-arthitis-spine-005.pngtbi-traumatic-brain-injury-005.png

  • Advertisemnt

  • VA Watchdog

  • Advertisemnt

  • Ads

  • Can a 100 percent Disabled Veteran Work and Earn an Income?

    employment 2.jpeg

    You’ve just been rated 100% disabled by the Veterans Affairs. After the excitement of finally having the rating you deserve wears off, you start asking questions. One of the first questions that you might ask is this: It’s a legitimate question – rare is the Veteran that finds themselves sitting on the couch eating bon-bons … Continue reading

  • 0
Sign in to follow this  
boblandstar

Economic Stimulus Payment Q&as: Eligibility

Question

Updated July 16, 2008

Following are answers to some of the most commonly asked questions regarding the economic stimulus payments. Scroll down for eligibility-related information or choose from one of the following categories:

  1. Eligibility







  2. Direct Deposit



Eligibility

Q. I have not yet filed my 2007 tax return. Can I still qualify for a stimulus payment this year?

A. Yes, but you must file a 2007 tax return. The IRS encourages you to file a return even if your income is low or much of your income is tax-free. If you qualify for a payment, you can ensure that you get it by filing your return by Oct. 15, 2008.

Q. What do I need to do to get an economic stimulus payment?

A. All you need to do is file a federal income tax return for 2007. If you requested an extension to file, you will fill out your return, reporting all your income, deductions and credits as you normally would prior to Oct. 15, 2008. Even if you are not otherwise required to file a tax return, you must file a 2007 return prior to Oct. 15, 2008 in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will.

The IRS has provided special filing instructions for those who do not otherwise have a filing requirement. This includes low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs. The instructions explain which lines on the tax return the filers need to complete.

You do not need to calculate the amount of the stimulus payment. If you want to estimate the amount of your payment, use the Economic Stimulus Payment Calculator.

If you file a return and qualify for a payment, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms.

Q. How do I find out if I am eligible?

A. The easiest way to find out is to use the Economic Stimulus Payment Calculator. Most people with a 2007 net income tax liability qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57, plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.

Families with children under 17, as of Dec. 31, 2007 will qualify for an additional payment. Some people with no tax liability also qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans’ payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.

Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment.

Q: I normally don't need to file a tax return. How do I know if I'm one of those people who may be eligible to receive an economic stimulus payment?

A: This group includes some recipients of Social Security, Railroad Retirement or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.

Q: I normally don't have to file a tax return but have enough in qualifying income to receive a stimulus payment. How do I find out more about how to file a tax return? Is there a special form?

A: The IRS developed a special Form 1040A requiring only a few lines to be completed. If you qualify, all you need to do is fill out Form 1040A where indicated. A sample version of Form 1040A illustrates which lines to fill out. These materials will be included in a special mailout this summer to people who don't normally file. More information is available in Fact Sheet 2008-16.

Q. If I'm filing a tax return this year just to get a stimulus payment, by when do I have to file?

A. The sooner you file the sooner you can receive your stimulus payment. If you have obtained a valid six-month extension to file or if you are filing to establish your eligibility for the stimulus payment, filing by Oct. 15, 2008 means the IRS can process your return and issue a stimulus payment before the end of the year.

Q. I want to estimate my payment. Please explain how it is figured.

A. There are two parts to the stimulus payment: a basic amount based on tax liability, filing status or other qualifying factors if there is no tax liability and an additional amount based on whether a qualifying child is reported on the return.

Basic Amount of Payment: Taxpayers who had a net income tax liability will receive a payment, unless they can be claimed as dependents on someone else’s return, are high-income individuals or do not have a valid Social Security number. The payment is equal to the taxpayer’s net income tax liability but no more than $600 for a single person or $1,200 for a married couple filing a joint return. The minimum payment is $300 for a single person or $600 for a married couple filing jointly.

People with no net income tax liability will usually get a minimum payment of $300 for a single person or $600 for a married couple filing jointly as long as they have qualifying income of at least $3,000. To figure your qualifying income, add together the following amounts:

  • Wages that are reported on Form W-2.
  • Net self-employment income.
  • Social Security benefits reported in box 5 of the 2007 Form 1099-SSA, which would have been received in January 2008. People who do not have a Form 1099-SSA may estimate their annual Social Security benefit by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
  • Certain Railroad Retirement benefits reported in box 5 of the 2007 Form 1099-RRB, which recipients would have received in January 2008.
  • Veterans’ benefits received in 2007, including veterans’ disability compensation and pension or survivors’ benefits received from the Department of Veterans Affairs. People who weren’t required to file a tax return can estimate their annual veterans’ benefits by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
  • Nontaxable combat pay if the taxpayer elects to include it as earned income.


    Phase Out: The stimulus payment –– both the basic component and the additional funds for qualifying children –– begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds.

    Here are two examples of how the phase out works:

    • An individual with AGI of $80,000 and federal income tax liability in excess of $600 would qualify for a basic rebate of $600. Because this individual’s AGI exceeds $75,000, however, her rebate is reduced by $250 (the credit is reduced by multiplying the amount of AGI over $75,000 by 5%). The taxpayer receives an economic stimulus payment of $350.
    • A married couple with two children, AGI of $160,000 and federal income tax liability before the child tax credit exceeding $1,200 qualifies for a basic rebate of $1,200 and an additional qualifying child credit of $600 for a total rebate of $1,800. But because the couple’s AGI exceeds $150,000, their rebate is reduced by $500 (the amount of AGI over $150,000 multiplied by 5%). The couple receives an economic stimulus payment of $1,300.

    Use the Economic Stimulus Payment Calculator to determine your eligibility and estimate the amount of your payment.

    Q. I am filling out the special Form 1040A to report my qualifying income. Which Social Security benefits should I report on Line 14a?

    A. The economic stimulus law refers to the same definition of Social Security and Railroad Retirement benefits used in IRS Publication 915. Thus, Social Security monthly retirement, survivor and disability benefits, or the Tier 1 Railroad Retirement benefits equivalent to those Social Security benefits, all count. This is the amount reported to you by the Social Security Administration as “Net Benefits for 2007” in Box 5 of Form SSA-1099 or by the Railroad Retirement Board in Box 5 of Form RRB-1099. Report this amount on Line 14a, Form 1040A. Determine the amount of your Veterans' benefits by multiplying your monthly benefit by the number of months during 2007 that you received the benefit. Supplemental security income (SSI) payments are not considered Social Security benefits and thus cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099.

    Q. Does my supplemental security income (SSI) qualify as Social Security benefits for the purpose of the Economic Stimulus Payment?

    A. No, supplemental security income (SSI) payments are not considered Social Security benefits and cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099. Only the amount shown in Box 5 of Form SSA-1099 is consider to qualify as Social Security benefits for purposes of the Economic Stimulus Payments.

    Q. Are pension and annuity amounts provided by state, federal or private sector employers considered "qualifying income" in determining eligibility for the economic stimulus payment by those who are not otherwise required to file?

    A. No, these payments are not included in the legal definition of "qualifying income."

    Q. Does rental income qualify as qualifying income?

    A. Rental real estate income is not earned income for purposes of the economic stimulus payment, unless it is net earnings from self-employment, as is certain farm rent or income received in the business as a real estate dealer.

    Q. My child turned 17 in December 2007. Do I still get the extra child payment?

    A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment.

    Q. Will receiving an economic stimulus payment in any way affect my eligibility for other federal benefits, such as temporary assistance for needy families, food stamps or Social Security? Will it count as income for purposes of my Social Security benefits?

    A: No. The stimulus payments do not affect eligibility for federal benefits.

    Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

    A. Stimulus payments are 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. This includes situations where a person has died after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse. 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. See Publication 559 for more useful information for survivors and personal representatives.

    Q: I know some people won’t get a stimulus payment. How do I know if I’m one of them?

    A: You won’t get a stimulus payment in 2008, if any of the following apply to you:

    [*] You don’t file a 2007 tax return.

    [*] Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.

    [*] You can be claimed as a dependent on someone else’s return (whether or not you actually are claimed as a dependent on someone else's return). For example, this would include a child or student who can be claimed on a parent’s return.

    [*] You do not have a valid Social Security Number.

    [*] You are a nonresident alien.

    [*] You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

    Q. I don’t qualify for a stimulus payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?

    A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.

    Page Last Reviewed or Updated: December 12, 2008

Share this post


Link to post
Share on other sites

5 answers to this question

Recommended Posts

what does this have to do with this years stimulus? and why is it in this topic? seems to be dated material.

Share this post


Link to post
Share on other sites

this seems to refer to the previous stimulus payment last year, i haven't seen the specifics for the upcoming stimulus

Updated July 16, 2008

Following are answers to some of the most commonly asked questions regarding the economic stimulus payments. Scroll down for eligibility-related information or choose from one of the following categories:

  1. Eligibility







  2. Direct Deposit



Eligibility

Q. I have not yet filed my 2007 tax return. Can I still qualify for a stimulus payment this year?

A. Yes, but you must file a 2007 tax return. The IRS encourages you to file a return even if your income is low or much of your income is tax-free. If you qualify for a payment, you can ensure that you get it by filing your return by Oct. 15, 2008.

Q. What do I need to do to get an economic stimulus payment?

A. All you need to do is file a federal income tax return for 2007. If you requested an extension to file, you will fill out your return, reporting all your income, deductions and credits as you normally would prior to Oct. 15, 2008. Even if you are not otherwise required to file a tax return, you must file a 2007 return prior to Oct. 15, 2008 in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will.

The IRS has provided special filing instructions for those who do not otherwise have a filing requirement. This includes low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs. The instructions explain which lines on the tax return the filers need to complete.

You do not need to calculate the amount of the stimulus payment. If you want to estimate the amount of your payment, use the Economic Stimulus Payment Calculator.

If you file a return and qualify for a payment, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms.

Q. How do I find out if I am eligible?

A. The easiest way to find out is to use the Economic Stimulus Payment Calculator. Most people with a 2007 net income tax liability qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57, plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.

Families with children under 17, as of Dec. 31, 2007 will qualify for an additional payment. Some people with no tax liability also qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans' payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.

Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment.

Q: I normally don't need to file a tax return. How do I know if I'm one of those people who may be eligible to receive an economic stimulus payment?

A: This group includes some recipients of Social Security, Railroad Retirement or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans' disability compensation, pension or survivors' benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans' benefits and earned income, such as income from wages, salaries, tips and self-employment. For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.

Q: I normally don't have to file a tax return but have enough in qualifying income to receive a stimulus payment. How do I find out more about how to file a tax return? Is there a special form?

A: The IRS developed a special Form 1040A requiring only a few lines to be completed. If you qualify, all you need to do is fill out Form 1040A where indicated. A sample version of Form 1040A illustrates which lines to fill out. These materials will be included in a special mailout this summer to people who don't normally file. More information is available in Fact Sheet 2008-16.

Q. If I'm filing a tax return this year just to get a stimulus payment, by when do I have to file?

A. The sooner you file the sooner you can receive your stimulus payment. If you have obtained a valid six-month extension to file or if you are filing to establish your eligibility for the stimulus payment, filing by Oct. 15, 2008 means the IRS can process your return and issue a stimulus payment before the end of the year.

Q. I want to estimate my payment. Please explain how it is figured.

A. There are two parts to the stimulus payment: a basic amount based on tax liability, filing status or other qualifying factors if there is no tax liability and an additional amount based on whether a qualifying child is reported on the return.

Basic Amount of Payment: Taxpayers who had a net income tax liability will receive a payment, unless they can be claimed as dependents on someone else's return, are high-income individuals or do not have a valid Social Security number. The payment is equal to the taxpayer's net income tax liability but no more than $600 for a single person or $1,200 for a married couple filing a joint return. The minimum payment is $300 for a single person or $600 for a married couple filing jointly.

People with no net income tax liability will usually get a minimum payment of $300 for a single person or $600 for a married couple filing jointly as long as they have qualifying income of at least $3,000. To figure your qualifying income, add together the following amounts:

  • Wages that are reported on Form W-2.
  • Net self-employment income.
  • Social Security benefits reported in box 5 of the 2007 Form 1099-SSA, which would have been received in January 2008. People who do not have a Form 1099-SSA may estimate their annual Social Security benefit by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
  • Certain Railroad Retirement benefits reported in box 5 of the 2007 Form 1099-RRB, which recipients would have received in January 2008.
  • Veterans' benefits received in 2007, including veterans' disability compensation and pension or survivors' benefits received from the Department of Veterans Affairs. People who weren't required to file a tax return can estimate their annual veterans' benefits by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
  • Nontaxable combat pay if the taxpayer elects to include it as earned income.


    Phase Out: The stimulus payment –– both the basic component and the additional funds for qualifying children –– begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds.

    Here are two examples of how the phase out works:

    • An individual with AGI of $80,000 and federal income tax liability in excess of $600 would qualify for a basic rebate of $600. Because this individual's AGI exceeds $75,000, however, her rebate is reduced by $250 (the credit is reduced by multiplying the amount of AGI over $75,000 by 5%). The taxpayer receives an economic stimulus payment of $350.
    • A married couple with two children, AGI of $160,000 and federal income tax liability before the child tax credit exceeding $1,200 qualifies for a basic rebate of $1,200 and an additional qualifying child credit of $600 for a total rebate of $1,800. But because the couple's AGI exceeds $150,000, their rebate is reduced by $500 (the amount of AGI over $150,000 multiplied by 5%). The couple receives an economic stimulus payment of $1,300.

    Use the Economic Stimulus Payment Calculator to determine your eligibility and estimate the amount of your payment.

    Q. I am filling out the special Form 1040A to report my qualifying income. Which Social Security benefits should I report on Line 14a?

    A. The economic stimulus law refers to the same definition of Social Security and Railroad Retirement benefits used in IRS Publication 915. Thus, Social Security monthly retirement, survivor and disability benefits, or the Tier 1 Railroad Retirement benefits equivalent to those Social Security benefits, all count. This is the amount reported to you by the Social Security Administration as "Net Benefits for 2007" in Box 5 of Form SSA-1099 or by the Railroad Retirement Board in Box 5 of Form RRB-1099. Report this amount on Line 14a, Form 1040A. Determine the amount of your Veterans' benefits by multiplying your monthly benefit by the number of months during 2007 that you received the benefit. Supplemental security income (SSI) payments are not considered Social Security benefits and thus cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099.

    Q. Does my supplemental security income (SSI) qualify as Social Security benefits for the purpose of the Economic Stimulus Payment?

    A. No, supplemental security income (SSI) payments are not considered Social Security benefits and cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099. Only the amount shown in Box 5 of Form SSA-1099 is consider to qualify as Social Security benefits for purposes of the Economic Stimulus Payments.

    Q. Are pension and annuity amounts provided by state, federal or private sector employers considered "qualifying income" in determining eligibility for the economic stimulus payment by those who are not otherwise required to file?

    A. No, these payments are not included in the legal definition of "qualifying income."

    Q. Does rental income qualify as qualifying income?

    A. Rental real estate income is not earned income for purposes of the economic stimulus payment, unless it is net earnings from self-employment, as is certain farm rent or income received in the business as a real estate dealer.

    Q. My child turned 17 in December 2007. Do I still get the extra child payment?

    A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment.

    Q. Will receiving an economic stimulus payment in any way affect my eligibility for other federal benefits, such as temporary assistance for needy families, food stamps or Social Security? Will it count as income for purposes of my Social Security benefits?

    A: No. The stimulus payments do not affect eligibility for federal benefits.

    Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

    A. Stimulus payments are 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. This includes situations where a person has died after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse. 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. See Publication 559 for more useful information for survivors and personal representatives.

    Q: I know some people won't get a stimulus payment. How do I know if I'm one of them?

    A: You won't get a stimulus payment in 2008, if any of the following apply to you:

      [*] You don't file a 2007 tax return.

      [*] Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans' payments.

      [*] You can be claimed as a dependent on someone else's return (whether or not you actually are claimed as a dependent on someone else's return). For example, this would include a child or student who can be claimed on a parent's return.

      [*] You do not have a valid Social Security Number.

      [*] You are a nonresident alien.

      [*] You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

      Q. I don't qualify for a stimulus payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?

      A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.

      Page Last Reviewed or Updated: December 12, 2008

Share this post


Link to post
Share on other sites

I am confused is this last years stimulus its date as reviewed Dec 12, 2008.

I am going to file mine again even though I don't have to as I got 600 last year.

Share this post


Link to post
Share on other sites

Too late to go back to retro for last years payment(was 600 plus 600 spouse plus 300 each child). Needed to be filed last year.

This years is being shot down...so the 250 the disabled vet was to get is no more. The senate decreased the vets budget by a few billion and this is not coming about. It was in the news. Also one senator said money is allocated for stupid things and not for people, it was in the news last week!

Updated July 16, 2008

Following are answers to some of the most commonly asked questions regarding the economic stimulus payments. Scroll down for eligibility-related information or choose from one of the following categories:

  1. Eligibility







  2. Direct Deposit



Eligibility

</a>

Q. I have not yet filed my 2007 tax return. Can I still qualify for a stimulus payment this year?

A. Yes, but you must file a 2007 tax return. The IRS encourages you to file a return even if your income is low or much of your income is tax-free. If you qualify for a payment, you can ensure that you get it by filing your return by Oct. 15, 2008.

Q. What do I need to do to get an economic stimulus payment?

A. All you need to do is file a federal income tax return for 2007. If you requested an extension to file, you will fill out your return, reporting all your income, deductions and credits as you normally would prior to Oct. 15, 2008. Even if you are not otherwise required to file a tax return, you must file a 2007 return prior to Oct. 15, 2008 in order to receive a payment this year. Although some filers, such as high-income filers, will not qualify for a stimulus payment, most will.

The IRS has provided special filing instructions for those who do not otherwise have a filing requirement. This includes low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs. The instructions explain which lines on the tax return the filers need to complete.

You do not need to calculate the amount of the stimulus payment. If you want to estimate the amount of your payment, use the Economic Stimulus Payment Calculator.

If you file a return and qualify for a payment, the IRS will automatically figure it and send it to you. The IRS will also send you a notice showing the amount of your payment. You do not need to call the IRS or fill out any other special forms.

Q. How do I find out if I am eligible?

A. The easiest way to find out is to use the Economic Stimulus Payment Calculator. Most people with a 2007 net income tax liability qualify. This includes most people who get tax refunds. Net income tax liability is the amount shown on Form 1040, Line 57, plus the amount on Line 52. For 1040A filers, it is the amount on Line 35 plus the amount on Line 32. For Form 1040EZ filers, it is the amount on Line 10.

Families with children under 17, as of Dec. 31, 2007 will qualify for an additional payment. Some people with no tax liability also qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans’ payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.

Some higher-income taxpayers will not receive a stimulus payment or will receive a reduced payment.

Q: I normally don't need to file a tax return. How do I know if I'm one of those people who may be eligible to receive an economic stimulus payment?

A: This group includes some recipients of Social Security, Railroad Retirement or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.

Q: I normally don't have to file a tax return but have enough in qualifying income to receive a stimulus payment. How do I find out more about how to file a tax return? Is there a special form?

A: The IRS developed a special Form 1040A requiring only a few lines to be completed. If you qualify, all you need to do is fill out Form 1040A where indicated. A sample version of Form 1040A illustrates which lines to fill out. These materials will be included in a special mailout this summer to people who don't normally file. More information is available in <a href="http://www.irs.gov/irs/article/0,,id=179096,00.html" target="_blank">Fact Sheet 2008-16.

Q. If I'm filing a tax return this year just to get a stimulus payment, by when do I have to file?

A. The sooner you file the sooner you can receive your stimulus payment. If you have obtained a valid six-month extension to file or if you are filing to establish your eligibility for the stimulus payment, filing by Oct. 15, 2008 means the IRS can process your return and issue a stimulus payment before the end of the year.

Q. I want to estimate my payment. Please explain how it is figured.

A. There are two parts to the stimulus payment: a basic amount based on tax liability, filing status or other qualifying factors if there is no tax liability and an additional amount based on whether a qualifying child is reported on the return.

Basic Amount of Payment: Taxpayers who had a net income tax liability will receive a payment, unless they can be claimed as dependents on someone else’s return, are high-income individuals or do not have a valid Social Security number. The payment is equal to the taxpayer’s net income tax liability but no more than $600 for a single person or $1,200 for a married couple filing a joint return. The minimum payment is $300 for a single person or $600 for a married couple filing jointly.

People with no net income tax liability will usually get a minimum payment of $300 for a single person or $600 for a married couple filing jointly as long as they have qualifying income of at least $3,000. To figure your qualifying income, add together the following amounts:

  • Wages that are reported on Form W-2.
  • Net self-employment income.
  • Social Security benefits reported in box 5 of the 2007 Form 1099-SSA, which would have been received in January 2008. People who do not have a Form 1099-SSA may estimate their annual Social Security benefit by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
  • Certain Railroad Retirement benefits reported in box 5 of the 2007 Form 1099-RRB, which recipients would have received in January 2008.
  • Veterans’ benefits received in 2007, including veterans’ disability compensation and pension or survivors’ benefits received from the Department of Veterans Affairs. People who weren’t required to file a tax return can estimate their annual veterans’ benefits by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit.
  • Nontaxable combat pay if the taxpayer elects to include it as earned income.


    Phase Out: The stimulus payment –– both the basic component and the additional funds for qualifying children –– begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds.

    Here are two examples of how the phase out works:

    • An individual with AGI of $80,000 and federal income tax liability in excess of $600 would qualify for a basic rebate of $600. Because this individual’s AGI exceeds $75,000, however, her rebate is reduced by $250 (the credit is reduced by multiplying the amount of AGI over $75,000 by 5%). The taxpayer receives an economic stimulus payment of $350.
    • A married couple with two children, AGI of $160,000 and federal income tax liability before the child tax credit exceeding $1,200 qualifies for a basic rebate of $1,200 and an additional qualifying child credit of $600 for a total rebate of $1,800. But because the couple’s AGI exceeds $150,000, their rebate is reduced by $500 (the amount of AGI over $150,000 multiplied by 5%). The couple receives an economic stimulus payment of $1,300.

    Use the Economic Stimulus Payment Calculator to determine your eligibility and estimate the amount of your payment.

    Q. I am filling out the special Form 1040A to report my qualifying income. Which Social Security benefits should I report on Line 14a?

    A. The economic stimulus law refers to the same definition of Social Security and Railroad Retirement benefits used in IRS Publication 915. Thus, Social Security monthly retirement, survivor and disability benefits, or the Tier 1 Railroad Retirement benefits equivalent to those Social Security benefits, all count. This is the amount reported to you by the Social Security Administration as “Net Benefits for 2007” in Box 5 of Form SSA-1099 or by the Railroad Retirement Board in Box 5 of Form RRB-1099. Report this amount on Line 14a, Form 1040A. Determine the amount of your Veterans' benefits by multiplying your monthly benefit by the number of months during 2007 that you received the benefit. Supplemental security income (SSI) payments are not considered Social Security benefits and thus cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099.

    Q. Does my supplemental security income (SSI) qualify as Social Security benefits for the purpose of the Economic Stimulus Payment?

    A. No, supplemental security income (SSI) payments are not considered Social Security benefits and cannot be included. Because SSI is not taxable, it is not reported to you on Form SSA-1099. Only the amount shown in Box 5 of Form SSA-1099 is consider to qualify as Social Security benefits for purposes of the Economic Stimulus Payments.

    Q. Are pension and annuity amounts provided by state, federal or private sector employers considered "qualifying income" in determining eligibility for the economic stimulus payment by those who are not otherwise required to file?

    A. No, these payments are not included in the legal definition of "qualifying income."

    Q. Does rental income qualify as qualifying income?

    A. Rental real estate income is not earned income for purposes of the economic stimulus payment, unless it is net earnings from self-employment, as is certain farm rent or income received in the business as a real estate dealer.

    Q. My child turned 17 in December 2007. Do I still get the extra child payment?

    A. Not in this case. Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. But to qualify, a child must be under age 17 as of Dec. 31, 2007. In other words, if a child was 16 or younger at the end of 2007 and meets the other eligibility requirements, then the child will qualify for the $300 stimulus payment.

    Q. Will receiving an economic stimulus payment in any way affect my eligibility for other federal benefits, such as temporary assistance for needy families, food stamps or Social Security? Will it count as income for purposes of my Social Security benefits?

    A: No. The stimulus payments do not affect eligibility for federal benefits.

    Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

    A. Stimulus payments are 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. This includes situations where a person has died after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse. 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. See Publication 559 for more useful information for survivors and personal representatives.

    Q: I know some people won’t get a stimulus payment. How do I know if I’m one of them?

    A: You won’t get a stimulus payment in 2008, if any of the following apply to you:

    [*] You don’t file a 2007 tax return.

    [*] Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.

    [*] You can be claimed as a dependent on someone else’s return (whether or not you actually are claimed as a dependent on someone else's return). For example, this would include a child or student who can be claimed on a parent’s return.

    [*] You do not have a valid Social Security Number.

    [*] You are a nonresident alien.

    [*] You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

    Q. I don’t qualify for a stimulus payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?

    A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.

    Page Last Reviewed or Updated: December 12, 2008

Share this post


Link to post
Share on other sites

This year's $250 for vets, and SSI recipients is still in there. It isn't tied to the VA or military money.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Ads

  • Our picks

    • I told reviewer that I had a bad C&P, and that all I wanted was a fair shake, and she even said, that was what she was all ready viewed for herself. The first C&P don't even  reflect my Treatment in the VA PTSD clinic. In my new C&P I was only asked about symptoms, seeing shit, rituals, nightmares, paying bills and about childhood, but didn't ask about details of it. Just about twenty question, and  nothing about stressor,
    • This is the latest Compensation & Pension (C&P) Clinicians Guide dated 20180719. The only other one I've seen is dated 2002, including the one on this website and the VA website. I got this from my claims agent, who got it from the VA.

      VA Compensation & Pension (C&P) Clinicians Guide 2 Final Corrected 20180719.pdf
      • 5 replies
    • I don’t say thank you enough to all of you...
      You, yes you, are the reason HadIt.com has remained a resource-rich resource. Thousands come each month to read, ask questions, or to feel a sense of community.

      Last month June 2020, we over 50k visitors they viewed over 160k pages. Veterans and their advocates, spouses, children, and friends of veterans come looking for answers. Because we have posts dating back 15 years and articles on the home page, they usually can find an answer or at least get pointed in the right direction.

      You all made that possible. Thank you.
        • Like
      • 3 replies
    • Help HadIt.com stay online buy a subscription
      If you can afford it and want to help hadit.com consider buying a subscription this gives you as free viewing of the site and allows me to budget in subscription payments.
       

      You can try it for 1 month for $5 or get a monthly subscription or a yearly subscription.

      Subscribe here https://community.hadit.com/subscriptions/
      • 4 replies
    • VA has a special where we can ask questions TODAY, at 3:00 to "people that matter?"  Someone should ask why we can not ask them questions EVERY day, why today only? (This is a big problem with VA..the 800 number often does not give specific answers).  We should have people in VA who "solve Vets problems" like Allison Hickey did a few years ago. 
        • Like
      • 8 replies
  • Ads

  • Popular Contributors

  • Ad

  • Latest News
×
×
  • Create New...

Important Information

{terms] and Guidelines