Archive for the ‘Social Security benefits tax rebate’ tag
Do you believe these six tax rebate myths?
Here are myths the IRS is trying to debunk:
Myth:
The stimulus payment will reduce a taxpayer’s 2008 refund.Fact:
The payment will not reduce refunds
or increase the amount owed
when a 2008 return is filed.Myth:
The stimulus payment is taxable.Fact:
It is not taxable,
but taxpayers are encouraged to keep a copy of the IRS notice
they will receive later this year listing the amount of their payment.In the event a taxpayer does not qualify
to receive the full amount this year
but does next year,
the notice will be a record of the previous amount received.Myth:
Taxpayers needn’t do anything in order to receive a stimulus payment.Fact:
Taxpayers must file a 2007 tax return in order to be eligible for a payment.
After filing a 2007 return: however, the taxpayer is set and the IRS will do the rest.
Myth:
Everybody is eligible for a check.
Fact:
At the minimum, a taxpayer must have at least $3,000 of “qualifying income”
to receive a minimum of $300 for single filers
or $600 for married taxpayers filing a joint return.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 taxpayers filing joint tax returns,
only a total of $3,000 of qualifying income from both spouses
is required to be eligible.Also, for those who don’t normally file,
a tax return – Form 1040A -
will be needed this year to get a check.Myth:
Only paper checks will be issued.Fact:
Direct deposit is the best way to receive the payment.Eligible taxpayers who choose direct deposit for their 2007 tax year refund
will receive their stimulus payment the same way.Myth:
The IRS will contact taxpayers either by telephone or e-mail
about their payments.Fact:
Watch for scams.IRS will not contact taxpayers by telephone or e-mail
about stimulus payments or refunds.Source: www.irs.gov