jmcgready’s misc universe

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From the source itself -
link

Q. I chose direct deposit for my 2007 tax refund
but also requested a Refund Anticipation Loan (RAL) from my preparer.
How does that affect my stimulus payment?

A. Taxpayers who use RALs or enter into any other loan
or financial agreement with their tax professional
cannot receive their stimulus payments by Direct Deposit
and instead will get a paper check.

Q. Can my stimulus payment be directly deposited
onto a stored value card or debit card where a
bank product such as a RAL/RAC is not involved?

A. No. [New 4/14/08]

the IRS list of Error Codes for Economic Stimulus Returns

Also, returns with a foreign address or a U.S. Possesions address won’t get ‘em either.
And don’t go adding extraneous paperwork to that Economic Stimulus Tax return either.

0246	Form 1040A - Economic Stimulus Payment with a U.S. Possessions or foreign address can not claim the Stimulus Payment.
0248	Form 1040/1040A Refund Anticipation Loan (RAL) cannot be requested with the Economic Stimulus Payment Return.
0249	Form 1040A - Attachments other than Forms 8901 (Information on Qualifying Children Who Are Not Dependents), Auth Record, Summary Record and Forms W-2 can not be filed with an Economic Stimulus Payment Return.

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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

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Tags: 2008 rebate checks senior citizens, low income tax rebate, qualifying income, Railroad Retirement benefits tax rebate, Social Security benefits tax rebate, stimulus payment, tax return, us stimulus refund, veterans' benefits tax rebate

photo credit: meyshanworld

This is especially key for college students
who aren’t claimed as dependents by their parents.

I found this out when my mom,
who normally doesn’t file as she is on Social Security,
had me check this out for her -

now I’m glad i did
Read the rest of this entry »

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