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Answers about the Government’s Stimulus Package Payments

March 5, 2008
By MoneyRates team | Money-Rates Columnist

There have been a lot of questions about the Who? What? Where? and Why? of the government’s stimulus package payment to US taxpayers recently approved by Congress. Here are all the answers provided directly by the Internal Revenue Service on their website:

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.

The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won’t need to do anything else to receive the stimulus payment. For taxpayers who haven’t filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Basic Eligibility

The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans’ benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.

The IRS emphasized that people with no filing requirement who turn in a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.

Additional Payments for Parents and Others with Qualifying Children

Parents and anyone else eligible for a stimulus payment will also receive an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.

Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.

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18 Comments »

  1. Anonymous March 23, 2008 Anonymous says:

    I have paid taxes in prior years i.e. 2004, 2005, and 2006. This is unfair for full time students that support theirself who have no income but instead taken out loans to live on rather than food stamps or unemployment.

  2. Anonymous April 13, 2008 Anonymous says:

    The Government lied once again…i read on another website that I can’t receive an economic stiumulus refund because I still live at home and my parents can claim me as a dependent. This really really makes me mad! I am a full-time student, i’m broke and i have no money and I have been looking forward to getting my money since President Bush signed the bill in january or whenever it was. And the stupid government fails to tell those of you who are broke college students and still live at home, that you won’t be getting that extra money in the summer like you thought you were. Thanks alot!!!

  3. Anonymous April 15, 2008 Anonymous says:

    Grow up and read the entire news article next time. It seems quite apparent that one would have to be a self-sufficient taxpayer to qualify for an economic tax stimulus package.

    Get a job in a bar on campus, sell pizzas or wait tables. Life’s too short to whine about free handouts. Anything worth having requires effor to achieve it.

  4. Anonymous April 18, 2008 Anonymous says:

    well said.

  5. Anonymous April 18, 2008 Anonymous says:

    If the government can aford to bail our the FRAUD committed by the investment banks starting with Bear Stearns they can certaintly aford to help out college students!

    WAKE UP AMERICA!! BEAR STEARNS and the wealthy banks got the biggest welfare check in history!

  6. Anonymous April 29, 2008 Anonymous says:

    Wasn’t it just this year I noticed while filling out the FAFSA that the policy has changed to screw over all college kids, that you are a dependent until age 23, (unless you get married), whether you live at home or not?

    Interesting timing…

  7. Anonymous May 6, 2008 Anonymous says:

    Nah, it was that way in 2001 when I went to college, nothing different.

  8. Anonymous May 8, 2008 Anonymous says:

    To all the poor, deprived college students out there in dream land I hear your plight and I’m truly sympathetic to your cause! I, unlike the government have a solution that will cure you from all your ailments… Drop out of college cause you obviously dont deserve to be there! Maybe you should stop and take a good look around you! You’re in COLLEGE! Despite what you think it’s a privelage to be there at all. Not everyone is as fortunate as you. Always remind yourselves of that!

  9. Anonymous May 8, 2008 Anonymous says:

    That’s the truth! I busted my hump to put myself through college…lived on ramen noodles and kool-aid…lost tons of sleep studying and working 2-4 jobs at a time…and even though I am out in the world earning my own living now…I’d do it again. To you college students…you want the check…GET A JOB AND FILE YOUR OWN TAXES! Welcome to the real world folks. Want to really make a difference? Finish college and go to congress…or drop out and whine about it.

  10. Anonymous May 9, 2008 Anonymous says:

    No Kidding. I am a college student and have worked my butt off to get good grades but that is no reason that you should be a lazy slacker. I have taken rigorous courses for the last 3 years and am almost done but that hasn’t made me not work. I have always worked between 30 and 50 hours a week on top of 18 credit hours with 3-4 4hour labs a week. So don’t complain saying you need the money. Get a job and maybe you’ll have purpose in life. If you can’t go to school and work atleast a little bit you should not be in school at all because you are too lazy to ever get a good job anyway so stay out of the work area. It is better for everyone if you don’t or just plain grow up and stop having your mommy and daddy continue to hand feed you everything.

  11. Anonymous May 12, 2008 Anonymous says:

    This is for all the people bashing on college students for whining about not getting a stimulus check…i am a college student, and i made well over $3000 last year,i filed my own taxes, and i got a refund check, i will not be receiving a stimulus check because i am considered dependent from my parents….it was initially said that “everyone who receives paychecks”, and “all taxpayers” were going to get a stimulus check…so that means i will have to pay more taxes next year to cover some of the stimulus bill that i did not benefit from

  12. Anonymous May 14, 2008 Anonymous says:

    I agree with the other college students here. I made over $8,000 and on top of that I’m also a full-time student. Living with my parents to save me money but I still have my own bills to pay. That check would of really helped me. My parents were told that by law they had to label me dependent because I lived with them for over six months.

  13. Anonymous May 16, 2008 Anonymous says:

    IM sorry to the college students that are missing out on the stimulus package, but quite frankly MOST of you are dependent on your family, and you are technically getting a portion of the money, BUT, It is going to your parents. Try asking them for your share of it! Im sure that wont get you anywhere unless your parents have large hearts or lots of money, but either way.

    Either get a job file independently like I did while in college or stop complaining, I wish my parents would have helped me through school, thats worth more than a one time payment of $300-600.

  14. Anonymous May 17, 2008 Anonymous says:

    I am a college student and made well over $3,000 last year. I was also noted as a dependent of my parents, but I file my taxes on my own just like anyone else. HOWEVER, my parents did NOT receive a portion of money on my behalf. They were given portions for my younger siblings, but not for me. This does frustrate me! If I’m not going to receive the money that I thought was coming, my parents should! This group of us college students who make our own money and file taxes, yet are “dependents” of our parents are getting the low end of the bargain. My 5 year old sister is getting a portion of it for heaven’s sake!

  15. Anonymous May 17, 2008 Anonymous says:

    I am a college student and made well over $3,000 last year. I was also noted as a dependent of my parents, but I file my taxes on my own just like anyone else. HOWEVER, my parents did NOT receive a portion of money on my behalf. They were given portions for my younger siblings, but not for me. This does frustrate me! If I’m not going to receive the money that I thought was coming, my parents should! This group of us college students who make our own money and file taxes, yet are “dependents” of our parents are getting the low end of the bargain. My 5 year old sister is getting a portion of it for heaven’s sake!

  16. Anonymous May 17, 2008 Anonymous says:

    First, I’d like to point out that I’m a college student. All of you that have been commenting bashing college students, really should think twice before you do so. I work two jobs through school, paying myself and through loans. I am NOT dependent on my parents for ANYTHING other than the occasional visit home to say hi. I was under the impression I was receiving a stimulus check, just as the other students were. I don’t think it’s fair that I worked so hard last year to help pay for college that I am getting NO HELP for from my parents and thought I would perhaps receive a little something I could spend on myself..but I guess in your eyes that’s too much to ask for.

    Also, for those who say it’s a privilege to go to school, you’re absolutely right. However, it’s not impossible so I never want to hear someone who “couldn’t” go to school. It’s your choice. Don’t pull that with someone who has been through what I’ve been through trying to get through school - it’s absolutely ridiculous.

    Lastly, you say we’re wining, etc. It seems to me that you’re wining about all of this and need to relax. Students work just as hard, if not harder, to make a living and get through school so again, think twice before you speak.

  17. Anonymous July 8, 2008 Doug D. says:

    I’m a parent of college student who works her butt off, lives at home, and paid taxes on $4400 income in 2007. She is not eligible for the Stimulus Package on her tax return and not an eligible child on our tax return. Congress simply blew it and wrote rules that missed this group of taxpayers. Email your congressional reps (house.gov) and senators (senate.gov) and your college president’s office about the inequity. Don’t just complain, be a citizen.

  18. Anonymous July 21, 2008 Anonymous says:

    I am trying to figure out why I didn’t get a tax rebate check in 2001. I made around 20-25k that year and was a full time student, paid full taxes as a single dependent taxpayer. Were the rules different that year? Or possibly was that rebate given with the tax refund? I don’t remember but very curious why I never received one.

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