Bush Stimulus Package

[Mike D]

Does anybody know if the rebate applies to a married couple filing separately whom jointly earned $200,000 however one spouse earned less than $50,000?

Thanks

[MN2V]

Not only does nobody on this forum know the answer to that...I think the people who created this "stimulus bill" probably don't even know. I don't think this was very well thought out. Just my confused mind speaking my 2 cents worth (can I get that in canadian coins?)

[JohnH]

Maybe the following info will answer some (but not all) of the questions about who gets what, and when

.

http://www.house.gov/jct/x-16-08.pdf

(Focus on pages 3 - 6)

It clearly puts to bed a few of the speculations about the nature of the payment, including:

1) It is clearly a rebate, based on income showing on the 2007 return.

2) It will not be added to income next year.

3) It will not be deducted from 2008 withholdings or added back to 2008 tax.

However, we will need to ask clients if they received it and account for it on the 2008 return only because any entitled taxpayer who did not get a check will be able to claim an additional credit on their 2008 return - that seems fair.

4) They did anticipate that not everybody will file on Apr 15, and they did take that into account by stating that extension filers will get their checks after they file.

5) I'm not sure about the $300 credit per child, but it appears that it is also a true rebate and will not affect the 2008 child tax credit in any manner.

[MN2V]

THANKS! I printed it out, now to try to digest it.

[TAXBILLY]

Restroom reading!!

taxbilly

[JerryH]

More Clients and more work for next year. from the Jt committee report accessed from the cite shown above. Thanks for the reference I've looked all over for the straight answers to this riddle. Alot of customers will be surprised to get no check or smaller than the max.

Rebate checks

Most taxpayers will receive this credit in the form of a check issued by the Department of

the Treasury. 2 The amount of the payment will be computed in the same manner as the credit,

except that it will be done on the basis of tax returns filed for 2007 (instead of 2008). It is

anticipated that the Department of the Treasury will make every effort to issue all payments as

rapidly as possible to taxpayers who timely file their 2007 tax returns. (Taxpayers who file late

or pursuant to extensions will receive their payments later.)

Taxpayers will reconcile the amount of the credit with the payment they receive in the

following manner. They will complete a worksheet calculating the amount of the credit based on

their 2008 income tax return. They will then subtract from the credit the amount of the payment

they received in 2008. For many taxpayers, these two amounts will be the same. If, however,

the result is a positive number (because, for example, the taxpayer paid no tax in 2007 but is

paying tax in 2008), the taxpayer may claim that amount as a refundable credit against 2008 tax

liability. If, however, the result is negative (because, for example, the taxpayer paid tax in 2007

2 To the extent practicable, the Department of the Treasury is expected to utilize individuals’

current direct deposit information in its possession to expedite delivery of these amounts rather than the

mailing of rebate checks.

5

but owes no tax for 2008), the taxpayer is not required to repay that amount to the Treasury.

Otherwise, the checks have no effect on tax returns filed for 2008; the amount is not includible in

gross income and it does not otherwise reduce the amount of withholding.

In no event may the Department of the Treasury issue checks after December 31, 2008.

This is designed to prevent errors by taxpayers who might claim the full amount of the credit on

their 2008 tax returns and file those returns early in 2009, at the same time the Treasury check

might be mailed to them. Payment of the credit (or the check) is treated, for all purposes of the

Code, as a payment of tax. Any resulting overpayment under this provision is subject to the

refund offset provisions, such as those applicable to past-due child support under section 6402 of

the Code.

[Jack from Ohio]

Here is the official word... We DO NOT have any control over who gets or how much they get. That is what I am telling the hundreds of questions we are getting. I also tell folks not to spend it till they have it in hand.

The Administration and Congress have agreed to an economic growth package that would provide advance payments to many Americans. More details will be available soon, but here are some highlights:

• Starting in May, the Treasury will begin sending stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.
  
• The vast majority of people receiving a payment only need to file a 2007 tax return as they normally would. The IRS will then do all the rest, including determining eligibility and payment amounts.
  
• The Treasury will work to quickly implement this important stimulus package. Additional details on timing of the check mail-outs will be available soon.
  
• The IRS.gov Web site will be the best source of information for all stimulus questions. This web page will contain all the latest information as it becomes available.
  
• The IRS and Treasury will be working closely with the Department of Veterans Affairs and Social Security Administration along with beneficiary organizations to ensure that all eligible individuals know what to do to receive a stimulus payment.