| Stimulus Payment Checks in 2008 |
President Bush signed the two-year, $168 billion
stimulus rescue package passed in 2008 by Congress. The stimulus package includes not only tax breaks for businesses,
but also stimulus payment checks for individuals in order to help bolster the
U.S. economy.
The stimulus rescue checks provide $600 for income tax paying individuals and $1,200 for couples, plus $300 for each child younger than age 17. Also, $300 payments would go to Social Security beneficiaries, disabled veterans and veterans’ widows who can show at least $3,000 in Social Security or veterans’ disability benefits, and who file a tax return.
The only way to receive a stimulus payment check in 2008 is to file a 2007 tax return. The vast majority of taxpayers must take no extra steps to receive their stimulus payment check beyond the routine filing of their tax return.
But, it could be a little trickier for Social Security, Railroad retirement, certain veterans, and low-income workers who wouldn't normally file a tax return. These individuals must file a tax return this year, even if they don
’t owe any tax, in order receive a stimulus payment check! The IRS will release soon a special version of a Form 1040A that is required in order for these beneficiaries to receive a stimulus payment check.Also, taxpayers with Social Security, Railroad Retirement or veterans’ benefits who have already filed, but did not report their qualifying benefits on either Line 14a of Form 1040A or Line 20a of Form 1040, need to file an amended return in some situations to receive a stimulus payment. Taxpayers who already have filed but did not report their benefits can file an amended return by using Form 1040X, which can only be filed with a paper form.
Filing these forms does not create any additional tax or trigger a tax bill. In addition, the stimulus payment checks will not have any effect on eligibility for federal benefits, and is non-taxable.
If you have moved since filing your 2007 tax return you should file a Form 8822 with the IRS and a change of address notice with the U.S. Postal Service. This will ensure your check is sent to your new address.
The U.S. Treasury Department will begin sending taxpayers their stimulus payment checks in early May after the current tax season concludes. The exact payment schedule will be announced in the near future on the www.IRS.gov website.
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