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Economic Stimulus Act of 2008

Do You Qualify for the Economic Stimulus Payment (Rebate)?

Tips for Those Who Normally Don't File a Federal Tax Return and How to Get the Rebate

Under the Economic Stimulus Act of 2008, the basic rebate is $300 ($600 in the case of a joint return), plus $300 for each qualifying child under age 17. Higher rebates may be available for those with a tax liability.

The IRS will use the 2007 federal tax return to determine eligibility and to calculate the amount of the rebate. Many taxpayers do not have to take extra steps to receive the rebate. However, individuals who might not otherwise be required to file a 2007 federal return must file a federal return to get the rebate.

According to the IRS -- see www.irs.gov -- if you file after April 15, with or without a tax-filing extension, your payment will be delayed. If you qualify for a payment, you can insure that you get it by filing your return by October 15, 2008. 

To qualify for the rebate, you must:

     -  File a federal tax return, even if you would not normally file a federal tax return.   
 
     -  Have a valid Social Security Number for yourself, your spouse if filing jointly, and for each qualifying child under age 17.  Taxpayers using an Individual Taxpayer Identification Number (ITIN) or those who can be claimed as dependents on another tax return are ineligible for the rebate. 

     -  Have qualifying income of at least $3,000. If you, or you and your spouse together, have less than this amount, you will not get a rebate. Qualifying income includes:  earned income, Social Security benefits, veterans' benefits (specifically disability compensation, pension or survivors' benefits) and certain Railroad Retirement benefits.  Note: Supplemental Security Income ("SSI") is not qualifying income.

How do I apply for the rebate?
You do not have to apply, but you must file a federal tax return in order to receive the rebate.

What if I already filed my federal tax return before the rebate was announced?
If you had qualifying income reported on your federal tax return of at least $3,000, you do not need to do anything. If you had qualifying income and did not report it on the federal tax return, you may need to file an amended return.  

I don't usually need to file a federal tax return. How do I get the rebate?
You must file a federal tax return. Normally, if you receive Social Security, certain veterans or Railroad Retirement benefits, you do not have to file a federal return. But the Stimulus Act contains a special provision to allow those who receive such benefits to count those benefits toward the qualifying income requirement of $3,000.  So, if you have qualifying income totaling at least $3,000 you should file a federal return to get the rebate.

I am low-income and only file to get the Michigan Homestead Property Tax Credit and the Home Heating Credit. Do I qualify for the rebate?
Yes, if you meet the qualifying income requirements of at least $3,000. You must file a federal return in order to receive the rebate.

Where can I get help with my taxes and the rebate?
If you need help and are low-income, we urge you to avoid using a paid preparer, whose fees will dilute the total value of your refund and rebate. Instead, take advantage of the Volunteer Income Tax Assistance (VITA) program offered by Accounting Aid Society (or other community partners) which offers free tax and tax credit assistance to low and moderate-income taxpayers. Seniors can also receive tax help from AARP.

How do I qualify for free tax assistance and rebate help?
If you are an individual with an annual household income of $20,000 or less, or a family with an annual household income of $40,000 or less, you can receive free tax assistance from Accounting Aid Society. As a nonprofit organization, Accounting Aid has been  serving low-wage working families for more than 30 years.

Our regular tax preparation program is over for the year. We begin our Summer Tax Program May 5. Please call us then if you are low-income and need help: 313-647-9620.

When and how will I get my rebate?
If you file a federal tax return by the normal tax deadline of April 15, 2008, the IRS expects to begin distributing rebates in May. Rebates will be direct deposited for taxpayers who select that option when filing their 2007 tax returns. 

According to the IRS -- see www.irs.gov -- if you file after April 15, with or without a tax-filing extension, your payment will be delayed. If you qualify for a payment, you can insure that you get it by filing your return by October 15, 2008. 

Note: For an excellent article on this topic by Susan Tompor of the Detroit Free Press, "Some Seniors Need to Act Soon to Get Tax Rebate, " which ran February 19, 2008, click here.