Posted: 2/14/2008 5:27:29 AM EDT
|
I'm sure by everyone here knows most of this, but I was a little surprised to get the following email form my junior senator. Let's all share the wealth. Earlier today, the President signed the economic stimulus package into law, and I wanted to make sure you had information about its effect on you and your family. This stimulus package will provide 4.5 million people here in Michigan with rebates between $300 to $1200, with an additional $300 for each child who qualifies for the current child tax credit. As a member of the Senate Finance Committee, I led the effort to ensure that seniors living on Social Security and disabled veterans will qualify for these rebate checks. Hopefully, this legislation will only be the first step in addressing the economic crisis facing our state and our nation. In the coming months, I will continue my fight to: 1) extend unemployment benefits; 2) strengthen Trade Adjustment Assistance to help workers who have lost their job because of trade; 3) create new jobs through investments in alternative energy development; and 4) fairly enforce our trade laws to ensure a strong middle class in Michigan and across the country. As always, please don't hesitate to contact me if my office can be of assistance to you or your family. Sincerely, Debbie Stabenow United States Senator Economic Stimulus Package Frequently Asked Questions The Recovery Rebates and Economic Stimulus for the American People Act was signed into law on February 13, 2008. This law will provide millions of Americans with rebates, including over 20 million seniors living on Social Security and 250,000 disabled veterans. Who is eligible to receive a rebate check? In Michigan, 4.5 million Americans will receive a rebate check, including seniors living only on Social Security, disabled veterans and the survivors of disabled veterans. There are two ways to qualify for a rebate check: -Americans who paid income taxes in 2007 on wages or investment income will receive a rebate check for at least $300 for an individual, with married couples receiving at least $600. The rebate will be equal to the taxes they paid, up to $600 for singles and $1,200 for married couples, plus an additional $300 per dependent child under age 17. That amount will be reduced by $50 for every $1,000 above the income limits of $75,000 for individuals and $150,000 for married couples. -Americans who earn too little to pay taxes but earned at least $3,000 in qualifying income in 2007 will receive checks of $300 if single or $600 if a married couple. Qualifying income includes: net self-employment income, Social Security benefits and payments to disabled veterans or their survivors. What do I need to do in order to receive a rebate check? 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 IRS and Treasury Department will also 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 rebate check. When will I receive my rebate check? The Treasury Department has stated that the IRS will start mailing out rebate checks in May. Does the rebate affect my taxes for 2008? No, Americans will not have to pay taxes on the rebate amount on their 2008 tax filing. In addition, the rebate amount will not reduce a taxpayer's 2008 tax refund. The rebate checks are an additional tax credit for 2008 that is being advanced to tax filers this year. Are all individuals who receive Social Security benefits or Social Security disability eligible to receive the rebate even if they don't pay taxes? Yes, as long as the individual has earned $3,000 in Social Security benefits or Social Security disability during 2007, they will receive a rebate check of $300 for individuals or $600 for married couples. The IRS will be working closely with the Social Security Administration to ensure that all eligible individuals receive a rebate check. Are all disabled veterans or the survivors of disabled veterans eligible to receive a rebate even if they don't pay taxes? Yes, as long as the individual has earned $3,000 in veterans' disability during 2007, they will receive a rebate check of $300 for individuals or $600 for married couples. The IRS will be working closely with the Department of Veterans Affairs to ensure that all eligible individuals receive a rebate check. If an individual worked part of the year and then went on Social Security, how will their rebate check be determined? As long as the individual earned $3,000 in qualifying income, the mix of wages, Social Security, and veterans disability income does not matter. The individual will receive a minimum of $300 if they paid $0 to $300 in federal income taxes in 2007. For individuals who paid between $300 and $600 dollars, they will receive a rebate equal to the amount of taxes they paid. For individuals who paid over $600 in taxes, they will receive a maximum rebate of $600. These numbers double for married couples. What if I have a child who is over 17 years old and has qualifying income of at least $3000, but whom I claim as a dependent? Who can receive a rebate check? Because your child is over 17 years old, you cannot receive the additional $300 on your rebate. Your child, however, can file a tax return and receive a rebate. Why were the unemployed excluded? Will they be included in the future? The Senate version of the stimulus bill included provisions authored by Senator Stabenow that would have extended federal unemployment insurance by 13 weeks in all states, and an additional 13 weeks in states, like Michigan, that are experiencing high unemployment. Unfortunately, this failed to pass the Senate by one vote and was not included in the final version of the stimulus bill. Senator Stabenow will continue to fight to have unemployment insurance extended in a future bill. |