Earlier this month President Bush signed the economic stimulus plan of $ 168 million in the legislation. For those unfamiliar with the program, it means that most taxpayers will receive $ 300, $ 600 or $ 1,200 rebate plus $ 300 per child. The program's goal is to provide relief to taxpayers and stimulate economic activity by putting some money in Americans' pockets.
There are some significant tax implications and related questions consumers may have on the recovery plan and Amy McAnarney, executive director of the Institute of Tax H & R Block, recently provided answers and insight to consumers.
Will this affect the tax return I have to file before April 15?
No. However, the amount of your refund depends on how much money you earn this year and information from the 2007 tax return you file before April 15.
How long powerful I get my refund?
Checks must be distributed over a period of 10 weeks from May.
If I file my taxes earlier, will that speed when I get my refund?
Checks will not be distributed until May, regardless of when you file, but taxpayers who file for an extension might receive their rebates later than those who file by the deadline in April 15 years.
What if I do not file a tax return this year? Will I still get my rebate this year?
Taxpayers who wish to receive their refund this year must file a tax return this year. H & R Block is among the most affordable choices for Americans who want their rebate but who otherwise do not have to file, with discounted, preparation of business tax from $ 35 in our offices and do-it-yourself options, such as TaxCut online, for as little as $ 14.95.
money I receive reimbursement will be considered as income, and will I be taxed on this next year?
No and no. The repayment is a credit advance for the tax year 2008, based on a tax reduction in the proposed economic stimulus bill.
Are there any limits on which taxpayers are eligible for a refund? What are they?
To qualify for the refund, the taxpayer must have earned income of at least $ 3000, which may consist of income and benefits from Social Security or disability Veterans and have a valid social security number. The repayment is also eliminated in adjusted gross income exceeds $ 75,000, or $ 150,000 for married couples.
For more information on preparing your taxes online and the TED for your 2007 income please visit our tax preparation guide online.