The U.S. Government’s Economic Stimulus plan, which will distribute rebate checks to more than 130 million households beginning in May 2008, contains some special requirements for members of the military.
Individuals must meet certain requirements to qualify for a Stimulus Payment, For example, payments, which will be based on an individual’s 2007 U.S. income tax return, start to phase out for income in excess of $75,000 for single taxpayers or $150,000 for married couples who file a joint return.
If you are active duty, retired or a veteran – and you are required to file a U.S. individual income tax return – file your tax return as you normally would, and you will receive the Stimulus Payment to which you are entitled. Many taxpayers will get the maximum amount: $600 for single filers or $1,200 for those who are married and file a joint return. There is an additional $300 for each child listed on the tax return who has a Social Security number and is a qualifying child for the Child Tax Credit.
For members of the military, qualifying income that is considered for the Stimulus Payment is as follows:
- Combat pay
- Veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs
- Earned income, such as wages and net self-employment income
- Social Security benefits
- Social Security equivalent Tier I Railroad Retirement benefits
There are many people who traditionally do not file a tax return, such as seniors and retirees, who may wish to file this year in order to be eligible for a rebate. If you are not required to file a tax return, you still may qualify to receive a Stimulus Payment. If you are among this group, your payment will be $300 for single filers or $600 for those who file a joint return.
To qualify, you must:
- Have a Social Security number
- Not qualify as a dependent of another individual
- Have qualifying income of $3,000 or more
- File a U.S individual income tax return for tax year 2007
The Internal Revenue Service (IRS) will make every effort to issue Stimulus Payments as rapidly as possible to individuals who file their 2007 tax returns on time (by the tax filing deadline of April 15, 2008). Those who file late or on extension will receive their payments later. However, those who do not file their 2007 tax returns in time to get a Stimulus Payment (no checks will be issued after December 31, 2008) can claim a refundable credit for the payment on their 2008 tax returns, if they qualify. This should be particularly good news for those who qualify for long-term extensions due to service in a combat zone, service in a qualified hazardous duty area, and deployment outside the U.S. away from their permanent duty stations while participating in contingency operations.
For other requirements regarding rebates, visit www.jacksonhewitt.com and consult the section on Government Rebate Checks. Additional information can also be found by visiting a local Jackson Hewitt office. To locate the nearest office, log on to www.jacksonhewitt.com and click on the Office Locator feature, or call 1-800-234-1040.
