The Internal Revenue Service needs your help.

Starting in May, economic stimulus payments of up to $600 for individuals ($1,200 for married couples) will be issued by the IRS based on 2007 tax returns. Parents also get $300 for each eligible child under age 17. The term, “economic stimulus payment” may confuse some people. Just think of it as an “income tax rebate.”

People must file a 2007 tax return. That’s it. But here’s where the IRS needs help. Millions of people are eligible, but may not know it. These are certain retirees, disabled vets and low-wage workers who normally don’t file a tax return. This year, they must file to receive the payments.

People can help not just the IRS, but perhaps themselves, friends or family. Help us spread the word. People who have at least $3,000 from wages or certain benefits from Social Security, Railroad Retirement and Veterans Affairs may be eligible. They need to file a return. IRS will do the rest. Please, visit www.irs.gov for details.

Starting in May, the U.S. Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest.

Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

Here is a brief overview that will guide you on how you qualify for the payment and how much you can expect to receive:



Step 1: What do I need to qualify to receive an Economic Stimulus Payment this year?

1) A valid Social Security Number (if filing jointly, both people need valid numbers)

2) The ability to claim yourself

3) Need either of the following

a) $3,000 of Social Security, wages, or veteran’s benefits or

b) A net income tax liability of at least $1 and gross income exceeding the standard deduction and personal exemption amounts (two personal exemptions if Married Filing Jointly

4) File a 2007 tax return



Step 2: How much will I receive for my basic payment?

First, you need to determine your net income tax liability (NITL).

• If you file Form 1040: Add lines 52 and 57, this is your NITL.

• If you file Form 1040A: Add lines 35 and 37, this is your NITL.

• If you file Form 1040EZ: Line 10, this is your NITL.



If you’re Married Filing Jointly, and your NITL is

• Below $600

• Between $600 and $1200

• Above $1,200



– Then you will receive $600 as your basic payment.

– Then you will receive a payment equal to your NITL.

– Then you will receive $1,200 as your basic payment.



If you’re any other filing status (Single, Head of Household, Married Filing Separately), and your NITL is:

• Below $300

• Between $300 and $600

• Above $600



– Then you will receive $300 as your basic payment.

– Then you will receive a payment equal to your NITL.

– Then you will receive $600 as your basic payment.



Step 3: Add the child payment amount to your basic payment

If you had qualifying children on your 2007 return, you will receive $300 per child in extra payment amounts. For example, if you had three qualifying children on your 2007 return, you would receive $900 ($300 times 3) in addition to your basic payment.



A qualifying child:

1) Under age 17 at the end of 2007

2) A citizen or resident of the United States

3) Is claimed as your dependent

4) Is your:

a) Son or daughter, adopted child, stepchild, eligible foster child, or a descendant of any of them

b) Brother, sister, stepbrother, stepsister, or a descendant of any of them, if your care for individual as your own child

5) Did not provide more than half of his or her own support

6) Lived with the taxpayer for over half the year



Step 4: Be sure to file!

The IRS will calculate your Economic Stimulus Payment based on the information on your 2007 return. Even if you are not required to file, you still need to file in order to receive your payment.



What if I don’t qualify?

You have a second chance to be eligible for the economic stimulus payment on your 2008 return that your file in 2009.

The above information was provided to the Extension Service from IRS. For more information, contact Susan Cosgrove, Area Family Resource Management Extension Agent at (601)635-2267 or our office at (601)482-9764.