President Bush confirms stimulus package; rebate checks going out

By Magdalini Ioannidis
Collegian Staff
February 20, 2007

President George W. Bush is hoping to improve the economy by sending rebate checks to tax filers. A recession is looming in the United States’ financial markets that are making many concerned.

This new economic stimulus plan was announced Feb 13. Checks will only be distributed to people who file taxes for the 2007 tax year. About 10 to 20 million individuals did not expect to file this year, but hopefully this plan will be incentive enough for them to file, according to a rough estimate from the Internal Revenue Service. Around 130 million Americans are eligible for the rebate check as long as their taxes are filed. Checks will be sent out as early as May.

Another requirement to receive the rebate is to file by the standard date of April 15. If the taxpayer normally files for extension or otherwise delays filing they will not receive their rebate check until their filing is complete.

There is no specific order in which checks will be distributed for those who file before April 15th. Also, payments from the IRS will not be received with regular refunds. Tax filers should expect a notice 7 to 10 days before receiving their rebate check indicating the amount to be received. Amounts will be according to the tax payer’s files. Using direct deposit will speed up the process because when the notices are sent out, the checks will be deposited about the same time. Another uncustomary benefit of the rebate plan is if mistakes have taken place, no adjustments will need to been made if the tax payer receives too much money from the IRS. One of the greatest benefits of the economic stimulus plan is it will not count for taxable income for the following 2008 tax year. The package is free money from the government. To ward off frauds, the government has established parameters. In order to receive a rebate, taxpayers, including all eligible children must have a valid social security number.

A breakdown of the packag’s distribution is as follows, if individuals with an adjusted gross income up to $75,000 will be eligible for up to $600. Married couples filing jointly with an AGI up to $150,000 will receive up to $1,200. After those income levels, the rebate starts phasing out. For anyone who makes over $75,000 filing single or $150,000 for those who file married joint, their rebates are reduced five cent for every dollar above the income limit, the IRS has stated. This means that rebates are reduced $50 for every $1,000 over the income limit. Workers who do not earn enough to pay income taxes, but have earned income, including Social Security and certain veteran’s benefits of at least $3,000 would be eligible for $300, or $600 for couples filing married jointly. Tax payers will receive an additional $300 per child and there is no limit for how many child-based rebates. However, if you have filed a return but reported less than $3,000 in income, you may need to file an amended return to be sure your qualifying Social Security or veteran’s benefits are counted. If tax payers have already filed, all he or she needs to do is wait for his or her check in the mail. It is important to remember the purpose of the rebate check is to put that money back into the economy. The greatest fear is the funds will be allocated to pay off accumulated debts or bills, not to buy new things stimulating the economies overall growth.

ioannidism1@lasalle.edu