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As the stock market melts down and the economy locks up, the giant economic-stimulus plan passed by Congress early this year seems a faint and distant memory. But while nearly $100 billion in tax rebates has already been sent to taxpayers -- and spent, saved or lost in the market -- there are still billions of dollars waiting to be claimed.
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And time is running out.
You must file a 2007 tax return by October 15 to claim your rebate. Make the deadline and you'll have your money in time for the holidays. Miss it and you'll have to wait until you file your 2008 tax returns next spring . . . or you may forfeit your right to the money altogether.
First, a quick refresher on the rebate:
• Payments go to almost everyone who files a 2007 tax return. Most singles get $600; most couples get $1,200, plus $300 for each child younger than age 17 claimed as a dependent.
• The right to the rebate phases out for higher-income taxpayers. The squeeze begins when adjusted gross income passes $75,000 on single returns and $150,000 on joint returns.
• About 20 million citizens whose income is so low they don’t have to file tax returns may qualify for a rebate of $300 ($600 for married couples) if they have at least $3,000 of "qualifying income," which includes Social Security benefits, Veterans’ disability and survivor benefits, and certain Railroad Retirement benefits.
The IRS says it has already mailed or electronically deposited more than $94 billion in rebates to 116 million recipients (some of whom were married couples who filed joint returns).
At the same time, it's estimated that payments for 10 million or so citizens totaling billions of dollars are still waiting to be claimed.
The procrastinators fall into two groups:
• Many of the 10 million or so taxpayers who requested automatic extensions to delay the April 15 deadline. Those who have not yet filed must do so by October 15. If they miss the deadline, they not only pass up the chance for a rebate but also face late-filing penalties. And if they owe money with their return, they’ll be slapped with late-payment penalties and interest charges, too. In other words, they have a lot of incentive to get their returns filed by midnight Wednesday. If you’re in this group and want to see how big your rebate will be, use our Tax Rebate Calculator.
• Several million citizens who don’t have to file a return, because their incomes are so low, but who must file to claim a rebate. The IRS contacted about 20 million citizens who are in this boat, and the agency still hasn’t heard from about four million of them. If you are in this group, or you know someone who might be (a parent or grandparent, perhaps), check out this IRS publication for details.
Claim your cash
To get your rebate, all you have to do is file a 2007 tax return by midnight October 15. There are no extra forms to fill out. Filing the return will trigger the economic-stimulus payment. Whether you file electronically or on paper, complete the section of the tax form for having a refund deposited electronically to your bank account. Do this even if you don't have a refund coming. Why? So the IRS can speed your receipt of your rebate by zapping it to your bank account.
What if you miss the October 15 deadline?
For most taxpayers, missing the deadline won't mean forfeiting the rebate. The payment is actually an advance on a credit that was created for 2008 tax returns. To get the money into the hands of Americans right away, Congress ordered the IRS to compute the payment based on 2007 tax returns. If you don't file for 2007 by October 15, you'll be allowed to claim the credit on the 2008 return you file next spring. In most cases, a rebate delayed will not become a rebate denied.
In some instances, though, missing the deadline will mean missing the rebate. This will occur if you deserve a rebate based on your 2007 numbers but not when your 2008 income is taken into account. If your 2007 income is below the phase-out levels mentioned above, for example, you qualify for a rebate if you file by October 15 . . . even if your 2008 income winds up being too high. The law specifically says that folks in that situation don't have to pay back the rebate. But if you miss that deadline and your 2008 income is too high, you're out of luck.
POSTED BY: DLC (October 11, 2008 10:57 PM)
My father passed away in 2007. When we filed his last "death tax" return, it triggered the tax stinulus payment. Do you really think a person who died in 2007 should be getting a check from the government?
POSTED BY: Cee (October 12, 2008 12:00 PM)
We have a "loss carried forward" from a business we used to have. In 2007, our new business made a profit and we paid more than $600 in social security. However, because we used our loss to offset our income (as we were supposed to do), we are TOTALLY SCREWED OUT of our $1,200 worth of rebate. So much for being hardworking and contribuitng to society!...(And no, it isn't worth refiling because if we didn't claim the loss, we'd have to pay more in taxes than the rebate!)
POSTED BY: ANTHONY A (October 13, 2008 04:44 PM)
we filed on time,and made $21k and with the real estate interest on mortgage, we didn't owe any taxes, we did not get a rebate for us or child...We didn't qualify ?????????
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