$600 Per Person Special Gift

The IRS will start sending out the economic stimulus payments in May, and all you have to do is file a tax return. The IRS will use the information to determine eligibility and calculate the amount. Payments will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future. In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return). The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income. Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment. Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit. Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly. For more information check out http://www.irs.gov/newsroom/article/0,,id=179094,00.html