Waverly Tax Service, Inc. Outlines Top "5" Steps to Take for Those Who May Qualify for a Stimulus Payment Rebate
Now that the stimulus plan has been signed into law, many people are wondering if they qualify and how to ensure they receive this rebate. The Ellicott City, MD office of Waverly Tax Service is working with local taxpayers to offer some at-a-glance facts and identify the Top “5” Things Most Individuals Can Do for those who qualify for a tax rebate as part of the stimulus plan.
Ellicott City, MD, February 24, 2008 --(PR.com)-- If you are expecting a check or money directly deposited into your bank account as part of the stimulus plan, here are five steps to take, according to John J. Lah, Principal Financial Advisor for Waverly Tax Service:
1. File Your 2007 Income Tax Return – Not only may you be among the 85% of taxpayers who have a tax refund coming each year…you may also qualify for a stimulus payment check.
2. File Early – The IRS will still send out checks through December, but why wait? The earlier you submit a tax return, the more likely you are to receive your stimulus payment earlier, perhaps as soon as May.
3. E-file – Give yourself the convenience, speed and assurance that your income tax return is received.
4. Zero Income, Zero Tax and Zero Payment…Make Sure You File - Certain qualifying individuals, including seniors, who meet eligibility criteria and may not typically file an income tax return each year will need to be sure to file to receive the rebate. They can do so by visiting a local Jackson Hewitt tax preparer and filing a paper Form 1040A or Form 1040.
5. Watch Out For Your Two IRS Notices - Most taxpayers will receive two notices from the IRS – one explaining the stimulus payment program and another confirming the recipients’ eligibility, the payment amount and the approximate time table for the payment. Save the second notice to help in preparing your 2008 tax return next year.
More than 130 million individuals are expected to receive stimulus payment checks, starting in May. Quick facts you need to know include:
· Payment amount will equal the amount of one’s tax liability on their 2007 income tax return, with maximum amounts of $600 (for single filers) and $1,200 (for joint return filers), and minimum amounts of $300 and $600 respectively.
· For those with little or no tax liability, but $3,000 or more in qualifying income, they may qualify to receive a minimum payment of $300 (for single filers) and $600 (for joint return filers).
· Qualifying individuals with a child/children will receive an additional $300 for each child (subject to income phase-outs).
· Qualifying incomes for the stimulus payment include: wages, net self-employment income, social security, certain railroad retirement benefits, veterans’ disability compensation, pension or survivors’ benefits received in 2007.
· Those who do not regularly file income tax returns, but earn a low-income, as well as social security recipients, certain Railroad retirees, and those who receive select veteran’s benefits, must file a 2007 income tax return.
· Social Security, Railroad retirement and select veteran’s benefits recipients must: 1) file Form 1040X to list non-taxable benefits, if they have already filed a 2007 return and received less than $3,000 in qualifying income or 2) for those who are normally not required to file an income tax return, they must report their benefits of $3,000 or more on Form 1040A or Form 1040, to establish their eligibility.
· Individuals who do not pay tax and have less than $3,000 of qualifying income will not qualify for a stimulus payment check.
· Individuals who file Form 1040NR, 1040PR or 1040SS and those who can be claimed as a dependent do not qualify for a stimulus check.
Tax preparers at Waverly Tax Services are available to assist individuals with questions regarding the stimulus checks and to help them get started now with preparing and filing their 2007 tax returns. For more information or to schedule an appointment, please call 410-461-5623.
About Waverly Tax Service Inc.
Waverly Tax Service, Inc. is an Ellicott City, MD based provider of federal and state income tax preparation and financial planning services. More information may be obtained at www.my-finance.net.
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1. File Your 2007 Income Tax Return – Not only may you be among the 85% of taxpayers who have a tax refund coming each year…you may also qualify for a stimulus payment check.
2. File Early – The IRS will still send out checks through December, but why wait? The earlier you submit a tax return, the more likely you are to receive your stimulus payment earlier, perhaps as soon as May.
3. E-file – Give yourself the convenience, speed and assurance that your income tax return is received.
4. Zero Income, Zero Tax and Zero Payment…Make Sure You File - Certain qualifying individuals, including seniors, who meet eligibility criteria and may not typically file an income tax return each year will need to be sure to file to receive the rebate. They can do so by visiting a local Jackson Hewitt tax preparer and filing a paper Form 1040A or Form 1040.
5. Watch Out For Your Two IRS Notices - Most taxpayers will receive two notices from the IRS – one explaining the stimulus payment program and another confirming the recipients’ eligibility, the payment amount and the approximate time table for the payment. Save the second notice to help in preparing your 2008 tax return next year.
More than 130 million individuals are expected to receive stimulus payment checks, starting in May. Quick facts you need to know include:
· Payment amount will equal the amount of one’s tax liability on their 2007 income tax return, with maximum amounts of $600 (for single filers) and $1,200 (for joint return filers), and minimum amounts of $300 and $600 respectively.
· For those with little or no tax liability, but $3,000 or more in qualifying income, they may qualify to receive a minimum payment of $300 (for single filers) and $600 (for joint return filers).
· Qualifying individuals with a child/children will receive an additional $300 for each child (subject to income phase-outs).
· Qualifying incomes for the stimulus payment include: wages, net self-employment income, social security, certain railroad retirement benefits, veterans’ disability compensation, pension or survivors’ benefits received in 2007.
· Those who do not regularly file income tax returns, but earn a low-income, as well as social security recipients, certain Railroad retirees, and those who receive select veteran’s benefits, must file a 2007 income tax return.
· Social Security, Railroad retirement and select veteran’s benefits recipients must: 1) file Form 1040X to list non-taxable benefits, if they have already filed a 2007 return and received less than $3,000 in qualifying income or 2) for those who are normally not required to file an income tax return, they must report their benefits of $3,000 or more on Form 1040A or Form 1040, to establish their eligibility.
· Individuals who do not pay tax and have less than $3,000 of qualifying income will not qualify for a stimulus payment check.
· Individuals who file Form 1040NR, 1040PR or 1040SS and those who can be claimed as a dependent do not qualify for a stimulus check.
Tax preparers at Waverly Tax Services are available to assist individuals with questions regarding the stimulus checks and to help them get started now with preparing and filing their 2007 tax returns. For more information or to schedule an appointment, please call 410-461-5623.
About Waverly Tax Service Inc.
Waverly Tax Service, Inc. is an Ellicott City, MD based provider of federal and state income tax preparation and financial planning services. More information may be obtained at www.my-finance.net.
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Contact
Waverly Tax Service, Inc.
John J. Lah, MBA, CFA
410-461-5623
www.my-finance.net
John J. Lah, MBA, CFA
410-461-5623
www.my-finance.net
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