Straight from the horses mouth about the Economic Stimulus Plan…

So in stumbling around today I found on the IRS website the Economic Stimulus plan layout dated Feb 15, 2008.

If you’re not sure what it is, or if you’re going to get it… “…starting in May, the US Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.

The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments.

In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child. Payments could be less, depending on tax liability and Adjusted Gross Income.

Phaseout reduction begins at $75,000 for single filers and $150,000 for joint filers.Examples of how the Economic Stimulus Act of 2008 may affect taxpayers who are married, file a joint return and have children who qualify for the child tax credit payment:

1) Married couple with two children, wages of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

2) Married couple with two children, no wages, veterans’ payments of $2,000, social security benefits of $2,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200
3) Married couple with two children, no wages, no social security benefits, veterans’ payments of $4,000, no federal income tax liability before child tax credit.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

4) Married couple with two children, no wages, no social security benefits, no veterans’ payments, AGI is $25,000, federal income tax liability before child tax credit is $70.
Individual rebate is $600
Qualifying child credit is $600
TOTAL is $1,200

5) Married couple with two children, AGI is $35,000, federal income tax liability before child tax credit is $1,070.
Individual rebate is $1,070
Qualifying child credit is $600
TOTAL is $1,670

6) Married couple with two children, AGI is $80,000, federal income tax liability before child tax credit exceeds $1,200.
Individual rebate is $1,200
Qualifying child credit is $600
TOTAL is $1,800

7) Married couple with two children, AGI is $160,000, federal income tax liability before child tax credit exceeds $1,200.
Individual rebate is $1,200
Qualifying child credit is $600
Phaseout reduction is ($500)
TOTAL is $1,300

Related Items:

It looks like my initial estimate is off a bit, but still a nice piece of cash that will certainly help out my ROTH IRA in 2008…

Filed Under: financial educationReaders RequestsTaxes

  • The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year.

  • Love it!
    Really love this blog mate