Mei-Feng Moe, EA
Mei-Feng Moe (May) is a
Master Tax Advisor certified by
H&R Block. In addition to
giving tax advice and preparing
income tax returns, she has also
been teaching income tax
courses for a number of years.
She is an Enrolled Agent who
may represent clients before
the IRS. She also holds series 6
and series 63 security licenses.
Master Tax Advisor certified by
H&R Block. In addition to
giving tax advice and preparing
income tax returns, she has also
been teaching income tax
courses for a number of years.
She is an Enrolled Agent who
may represent clients before
the IRS. She also holds series 6
and series 63 security licenses.
Tax Rebate:
"Economic Stimulus Act of 2008"
"Economic Stimulus Act of 2008"
Your Master Tax Advisor/Mei-Feng Moe
On February 13, Pres. Bush signed into law the Economic Stimulus Act of 2008. The
provisions of this act allow for the much anticipated tax rebates, incentives for business
investment and mortgage relief. This article reviews the basic information on the Stimulus
Payments, often referred to as "tax rebates."
In March, the Internal Revenue Service started sending out special letters to more than
130 million American households. By now, you might have received such a letter, titled
Economic Stimulus Payment Notice, to inform you that you may be eligible to receive a
one-time stimulus payment.
Under the Economic Stimulus Act, a portion of the 10 percent tax bracket is temporarily
reduced to 0 percent for tax year 2008. The rebate is a prepayment of this portion of the
tax cut. To qualify for this rebate, you must have a valid social security number and file
your 2007 tax return to show at least $3,000 "qualifying income." Dependents are not
eligible for the rebates.
If you are a nonresident alien using ITIN (Individual Taxpayer Identification Number) to
file your tax return, you do not qualify for the rebate payment. For a "married filing joint"
return, both spouses must have a valid Social Security number. If you don't have a valid
SSN at the present time but later become eligible, you may file an amended 2007 return
to claim the rebate; or you may claim the economic stimulus payment on your 2008
return.
Qualifying income includes earned income from wages or self-employment, Social
Security benefits and/or disabled veterans' benefits (including benefits paid to a surviving
spouse). People who are normally not required to file a return but have such qualifying
income are encouraged to file their 2007 tax returns in order to receive the rebate checks.
The minimum rebate amount for qualifying taxpayers is $300 ($600 for joint filers) and the
maximum amount is $600 for individuals and $1,200 for joint filers. The rebate amount is
increased by $300 for each qualifying child and begins to phase out at $75,000 adjusted
gross income for individuals and $150,000 for joint filers.
The IRS will begin sending out rebate checks to eligible taxpayers in May. For those
taxpayers who indicated on their 2007 return to receive their tax refund by direct deposit
in their bank accounts, the IRS will deposit the rebate in the same bank accounts.
Your rebate amount is based on information reported on your 2007 tax return. The IRS
will calculate your eligible amount based on your net income tax liability and
automatically send you a check or deposit the rebate in your bank account. If you are
interested in finding out more information on the stimulus payments, you may check out
the special IRS.gov section which includes answers to frequently asked questions with
extensive examples of how much taxpayers can expect to receive in rebate payments.
provisions of this act allow for the much anticipated tax rebates, incentives for business
investment and mortgage relief. This article reviews the basic information on the Stimulus
Payments, often referred to as "tax rebates."
In March, the Internal Revenue Service started sending out special letters to more than
130 million American households. By now, you might have received such a letter, titled
Economic Stimulus Payment Notice, to inform you that you may be eligible to receive a
one-time stimulus payment.
Under the Economic Stimulus Act, a portion of the 10 percent tax bracket is temporarily
reduced to 0 percent for tax year 2008. The rebate is a prepayment of this portion of the
tax cut. To qualify for this rebate, you must have a valid social security number and file
your 2007 tax return to show at least $3,000 "qualifying income." Dependents are not
eligible for the rebates.
If you are a nonresident alien using ITIN (Individual Taxpayer Identification Number) to
file your tax return, you do not qualify for the rebate payment. For a "married filing joint"
return, both spouses must have a valid Social Security number. If you don't have a valid
SSN at the present time but later become eligible, you may file an amended 2007 return
to claim the rebate; or you may claim the economic stimulus payment on your 2008
return.
Qualifying income includes earned income from wages or self-employment, Social
Security benefits and/or disabled veterans' benefits (including benefits paid to a surviving
spouse). People who are normally not required to file a return but have such qualifying
income are encouraged to file their 2007 tax returns in order to receive the rebate checks.
The minimum rebate amount for qualifying taxpayers is $300 ($600 for joint filers) and the
maximum amount is $600 for individuals and $1,200 for joint filers. The rebate amount is
increased by $300 for each qualifying child and begins to phase out at $75,000 adjusted
gross income for individuals and $150,000 for joint filers.
The IRS will begin sending out rebate checks to eligible taxpayers in May. For those
taxpayers who indicated on their 2007 return to receive their tax refund by direct deposit
in their bank accounts, the IRS will deposit the rebate in the same bank accounts.
Your rebate amount is based on information reported on your 2007 tax return. The IRS
will calculate your eligible amount based on your net income tax liability and
automatically send you a check or deposit the rebate in your bank account. If you are
interested in finding out more information on the stimulus payments, you may check out
the special IRS.gov section which includes answers to frequently asked questions with
extensive examples of how much taxpayers can expect to receive in rebate payments.