TANNER ANSWERS QUESTIONS ON
ECONOMIC STIMULUS TAX REBATES

Taxpayers must file 2007 returns to get rebate checks

WASHINGTON -- U.S. Rep. John Tanner released the following information about the 2008 economic stimulus program that will provide rebate checks for many middle-class Tennessee taxpayers. Tanner serves on the House Ways and Means Committee, which has jurisdiction over tax policy.

What is the economic stimulus plan?

To help families feeling the crunch of today’s slow economy, the federal government will send rebate checks to millions of taxpayers as a way to increase families’ spending power and boost the economy.

The payments range from $300 to $600 for individual taxpayers and up to $1200 for married couples. Parents may also qualify for a $300 payment for each eligible child younger than 17. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return.

Who is eligible to get a payment?

Most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. Families with children under 17 generally will qualify for an additional payment.

Some other taxpayers may also qualify, including Social Security, Railroad Retirement and veterans' affairs beneficiaries; low-income workers with earned income or benefits of at least $3,000; and individuals who have combined income of at least $3,000 from any combination of these sources. Supplemental Security Income (SSI) does not count toward the $3,000 minimum.

The stimulus payment begins to phase out for individuals with adjusted gross incomes over $75,000 and married couples who file joint returns with adjusted gross incomes over $150,000.

How do I get a payment?

All you need to do is file a federal income tax return for 2007.

I don’t usually have to file a return. Do I need to this year?

Yes. Low-income workers, Social Security beneficiaries, certain railroad retirees and those who receive certain benefits from the Department of Veterans Affairs who may not be required to file returns in other years will need to file 2007 returns to qualify for stimulus payments.

The IRS Free File program will help file tax returns for those taxpayers who do not usually have to file. Visit www.irs.gov or call (800) 829-1040.

When will I receive my stimulus payment?

The Treasury Department will start sending out payments in early May. The checks will be mailed separately from 2007 tax refunds. If you entered direct deposit information on your 2007 tax return to receive all of your tax refund by direct deposit, your stimulus payment will also be distributed by direct deposit. Otherwise, you will receive a paper check in the mail.

How can I calculate my anticipated payment or get more information?

Visit your local IRS office, see the IRS online at www.irs.gov or call (800) 829-1040. Hearing-impaired callers should call (800) 829-4059 (TDD).

Tanner represents Tennessee’s 8^th Congressional district in west and middle Tennessee.

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Contact: Randy Ford, 202.225.4714