With all the talk recently about 2008 the tax rebate stimulus package, I thought it was worth writing a separate article directly towards seniors to answer the question of seniors. Seniors were excluded from the original stimulus package (excluded unless you were a senior who earned more than $3,000 and paid taxes, social security didn’t count as earned income), they are now included because of the hard work in the Senate.
If you earned less than $75k as a single or $150k as a couple (this is your adjusted gross income), then you are eligible to receive $600 each (couples get $1200). For each child under 18, you also get $300 with no limit on the number of children. If you earn more than the limits, every dollar above the limits reduces your amount by 5% of that value. So if you earned $80k AGI as a single, you would reduce your stimulus check by $250. On the lower end of the scale you have to earn at least $3,000 to be eligible.
What changed? If you earned at least $3,000, including disability and social security, then you are eligible for $300 checks. Originally disability and social security checks were not included as income and you would’ve received nothing.
Where is this money coming from? It will come off your 2008 tax return! When you file your tax return next year, any rebate you are due will be reduced by the amount of the stimulus check. If you owe, they will not add on the value of the check you receive this year. It’s a win win situation for the taxpayer and, hopefully, the economy if you go out and spend it like crazy!
So, file your 2007 tax return on time (that’s what the rebate is based on) and await your check.