There is nothing like the promise of free money to get the rumor mill buzzing. That would explain all the bad information swirling around about the coming stimulus rebate checks.
Some taxpayers, frantic that they are going to miss out on the payments, are falling victim to inaccurate information and identity theft scams.
First, take a deep breath. The Internal Revenue Service will not start mailing the stimulus checks until May. There are no advance payments, even if you file your 2007 taxes early. Anyone offering you a payment before May is trying to scam you.
Here are some answers to a few common questions:
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How do I get my check?
You must file a 2007 tax return. This rule applies even to people who traditionally are not required to file a return because of their low income levels. This may include people who receive Social Security checks and veterans or disability payments. These people should complete the 1040A tax form and mail it by the April 15 tax deadline.
IRS spokesman Mark W. Hanson said people can have these returns completed for free at a local IRS taxpayers assistance center or IRS Volunteer Income Tax Assistance office. To find a assistance center you can call (800)-829-1040 or go to IRS.gov and click "contact my local office." To find the nearest volunteer assistance site, call 211 (trust me, it works), then choose option 5.
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When will I get the money?
The IRS will begin issuing checks May 2. All checks are expected to be in the mail by July 11, with taxpayers who get refunds direct-deposited getting their money first. The timing will depend on the last two digits of your Social Security number.
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What if I owe Uncle Sam? If you owe taxes, have a delinquent student loan or owe child support, the IRS may apply your rebate to that outstanding amount, Hanson said. In that case, you will receive a letter from the IRS explaining how it distributed your money.
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How much will I get?
Filers will receive as much as $600, depending on their income levels. Filers who have children receive an additional $300 per qualifying child. The amounts start to phase out for individuals with incomes above $75,000 and joint filers with incomes above $150,000.
The IRS has set up an online calculator you can use to determine your eligibility and estimate your rebate at www.irs.gov/app/espc.
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What if my net income was less than $3,000. Will I get a check?
If you earned less than $3,000 and have no tax liability, you will not get a stimulus check.
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What happens if I miss the April 15 tax deadline?
Whether you file for a tax extension or not, you can still get your stimulus check later in the year if you file by Oct. 15.
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Is the rebate payment considered taxable income?
No. To learn more, visit http://tinyurl.com/2xytrx.
And make sure you avoid the scam artists. The IRS has identified two popular schemes.
One involves a person calling your home claiming to be from the IRS and saying you are entitled to a large rebate. Then the person asks for your checking account and routing number. Perhaps fearing they will miss out on the money, some people have given out personal information, only to have their bank accounts emptied.
The second scheme involves an e-mail message that appears to come from the IRS. It instructs you to click on link to complete a rebate form that requests personal information. The schemers use that to gain access to your bank account and credit cards.
Remember: The IRS will never make an unsolicited request for your personal information over the phone or through e-mail.
