Summer's Shenanigans

The government is giving away free money! The IRS will give you up to $600 if you file your 2007 taxes this year. Here is the letter I just received from the IRS:

"Dear Taxpayer:
We are pleased to inform you that the United States Congress passed and President George W. Bush signed into law the Economic Stimulus Act of 2008, which provides for economic stimulus payments to be made to over 130 million American households. Under this new law, you may be entitled to a payment of up to $600 ($1,200 if filing a joint return), plus additional amounts for each qualifying child.

We are sending you this notice to let you know that based on this new law the IRS will begin sending one-time payments starting in May. To receive a payment in 2008, individuals who qualify will not have to do anything more then file a 2007 tax return. The IRS will determine eligibility, figure the amount, and send the payment. This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment.

For individuals who normally do not have to file a tax return, the new law provides for payments to individuals who have a total of $3000 or more in earned income, social security benefits and/or certain veterans' payments. Those individuals should file a tax return for 2007 to receive a payment in 2008.

Individuals who qualify may receive as much as $600 ($1,200 if married filing jointly). Even if you pay no income tax but have a total of $3000 or more in earned income, Social Security benefits, and or certain veterans' payments, you may receive a payment of $300 ($600 if married filing jointly).

In addition, individuals eligible for payments may also receive an additional amount of $300 for each child qualifying for the child tax credit.

For taxpayers with adjusted gross income (AGI) of more than $75,000 (or more then $150,000 if married filing jointly), the payment will be reduced of phased out completely.

To qualify for the payment, an individual, spouse, and any qualifying child must have a valid Social Security number. In addition, individuals can not receive a payment if they can be claimed as a dependent of another taxpayer or they filed a 2007 Form 1040NR, 1040NR-EZ, 1040-PR or 1040-SS.

All individuals receiving payments will receive a notice and additional information shortly before the payment is made. In the meantime, for additional information, please visit the IRS website at www.irs.gov."

While that is all fine and dandy, why is the government excluding people that make over $75,000? They are the ones that paid the MOST in taxes, which is what is funding this government giveaway...

Labels: Money, Taxes