Tell Granny
The federal government will be handing out free money to all but the richest of us in a few months -- the so-called "stimulus payments" that are supposed to restore our confidence in the economy and get us spending money again. For most folks, the check will come to several hundred dollars, which I'm sure the oil companies will gobble up by Fourth of July as gas prices hit $4 a gallon. Congress should have decided just to send the money to Exxon directly.
Anyway, in order to get the money, it appears that you have to file a federal 2007 tax return. And a lot of people who are eligible to get the checks aren't otherwise required to file a return because they don't make enough taxable income to warrant filing.
Those folks will want to file a return for 2007 sometime soon, in order to be sure they get their "stimulus" money in May or June. For example, an elderly person who lives solely off Social Security benefits doesn't usually have to file a tax return, but this year he or she will want to, just to get a "stimulus" check of $300.
The IRS announced yesterday that people with no taxable income can even file their returns for this purpose electronically, entering $1 as their adjusted gross income. Apparently, the IRS computers won't take zero income as a valid entry.
Leaving aside what dubious fiscal policy this gimmick is, something tells me it is going to be a confusing mess before it's all over.
| Posted at 1:55 AM | Permalink |
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Comments (12)
of course its going to be a crazy mess! It involves the government and the IRS...need I say more?
Posted by gas additive | March 4, 2008 6:29 AM
What about minor dependent children? Can they file and get stimulated?
Posted by Allan L. | March 4, 2008 6:56 AM
Of course it doesn't HAVE to involve the government...this may be every bit as screwed up as the TurboTax "Please Keep My Oregon Kicker" software problem.
Posted by PMG | March 4, 2008 7:07 AM
Don't make a fuss, get out there and Stimulate!
Its simple, a no interest and no payment for 90 days, Best Buy credit card will give you that new 72" flat panel TV with surround sound package today.
Don't forget to get permission from your apartment manager before drilling holes in the bedroom wall.
Oh, excuse me. How do you like it?
Posted by Abe | March 4, 2008 7:20 AM
Do you want fries with that?
Posted by Brothers | March 4, 2008 7:37 AM
It's actually pretty straightforward -- the explanations are more complicated than the form. I've already helped two people who only have Social Security income (which normally means you don't call it income for tax purposes and don't have to file).
Just as a side note, people who have no income of any kind will not get a stimulus payment. So it's the very richest and the very poorest who are being left out.
Posted by bbc | March 4, 2008 8:21 AM
Er... "very richest" is kind of misleading. Single people with $87K income or more are completely cut out of the loop, for example.
That's a comfortable salary, to be sure, and they (er, we) don't really need $600 (any more than a single person making $75K does).
But we're also not exactly what I'd call the "very richest" in the country. It's not like we're partying with Paris or anything. Most of us are just trying to pay our bills like everyone else -- and our bills are sometimes a little higher than most. Higher incomes don't always translate to higher wealth.
I'm not looking for (and certainly not expecting any) sympathy here. It'd just be nice once in a while not to be cast in with "those rich people" upon whom scorn is so readily heaped.
Posted by David Wright | March 4, 2008 9:51 AM
David,
I agree with you about that "richest" category. All I was pointing out was that, in addition to the "richest of us" mentioned in Jack's original post, the people who have no income at all are completely left out.
Posted by bbc | March 4, 2008 10:10 AM
I'll take this funny money. If the economy recovers as it usually does with these extra dollars, paying back debt like PDX governments' should become easier. As for oil companies, they will benefit but mostly it will be the nationally state owned oil outfits like those of the OPEC members and Russia. The big western world oil companies only own about 20% of the world's oil reserves anymore (per Wall Street Journal, yesterday I think it was). Their refining margins should be down this year relative to last year as the cost of crude is up more than gasoline price. If the oil companies don't still make good profit, it might not be such a good thing as it could reflect a significant worldwide recession.
Posted by Bob Clark | March 4, 2008 10:51 AM
What about minor dependent children? Can they file and get stimulated?
No.
Posted by Jack Bog | March 4, 2008 12:05 PM
Welfare recipients are required to report all income no matter where it comes from. This money is then deducted from the benefits such as food stamps and SSI. Also, Oregon Health Plan premiums are set according to this income. The government giveth and the government taketh away!
Posted by Wes Soderbqck | March 4, 2008 3:59 PM
Free money! Free money! Free money!
Wait. This is really an early refund of a tax credit on your 2008 taxes calculated based on your 2007 tax figures. Cynical thought: is the current administration robbing the next administration for an election year boost? Yes? Yes! Crap.
So I'm going to get my $300 bucks; I'll patriotically (?) spend it on foreign oil and imported goods. Then, come 2008, I'll need a reminder why there's no money for federally funded programs, like VA hospitals, assistance and social security. Will Prez Bush be there for that? No. If McCain is President, will he accept responsibility as the new leader of the party? Doubtful, even if this crooked credit helps the Grand Ol' Party.
Free money? Or are we just robbing ourselves?
Posted by Chris Coyle | March 4, 2008 8:01 PM