Tips for Tax Filers on Economic Stimulus Payments

Tips for Tax Filers on Economic Stimulus Payments

NEW ORLEANS — The Internal Revenue Service today urged taxpayers eligible for the economic stimulus payment to file their tax return now in order to get their payment in a timely manner.  This IRS reminder applies to taxpayers yet to file their 2007 income tax returns as well as retirees, disabled veterans, low-wage workers and others who normally are not required to file a return but who must do so this year to receive an economic stimulus payment.  “The quickest way to receive your refund and your economic stimulus payment is to file early, file electronically and use direct deposit,” said IRS Commissioner Doug Shulman.

Starting in May, the IRS will begin sending economic stimulus payments of up to $600 ($1,200 for married couples) to people who earn less than $75,000 ($150,000 for married couples). There is also is an additional payment of $300 for each eligible child younger than 17.

People who have no tax filing requirement may still be eligible to receive a payment of $300 ($600 for married couples) if they have at least $3,000 in qualifying income. Qualifying income includes any combination of earned income, nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement.  Individuals in this category may also be eligible for the additional $300 payment for each qualifying child.

The IRS offers these tax tips for taxpayers:

· File now:  Don’t wait until the 11th hour on April 15 if you want your stimulus payment on time. Your tax return must be processed by April 15 for you to receive your payment according to the payment schedule. Filing a paper return? Write ‘Stimulus Payment’ at the top of your form ONLY if you do not normally file a tax return and are filing just to receive a stimulus payment.

· Use Free File: IRS Free File is a public-private partnership with 19 tax software companies that make their tax preparation software and electronic filing available for free to certain taxpayers. Anyone with an adjusted gross income of $54,000 or less, and that’s 97 million taxpayers, is eligible to use Free File, available only through http://www.irs.gov.

· Use IRS e-file: If you don’t qualify for IRS Free File, you should still file your tax return electronically. Taxpayers can use IRS e-file through paid preparers or over-the-counter software. It’s the fastest way to process your tax return, which means it’s the quickest way for you to receive your refund and your economic stimulus payment.

· Use direct deposit: It’s the best way to receive your refund and your economic stimulus payment. Even if you owe taxes, complete the blanks for direct deposit and, if you are eligible, the IRS will transmit your stimulus payment electronically. The IRS will begin making stimulus payments into direct deposit accounts on May 2. The agency will mail paper checks starting May 16.

· Need more time: If you can’t make the April 15 deadline, remember to file a Form 4868, the automatic extension of time to file. This will give you until October 15 to submit a 2007 tax return.  People filing only to receive the economic stimulus payment do not have to file by April 15 and they do not have to file a Form 4868 for an extension.  However, they do need to file Form 1040A by October 15 to receive the payment in 2008.

· Avoid Scams: If you receive unsolicited email or telephone calls from anyone purporting to be from the IRS, it’s probably a scam. Don’t click on any links; don’t answer any questions. Forward the emails or report the calls to .