Rebate causes confusion
The Economic Stimulus Act of 2008 was designed to grant rebates.
March 11, 2008
An MU news release stated students shouldn’t get their hopes up about receiving a rebate from the Economic Stimulus Act of 2008.
The act, which was signed last month, will grant U.S. citizens a rebate ranging from $300 to $600 for those who file individually and up to $1,200 for couples who file joint.
In order to be eligible for the rebate, citizens must have an annual salary between $3,000 and $75,000.
They must also file federal tax returns and owe no federal debt.
Missouri Taxpayer Education Initiative director Andrew Zumwalt said there was confusion when the act was first proposed as to whether filling out a federal tax return would be required.
“There was some confusion about the Social Security Administration, and if people that receive social security would have to report that income,” he said.
Zumwalt said the option was confused with the possibility of the Internal Revenue Source simply working with the SSA to determine who was eligible.
“That was a rumor,” he said. “In order to receive the Economic Stimulus Payment, you must file a 2007 tax return.”
Zumwalt said it is also essential for those filing to have a social security card.
“If you don’t make enough money, you won’t get the rebate,” he said. “You also have to have a social security number.”
Zumwalt said he does not believe many students will be eligible for the rebate. The act states that citizens who are over 17 but are still claimed by their parents will not be eligible.
“It is not likely,” Zumwalt said. “A large portion of MU students are claimed by their parents, so the students have to file their returns without claiming themselves. You have to claim yourself to be eligible.”
Some states may tax the rebate, but Zumwalt said the federal government and the Missouri government will not be those who are taxing.
Zumwalt said there will be more than one chance at receiving the rebate.
“You get two chances at this money,” Zumwalt said. “To get the money in 2008, you would have to file a 2007 tax return. However, if you only get minimum basic rebate amount of $300, you can get the rest of your money in 2009 on your 2008 tax return.”
Zumwalt said to receive a stimulus payment this year, a return must be sent before Oct. 15.
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