Stimulus package demystified

shawndavid

Are you wanting making fuck berserker?
I had questions. This answered them. I hope it helps.


http://www.bargaineering.com/articles/2008-tax-rebate-stimulus-package-explained.html

The latest news is that this has been signed by President Bush, so get your tax returns in and be on the lookout for a check in May or June.

No doubt you’ve heard the “great” news that a deal on a stimulus package has been reached and that (if the Senate drafts a similarly worded bill [a big if!], the two are married, and the President signs it) checks will be in the mail as early as May or June. Whether you believe the naysayers that say we’re really just propping up the Chinese economy (or oil rich nations) because we’re borrowing from them to buy their goods or whether you believe the proponents that say this will boost own economy in magical ways the fact of the matter is a deal has been reached - so what is it? Essentially, it’s a removal of the 10% tax bracket for everyone with some modifications. It includes phaseouts that begin past annual incomes of $75,000 and a component that includes those working Americans that don’t earn enough to pay income taxes.

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To get a clearer understanding of the rules, let’s walk up the income levels and explain how it works; beginning first with those filing their taxes as singles and then adding in families. How the phaseouts work, from what I can understand, is that you first determine eligibility (if you earned more than $3,000 and paid taxes) and then, if you fall in to the phaseout, start reducing your benefit.
Singles

Determine Eligibility:
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $300.
If you earned more than $3,000 and paid taxes, you get $600.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. If you earn above $87k, you’re over and thus get nothing regardless of the math.
Couples

Determine Eligibility (appears to be the same as singles):
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $600.
If you earned more than $3,000 and paid taxes, you get $1,200.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. If you earned above $174k, you’re over and thus get nothing regardless of the math.
Some Common Examples

These are taken from a post by Gridking on Tickerform.org:

* An individual with $2,500 in earned income in 2007: Disqualified because income fell below the $3,000 threshold. No rebate.
* A married couple with no children, with adjusted gross income of $100,000 in 2007: Would qualify for the full $1,200 couples. A $1,200 rebate.
* A worker with one child, who earned $9,000 and owed no taxes in 2007: Would qualify for the $300 rebate available to individuals who pay no taxes but earned at least $3,000, plus an additional $300 for the child. A $600 rebate.
* A couple with income of $145,000 in 2007, with three children: Would qualify for the full $1,200 for couples, plus $300 for each child. A $2,100 rebate.
* A couple with income of $160,000 in 2007 with two children: Would qualify for a partial rebate, reduced by 5 percent for every $1,000 in income above the $150,000 threshold. An $1,800 rebate $1,200 for the couple plus $300 per child — would go down by 50 percent for this family. A $900 rebate.
* A couple with income of $200,000 and four children: Disqualified because their income exceeded $174,000, the phase-out limit. No rebate.

There were a few other salient details to the bill, including a temporary raising of the individual mortgage ceiling that Fannie Mae and Freddie Mac could purchase (FHA loan limits) - increasing it to a whopping $729,750 (up from $417,000), and business tax breaks for infrastructure investments.
Some Questions & Answers

Here are the answers to many of the questions in the comments below, I wanted to wait until the Senate and House agreed on something before trying to tackle these:

Is this a rebate? What is it a rebate on?
The funds are rebate on the taxes you will pay next year, they are a rebate on your 2008 tax return. Rather than give it to you next year, they are giving it to you now. Next year, after you file your taxes, the IRS will calculate what you should’ve gotten and adjust your return. So if you received too much “rebate,” they let you keep it. If you received too little, they decrease what you owe next year.

How do I know what I get?
What you receive in May (or June or July) will be based on the tax return that is due April 15th. It will then be adjusted next year if necessary. So, it is based on your 2007 return, use the math I outlined above or the calculator below to determine what you’ll be getting.
 
yeah I haven't filed in a few years, I'll worry about it once I'm legally property of uncle sam

they'll go easier on me that way
 
I get $600 as long as they don't somehow disqualify me based on non-residency. I'm guessing it's all run through the irs though. They don't know anything about my status.
 
seriously you dont want that shit storm, PUT THE SHOVEL DOWN!!!!!!!

I have to pay eventually, it's far better if I do so voluntarily instead of waiting for them to audit me and it'll be a lot better for me once my paycheck is coming from Uncle Sam.