Tax Help - You Must File for 2007 to Get 2008 Tax Rebate!

William Perez, Tax Advisor for About.com has some great information on the stimulus package and some very valuable links for more detailed information. This is must read information for those who have been thoroughly confused over how the package will work.

President Bush signed into law the Economic Stimulus Act, the legislation that provides taxpayers with a mid-year tax rebate. And the Internal Revenue Service has outlined its plans for how to process and to distribute those rebates.The basic plan is that taxpayers will need to file their 2007 tax returns before they can receive their rebate checks. Even though the rebates are technically for 2008, the IRS will calculate the rebates using income information from the 2007 return.Some people, however, normally don't need to file a tax return because they earn less than the filing requirement. And many retired people living solely on Social Security or veterans' disability pensions usually don't need to file at all since their benefits are non-taxable. This year, however, pensioners and disabled veterans will need to file a return, even if they don't have a dollar of taxable income. The IRS will need individuals to file a return and indicate that they are receiving income that qualifies them for the 2008 tax rebate.

More information about the rebates:

• Basic Overview of the 2008 Tax Rebates
• The Skinny on the Stimulus Plan [from the Wall Street Journal]

Detailed instructions from the IRS:

• Information on Stimulus Package
• Facts about the 2008 Stimulus Payments
• IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate
• Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits
• IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting