IRS Package 1040A-3 - www.irs.gov/pub/irs-pdf/k1040a3.pd

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Economic Stimulus Act of 2008
Helping Qualified Individuals Receive Their
Economic Stimulus Payments
National Affordable Housing Preservation
Associates Webinar April 24, 2008
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Economic Stimulus Payments

• What Is The Economic Stimulus Act?
• Congress passed the President signed the
  Economic Stimulus Act in January 2008
• 130 Million American Households will Receive
  Economic Stimulus Payments Beginning May 2008
  Continuing through 2008

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Economic Stimulus Payments

• Who is Eligible for an Economic
  
  Stimulus Payment?
• Individuals with a Valid Social Security Number
• Individuals who File a 2007 Individual Tax
  Return with
• a Net Tax Liability, or
• at Least 3,000 of Earned Income and/or
  Qualifying Income

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Economic Stimulus Payments

• Who is Eligible for an Economic Stimulus
  Payment?
• Must Not be Claimed as a Dependent on Someones
  Else Tax Return in 2007
• The Economic Stimulus Payment for Taxpayers with
  Income in Excess of 75,000 (Single Taxpayers)
  150,000 (Married Filing Joint Taxpayers) is
  Subject to Phase-out

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Economic Stimulus Payments

• What is Qualifying Income?
• Earned Income (Wages or Net Self Employment
  Income)
• Earned Income Does Not Include Dividends,
  Interest, Capital Gains or Other Passive Income
  Sources (Such as Rental Properties)

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Economic Stimulus Payments

• What is Qualifying Income? (Cont)
• Social Security Benefits Reported on Form
  1099-SSA
• Supplemental Security Income (SSI) is Not
  Qualifying Income
• Railroad Retirement Benefits Reported on Form
  1099-RBB

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Economic Stimulus Payments

• What is Qualifying Income? (Cont)
• Veterans Disability Compensation, Pension or
  Survivors Benefits Received from the Department
  of Veterans Affairs (VA)

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Economic Stimulus Payments

• How Much are the Economic Stimulus Payments?
• Minimum of 300 (600 For Married Filing
  Jointly) with a Net Tax Liability or Qualifying
  Income of at Least 3,000
• Maximum of 600 (1,200 For Married Filing
  Jointly)
• Additional 300 for Each Qualifying Child

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Economic Stimulus Payments

• Who is a Qualifying Child?
• A Child who is Under Age 17 as of December 31,
  2007
• A Child with a Valid Social Security Number
• A Child who cannot be Claimed as a Dependent on
  Another Tax Return
• A Child who meets the Eligibility for the Child
  Tax Credit

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Economic Stimulus Payments

• How Does an Individual Receive an Economic
  Stimulus Payment?
• File a 2007 Tax Return by the Due Date of
  October 15, 2008
• The IRS will make the Determination of the Exact
  Amount of Economic Stimulus Payment from the 2007
  Tax Return Filed

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Economic Stimulus Payments

• What If an Individual Does Not Have a Tax Filing
  Requirement?
• Some Individuals do not have a Legal Filing
  Requirement
• Have Income which is not Taxable (Social
  Security Or VA Benefits)
• Have Taxable Income that Results in No Tax
  Liability (Less than Standard Deduction And
  Exemption Amounts)

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Economic Stimulus Payments

• What If an Individual Does Not Have a Tax Filing
  Requirement?
• Regardless of an Individuals Legal Filing
  Requirement for 2007 or any year, in order to
  Receive an Economic Stimulus Payment they must
  File a 2007 Tax Return. Includes
• Social Security Recipients
• Railroad Retirement Recipients
• VA Benefit Recipients

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Economic Stimulus Payments

• What If an Individual Does Not Have a Tax
  Filing Requirement? Is there a Simplified Method
  for Filing in 2007?
• For Individuals with Qualifying Income for an
  Economic Stimulus Payment and No Other Filing
  Requirements, they may file a Form 1040A With
  Minimal Entries For 2007

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Economic Stimulus Payments

• Impact on other Federal Benefits
• Receipt of an Economic Stimulus Payment will Not
  affect the Eligibility or Amount of Needs Based
  Federal Benefit Programs (I.E. Food Stamps,
  Medicaid, Etc.)
• Will Not Count as Income in Month Received
• Will Only be Considered as a Resource 60 Days
  after the Month it was Received

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Economic Stimulus Payments

• Impact on 2008 Federal Tax Return
• Stimulus Payments are Not Taxable
• Taxpayers will Not Owe Tax on their Stimulus
  Payment in 2008
• Stimulus Payments will Not Reduce or Increase a
  Taxpayers Refund in 2008
• Individuals who do Not Qualify for an Economic
  Stimulus Payment based on their 2007 Return May
  Qualify for a Special Benefit on their 2008 Return

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Economic Stimulus Payments

• Economic Stimulus Payments Federal Tax Offsets
• Economic Stimulus Payments are Subject to Offset
  for Outstanding Tax and Non-tax Liabilities in
  the Same Fashion as Regular Tax Refunds
• If an Offset Occurs, Taxpayer will Receive a
  Letter explaining how the Stimulus Payment was
  Applied

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Economic Stimulus Payments

• Economic Stimulus Payments
• Economic Stimulus Payments will be Direct
  Deposited if Taxpayer requested Direct Deposit on
  their 2007 Tax Return
• Economic Stimulus Payments will be Mailed to
  Taxpayers who
• Requested a Split Refund
• Requested a Refund Anticipation Loan

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Economic Stimulus Payments

• Economic Stimulus Notices
• IRS will send Notice to all Taxpayers who filed
  a 2006 Tax Return in Early March informing them
  about the Economic Stimulus Payments
• IRS will send a Special Notice in Late March
  (including an Information Guide, Form 1040A,
  Mailing Envelope) to SSA, RRB VA Beneficiaries
  who did not File a 2006 Tax Return

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Economic Stimulus Payments

• Economic Stimulus Notices
• Each Recipient of an Economic Stimulus Payment
  will Receive a Second Notice from IRS around the
  Time of the Economic Stimulus Payment informing
  them of the Amount of the Economic Stimulus they
  will be Receiving

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Economic Stimulus Payments

• Economic Stimulus Notices Scams
• Please be aware of potential scams
• The IRS will not
• Go Door-to- Door
• Make Outbound Phone Calls
• Send e-mails
• Will never ask for credit card information

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Economic Stimulus Payments

• Economic Stimulus Payment Dates
• Payments will Start in May will Continue
  throughout the Summer based on a soon to be
  released Schedule
• Initial Schedule will be based on the Last Two
  Digits of Taxpayers Social Security Number
• By Law, Final Payments Must Be Made by December
  31, 2008

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Economic Stimulus Payments

• Economic Stimulus Payment Dates
• For Returns Filed By April 15, 2008
• Direct Deposits will start the week of May 2nd
  and be completed by the week of May 16th
• Paper checks will start the week of May 16th and
  completed by week of July 11th
• For Returns Filed After April 15th, ESP willed
  about two weeks after their refund but not before
  July 11th

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Economic Stimulus Payments

• Economic Stimulus Amended Returns
• If a Taxpayer has already filed their 2007 Tax
  Return did not include 3,000 of Qualifying
  Income because they did not include the
  Non-taxable Income such as SSA/VA Benefits, that
  Taxpayer will need to file an Amended Return,
  Form 1040X, to Report the additional Qualifying
  Income.

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Economic Stimulus Payments

• Economic Stimulus Filing Dates
• Initial Payment Schedule will impact returns
  Filed by April 15th
• Filing Deadline for 2007 Tax Returns is October
  15, 2008

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Economic Stimulus Payments

• How Can You Help
• Provide educational information to your
  residents
• Provide access to forms necessary to file for an
  ESP payment (Form 1040A, IRS Package 1040A3)
• Hold ESP Filing Seminars at Your Properties
  Where Assistance Could Be Provided to Potential
  ESP Recipients

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Economic Stimulus Payments

• How Can You Help ESP Filing Seminars
• Most Potential ESP Recipients Who Have Not Filed
  to Date Need Face-to-Face Assistance
• Fear/Confusion Regarding Taxes
• Lack of Understanding of What is Required

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Economic Stimulus Payments

• How Can You Help ESP Filing Seminars
• Plan Workshops in Your Facilities
• Provide Direct Assistance (Facilities Manager
  Volunteers Who Will Help Complete the Return)
• Self-Help Assistance (Volunteer Helps a Group of
  Individuals File Returns as Same Time)

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Economic Stimulus Payments

• How Can You Help ESP Filing Seminars
• Minimal Training Required to Prepare Simple ESP
  Returns
• IRS Publication 4665 - www.irs.gov/pub/irs-pdf/p4
  665.pdf
• IRS Package 1040A-3 - www.irs.gov/pub/irs-pdf/k10
  40a3.pdf
• NCOA/AARP Online Tool www.stimulus2008.benefits
  checkup.org/espp/welcome

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Economic Stimulus Payments

• How Does an Individual File a Simple Form 1040A
  to Qualify for an Economic Stimulus Payment on a
  Paper Return?
• Secure an IRS Form 1040A
• Write ECONOMIC STIMULUS Across the Top of the
  Form 1040A
• Write in Taxpayers Name, Address and Social
  Security Number in the Appropriate Boxes

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Economic Stimulus Payments

• How Does an Individual File a Simple Form 1040A
  to Qualify for an Economic Stimulus Payment on a
  Paper Return? (Cont)
• Check the Filing Status that Applies to the
  Taxpayer
• Input Taxpayers Earned Income (Wages Net Self
  Employment Income Less Than 400) on Line 7

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Economic Stimulus Payments

• How Does an Individual File a Simple Form 1040A
  to Qualify for an Economic Stimulus Payment on a
  Paper Return? (Cont)
• Input Taxpayers Social Security (Form
  SSA-1099), Tier 1 Railroad Retirement (Form
  1099-RBB), and/or Veterans Disability /or Death
  Benefits on Line 14a
• If Exact Amount is Not Known, Use Estimate Based
  on Monthly Benefit

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Economic Stimulus Payments

• How Does an Individual File a Simple Form 1040A
  to Qualify for an Economic Stimulus Payment on a
  Paper Return? (Cont)
• Input Amount of Non-taxable Combat Pay on Line
  40b
• For Taxpayers Wanting Direct Deposit, need to
  Complete Lines 44b through 44d with Bank
  Information
• Sign Return and Mail to IRS

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Economic Stimulus Payments

• Economic Stimulus Information Marketing
  Materials
• For Latest Information, please visit the
  Official IRS Website at www.irs.gov to view up
  to the minute Frequently Asked Questions Section.
• From irs.gov Economic Stimulus Information
  Center, click on the Link to Marketing Products
  For Partners to Locate Various Marketing
  Outreach Tools

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Economic Stimulus Payments

• Economic Stimulus Information Marketing
  Materials
• Key Materials Available
• One Page Flyers for SSA, VA, RRB Low-income
  Recipients
• Sample 1040A
• Envelope Stuffers
• Radio Public Service Announcements

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Economic Stimulus Payments
For More Information on Economic Stimulus
Payments, Please Visit www.irs.gov Click on
Rebate Questions on the Home Page or Call IRS
Hotline at 1-866-234-2942