Florida Consumer E-Newsletter
March 2008
Charles H. Bronson
Commissioner
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A Message from the Commissioner
Dear Friends:
On February 13, 2008, President George W. Bush signed the “Recovery Rebates and Economic Stimulus for the American People Act of 2008” (H.R. 5140) into law. In an extraordinary display of bipartisanship, Congress and the president were able to formulate a plan whereby 130 million American households will be eligible for a one-time stimulus payment which could begin arriving as early as May. The legislation will also inject money into the economy by providing businesses with a series of tax breaks designed to encourage owners to expand by investing in new equipment and it will increase the number of loans that FHA, Fannie Mae, and Freddie Mac are allowed to buy up or insure.
The American economy has shown serious signs of a looming recession. The Federal Reserve has cut interest rates five times in the past seven months and will likely continue these cuts after the Labor Department announced that the net loss of 63,000 jobs in February was the biggest decline since March of 2003. With such alarming statistics being announced on an almost daily basis, stimulus payments of up to $600 for individual taxpayers and $1,200 for married couples, plus $300 for dependent children, could go a long way toward boosting consumer spending and energizing a lagging economy.
In an effort to better educate Florida’s consumers on the details of this new law, we have included some of the pertinent information in this edition of our E-Newsletter. Remember, we’re here for you. Our Consumer Hotline, calling within Florida 1-800-HELP-FLA (435-7352), outside of Florida 850-488-2221 or en Español 1-800-FL-AYUDA (352-9832), will answer any consumer related questions you may have or direct you to the best resource for assistance.You can also visit us online at www.800helpfla.com for additional consumer information.
Sincerely,
Earlier this month the Internal Revenue Service began sending out letters to more than 130 million American households reminding them to file a 2007 tax return in order to receive a 2008 economic stimulus payment. The information below will help to answer questions you may have concerning the stimulus payment.
What is it
It is a one-time payment to be given to millions of low and middle-income Americans, including senior citizens and disabled veterans. The payment is non-taxable next year and will not affect the amount of VA or SSA benefits you receive.
Am I Eligible, and How Do I Get It
You are eligible if you have a valid Social Security number (cannot use an Individual Taxpayer Identification Number) and show qualifying income of $3,000 on your federal tax return. If you meet these criteria, simply file a federal tax return for 2007, even if you normally don't because your income usually doesn't meet the filing threshold. If you do not file a return, you will not get a payment! Remember, if you are only filing a tax return to receive your stimulus payment, you should write the words “STIMULUS PAYMENT” on the top of your form before mailing. The payments to taxpayers will be made starting May 2008.
What Constitutes “Qualifying Income”
Qualifying income is any one of the following, or a combination:
- Earned income (wages, self employment, nontaxable combat zone pay, etc.);
- Social security retirement, disability and survivor’s benefits (Supplemental Security
- Income or SSI does not qualify for the rebate);
- Veterans retirement, disability, and survivor’s benefits paid by the Department of Veterans Affairs; and
- Railroad Retirement Tier 1Benefits
How Much Will I Get and How Will I Get It
The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the “Child Tax Credit” and have a valid Social Security number. If you would like the payment automatically deposited into your bank account, you should choose direct deposit when you file your tax return (even if you are not due a regular tax refund) otherwise you will be mailed a check to the address on your return.
Is There a Deadline
Yes, you must file your federal tax return with the Internal Revenue Service by October 15, 2008. By law, the IRS cannot issue any economic stimulus payment checks or direct deposits after December 31, 2008. For more information about the deadlines and other rebates that you may qualify for, visit www.irs.gov or contact the IRS via telephone at 1-800-829-1040.
Protect Yourself from Fraud
Be aware that identity thieves are already pushing scams involving the stimulus payments. At least one telephone scam is making the rounds using the proposed rebates as bait. For more information about this and other tax scams visit the IRS website at www.irs.gov. Remember that for the genuine IRS website be sure to use .gov. Don’t be confused by internet sites that end in .com, .net, .org or other designations.
For all the full requirements, frequently asked questions, information about free tax preparation assistance, or any additional questions, visit www.irs.gov or contact the IRS via telephone at 1-800-829-1040.
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
Florida Department of Agriculture and Consumer Services
A new twist to an old phishing scam is currently being reported in numerous cities across the nation. Scammers are taking advantage of the recently approved federal economic stimulus package to lure unsuspecting consumers into revealing their personal data. Learn more...
Internal Revenue Service
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. Learn more...
