COMMUNITY MATTERS
		What You Need to Know About the Economic Stimulus Act Payments

Some economists are saying the U.S. is in a “fearsession” rather than a recession. I’m not an economist so I don’t know, but wouldn’t it be nice if the Economic Stimulus Act of 2008 could help individuals build wealth, while easing some fears and adding a little stability to our volatile economy?

Starting in May and extending for several weeks into the spring and summer, some 130 million American households will receive one-time economic stimulus checks ranging from $300 to $1,200 plus additional amounts for each qualifying child. A payment schedule is available at the Internal Revenue Service website, www.irs.gov.

To be eligible for a stimulus payment all that is necessary is to file a 2007 tax return. The IRS will use information on the 2007 tax return to determine eligibility and calculate the amount of the stimulus payment to be received. The key point here is to file a 2007 tax return. Even individuals that normally wouldn’t have a need to file must do so. For example, people who receive wages or self-employment below a certain amount are generally not required to file a tax return. However, the economic stimulus law contains a special provision allowing low-wage workers with at least $3,000 in qualified income to qualify for the stimulus payment, if they file a tax return.

Basic Eligibility Requirements

The stimulus act has established the following basic eligibility requirements:

• Individuals or families must have at least $3,000 in qualifying income, which can be income from or in combination with Social Security benefits, Veterans Affairs benefits, Railroad Retirement benefits and earned income.
• People must have valid Social Security Numbers.
• People cannot be claimed as dependents or be eligible to be claimed as dependents on another's tax return.
• People must file a 2007 tax form, i.e. Form 1040A.

Individuals with bank accounts can have their stimulus payments direct deposited into their accounts. However, the IRS says it cannot, by law, issue any economic stimulus payment checks or direct deposits after Dec. 31, 2008. Consequently, tax forms (simple or otherwise) must be filed with enough time left in the calendar year for the IRS to process them and issue the economic stimulus payments before the end of the calendar year.

Please read the Impact Matters article in this newsletter for more specific information regarding the stimulus payments and our suggestions for how to get tax help and use your stimulus payment wisely.

Deborah S. Bayle
President and CEO