One more try at the stimulus payments

If I understand the stimulus payment program, the following conditions exist: Single or MFS taxpayer, no children, no tax liability, qualified income greater than $3000: payment is $300. Single or MFS taxpayer, no children, at least $1 tax liability, qualified income less than $8750: payment is zero Single or MFS taxpayer, no children, at least $1 tax liability, qualified income is $8750 or more: payment is $300 to $600 depending on tax liability.

The same three conditions exist for HOH except the qualified income threshhold is $11250. The same three conditions exist for QW except the qualified income threshhold is $14100. The same three conditions exist for MFJ except the qualified income threshhold is $17500 and the payment is $600 to $1200.

Is this correct? If it is, people who have a tax liability and qualified income of more than $3000 but less than the threshholds are really going to be upset.

If the qualified income is more than the threshhold amount, the payment is calculated as follows: Tax liability Payment

1 - 300 300 301 - 599 Tax liability 600 or more 600

MFJ figures:

1 - 600 600 601 - 1199 Tax liability 1200 or more 1200

If all this is correct, you don't need a fancy calculator, you can put the figures in a simple easy-to-read matrix, which I have done. If this is not correct, I do not understand the program and give up trying to understand it.

Ed Durall

Reply to
Ed
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Well, you don't understand. Let's see if we can fix that.

For everyone who meets the AGI limits for a full payment the starting point is 2007 income tax after credits except the child tax credit. That's the sum of lines 57 and 52 on the 2007 1040. Your stimulus payment is that amount, capped at $1200 for joint filers, $600 for all others.

If the general rule doesn't yield at least $600 for joint filers, $300 for all others, you next look at "qualifying income," which is the sum of lines

7, 12 and 20a of the 2007 1040. If that amount is at least $3,000 joint filers get $600, all others $300 even if the general rule yields less.

Tacked onto the base amount is $300 per dependent child listed on the 2007 return who will be under 17 12/31/2008.

For the sake of clarity I've not muddled this with the AGI phaseouts and the requirements for people who wouldn't be otherwise required to file a 2007 return.

Reply to
Phil Marti

There is no AGI requirement nor is there a qualifying income requirement for individuals that have Gross Income in excess of the sum of the basic standard deduction & personal exemption and are left with at least $1 of tax liability excluding the CTC. Under this scenario your qualifying income can be zero and you would still get $300.

Reply to
Alan

I think that the better option is: Don't worry about it until you get it.

Reply to
D. Stussy

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