Stimulus Qualifying income

If qualifying income for the stimulus payment is basically wages (not referring to Soc. security or veteran pmts).

How is stimulus payment calculated when total AGI is used for tax calculation (less cap gain, etc. qualifiers) and the net income tax figure?

For instance. If my income was 15K from wages and 14K from interest, my tax would based on 29k less deductions.

Is this clear?

tks all

billy

Reply to
Billy
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Not really. Your stimulus rebate is NOT based on your taxable income, as long as you have enough "qualifying" income (wages, social security, veterans benefits) to get a payment. The AMOUNT of your payment will be determined by your Net Tax Liability (sum of Line 52 and 57) on your 1040 form.

BTW, the amount of interest income is irrelevant and it is not "qualifying income" for this purpose.

Reply to
Herb Smith

snipped-for-privacy@aol.com (Billy) posted:

As covered in other posts, the important discriminator will be how much tax was due on your return. If line 57, Form 1040, shows a figure of $600 or more ($1200 for MFJ), then your stimulus payment would be $600 (or $1200 MFJ).

If your deductions wiped out your tax liability, for example, then your stimulus payment would be reduced to the minimum $300 ($600 MFJ), _or_ might be posponed and applied to your tax return for 2008.

Bill

Reply to
Bill

OK, simplifying this then, one qualifies for stimulus payment if qualifying income is $3000 or more. However, the amount is determined by adding lines

52 and 57 on 1040 with maximum payouts of $600 and $1200. I was trying to figure the tax on qualifying income alone.

tks

bw

Reply to
Billy

OK, simplifying this then, one qualifies for stimulus payment if qualifying income is $3000 or more. However, the amount is determined by adding lines

52 and 57 on 1040 with maximum payouts of $600 and $1200. I was trying to figure the tax on qualifying income alone.

tks

Reply to
Billy

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