Thursday, June 17, 2010

Do I qualify for stimulus package if I'm self employed & have no tax liability on line 57?

I%26#039;m self employed, married with two kids. Because of %26quot;standard deductions%26quot; and qualifying for earned income credit as well as %26quot;additional child tax credit%26quot; (not the standard child tax credit) - my tax liability on lines 52 %26amp; 57 are set at zero... I%26#039;m certainly over $3,000 but also fall under %26quot;low income wage earner%26quot; via self employed income.



IRS%26#039;s site says %26quot;Families with children under 17 generally will qualify for an additional payment. Some people with no tax liability also will qualify. This includes Social Security and Railroad Retirement beneficiaries, recipients of certain veterans閳?payments, low-income workers with earned income and/or benefits of at least $3,000 and individuals who have combined income of at least $3,000 from any combination of these sources.%26quot;



I get the feeling this thing dependent on a definition of %26quot;low income workers with earned income%26quot;



well anyway - bottom line, does a Self Employed worker with no tax liability that got the EIC qualify for the stimulus?



Do I qualify for stimulus package if I%26#039;m self employed %26amp; have no tax liability on line 57?

Yes, if your net self-employed income is $3000 or more.



According to the IRS:



Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income includes net self-employment income.



Do I qualify for stimulus package if I%26#039;m self employed %26amp; have no tax liability on line 57?

Individuals who paid no income taxes but earned at least $3,000, or received at least $3,000 in Social Security, railroad retirement, or disabled veterans%26#039; benefits in 2007 will be eligible for a $300 rebate (payment) if they file a tax return. In other words, to receive the $300 tax rebate in 2008 you MUST file a 2007 tax return.



For those who qualify, the plan calls for tax rebates (payments) worth up to $600 for individuals with an Adjusted Gross Income (AGI) of up to $75,000 and $1200 for couples filing joint returns with an AGI of up to $150,000. An additional rebate (payment) is available for families of $300 per qualifying child.



Tax rebates are reduced by five percent for each $1,000 of AGI over $75,000 for individuals and $150,000 for joint returns. For taxpayers without children, the maximum payment is fully phased out at $87,000 and at $174,000 for joint filers. In other words, if you%26#039;re an individual with an AGI of $87,000 and above or a joint filer with an AGI of $174,000 and above, you are not eligible for the tax rebate.



For more information on the Tax Rebate, you can visit www.digits.hrblock.com/esp.

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