1. 1 Economic Stimulus Act of 2008 Helping Qualified Individuals Receive Their Economic Stimulus Payments National Affordable Housing Preservation Associates Webinar April 24, 2008

2. 2 Economic Stimulus Payments  What Is The Economic Stimulus Act? Congress passed & the President signed the Economic Stimulus Act in January 2008 130 Million American Households will Receive Economic Stimulus Payments Beginning May 2008 & Continuing through 2008

3. 3 Economic Stimulus Payments  Who is Eligible for an Economic Stimulus Payment? Individuals with a Valid Social Security Number Individuals who File a 2007 Individual Tax Return with:  a Net Tax Liability, or  at Least $3,000 of Earned Income and/or Qualifying Income

4. 4 Economic Stimulus Payments  Who is Eligible for an Economic Stimulus Payment? Must Not be Claimed as a Dependent on Someone’s Else Tax Return in 2007 The Economic Stimulus Payment for Taxpayers with Income in Excess of $75,000 (Single Taxpayers) & $150,000 (Married Filing Joint Taxpayers) is Subject to Phase-out

5. 5 Economic Stimulus Payments  What is Qualifying Income? Earned Income (Wages or Net Self Employment Income) Earned Income Does Not Include Dividends, Interest, Capital Gains or Other Passive Income Sources (Such as Rental Properties)

6. 6 Economic Stimulus Payments  What is Qualifying Income? (Con’t) Social Security Benefits Reported on Form 1099-SSA  Supplemental Security Income (SSI) is Not Qualifying Income Railroad Retirement Benefits Reported on Form 1099-RBB

7. 7 Economic Stimulus Payments  What is Qualifying Income? (Con’t) Veteran’s Disability Compensation, Pension or Survivor’s Benefits Received from the Department of Veterans’ Affairs (VA)

8. 8 Economic Stimulus Payments  How Much are the Economic Stimulus Payments? Minimum of $300 ($600 For Married Filing Jointly) with a Net Tax Liability or Qualifying Income of at Least $3,000 Maximum of $600 ($1,200 For Married Filing Jointly) Additional $300 for Each Qualifying Child

9. 9 Economic Stimulus Payments  Who is a Qualifying Child? A Child who is Under Age 17 as of December 31, 2007 A Child with a Valid Social Security Number A Child who cannot be Claimed as a Dependent on Another Tax Return A Child who meets the Eligibility for the Child Tax Credit

10. 10 Economic Stimulus Payments  How Does an Individual Receive an Economic Stimulus Payment? File a 2007 Tax Return by the Due Date of October 15, 2008 The IRS will make the Determination of the Exact Amount of Economic Stimulus Payment from the 2007 Tax Return Filed

11. 11 Economic Stimulus Payments  What If an Individual Does Not Have a Tax Filing Requirement? Some Individuals do not have a Legal Filing Requirement  Have Income which is not Taxable (Social Security Or VA Benefits)  Have Taxable Income that Results in No Tax Liability (Less than Standard Deduction And Exemption Amounts)

12. 12 Economic Stimulus Payments  What If an Individual Does Not Have a Tax Filing Requirement? Regardless of an Individual’s Legal Filing Requirement for 2007 or any year, in order to Receive an Economic Stimulus Payment they must File a 2007 Tax Return. Includes:  Social Security Recipients  Railroad Retirement Recipients  VA Benefit Recipients

13. 13 Economic Stimulus Payments  What If an Individual Does Not Have a Tax Filing Requirement? Is there a Simplified Method for Filing in 2007? For Individuals with Qualifying Income for an Economic Stimulus Payment and No Other Filing Requirements, they may file a Form 1040A With Minimal Entries For 2007

14. 14 Economic Stimulus Payments  Impact on other Federal Benefits Receipt of an Economic Stimulus Payment will Not affect the Eligibility or Amount of Needs Based Federal Benefit Programs (I.E. Food Stamps, Medicaid, Etc.) Will Not Count as Income in Month Received Will Only be Considered as a Resource 60 Days after the Month it was Received

15. 15 Economic Stimulus Payments  Impact on 2008 Federal Tax Return Stimulus Payments are Not Taxable Taxpayers will Not Owe Tax on their Stimulus Payment in 2008 Stimulus Payments will Not Reduce or Increase a Taxpayer’s Refund in 2008 Individuals who do Not Qualify for an Economic Stimulus Payment based on their 2007 Return May Qualify for a Special Benefit on their 2008 Return

16. 16 Economic Stimulus Payments  Economic Stimulus Payments Federal Tax Offsets Economic Stimulus Payments are Subject to Offset for Outstanding Tax and Non-tax Liabilities in the Same Fashion as Regular Tax Refunds If an Offset Occurs, Taxpayer will Receive a Letter explaining how the Stimulus Payment was Applied

17. 17 Economic Stimulus Payments  Economic Stimulus Payments Economic Stimulus Payments will be Direct Deposited if Taxpayer requested Direct Deposit on their 2007 Tax Return Economic Stimulus Payments will be Mailed to Taxpayers who:  Requested a Split Refund  Requested a Refund Anticipation Loan

18. 18 Economic Stimulus Payments  Economic Stimulus Notices IRS will send Notice to all Taxpayers who filed a 2006 Tax Return in Early March informing them about the Economic Stimulus Payments IRS will send a Special Notice in Late March (including an Information Guide, Form 1040A, Mailing Envelope) to SSA, RRB & VA Beneficiaries who did not File a 2006 Tax Return

19. 19 Economic Stimulus Payments  Economic Stimulus Notices Each Recipient of an Economic Stimulus Payment will Receive a Second Notice from IRS around the Time of the Economic Stimulus Payment informing them of the Amount of the Economic Stimulus they will be Receiving

20. 20 Economic Stimulus Payments  Economic Stimulus Notices & Scams Please be aware of potential scams The IRS will not: Go Door-to- Door Make Outbound Phone Calls Send e-mails Will never ask for credit card information

21. 21 Economic Stimulus Payments  Economic Stimulus Payment Dates Payments will Start in May & will Continue throughout the Summer based on a soon to be released Schedule Initial Schedule will be based on the Last Two Digits of Taxpayer’s Social Security Number By Law, Final Payments Must Be Made by December 31, 2008

22. 22 Economic Stimulus Payments  Economic Stimulus Payment Dates For Returns Filed By April 15, 2008 Direct Deposits will start the week of May 2 nd and be completed by the week of May 16 th Paper checks will start the week of May 16 th and completed by week of July 11 th For Returns Filed After April 15 th, ESP willed about two weeks after their refund but not before July 11th

23. 23 Economic Stimulus Payments  Economic Stimulus & Amended Returns If a Taxpayer has already filed their 2007 Tax Return & did not include $3,000 of Qualifying Income because they did not include the Non-taxable Income such as SSA/VA Benefits, that Taxpayer will need to file an Amended Return, Form 1040X, to Report the additional Qualifying Income.

24. 24 Economic Stimulus Payments  Economic Stimulus Filing Dates Initial Payment Schedule will impact returns Filed by April 15 th Filing Deadline for 2007 Tax Returns is October 15, 2008

25. 25 Economic Stimulus Payments  How Can You Help Provide educational information to your residents Provide access to forms necessary to file for an ESP payment (Form 1040A, IRS Package 1040A3) Hold “ESP Filing Seminars” at Your Properties Where Assistance Could Be Provided to Potential ESP Recipients

26. 26 Economic Stimulus Payments  How Can You Help – “ESP Filing Seminars” Most Potential ESP Recipients Who Have Not Filed to Date Need Face-to- Face Assistance Fear/Confusion Regarding Taxes Lack of Understanding of What is Required

27. 27 Economic Stimulus Payments  How Can You Help – “ESP Filing Seminars” Plan Workshops in Your Facilities Provide Direct Assistance (Facilities Manager & Volunteers Who Will Help Complete the Return) Self-Help Assistance (Volunteer Helps a Group of Individuals File Returns as Same Time)

28. 28 Economic Stimulus Payments  How Can You Help – “ESP Filing Seminars” Minimal Training Required to Prepare Simple ESP Returns IRS Publication 4665 - www.irs.gov/pub/irs-pdf/p4665.pdf IRS Package 1040A-3 - www.irs.gov/pub/irs-pdf/k1040a3.pdf NCOA/AARP Online Tool – www.stimulus2008.benefitscheckup.or g/espp/welcome

29. 29 Economic Stimulus Payments  How Does an Individual File a Simple Form 1040A to Qualify for an Economic Stimulus Payment on a Paper Return? Secure an IRS Form 1040A Write “ECONOMIC STIMULUS” Across the Top of the Form 1040A Write in Taxpayer’s Name, Address and Social Security Number in the Appropriate Boxes

30. 30 Economic Stimulus Payments  How Does an Individual File a Simple Form 1040A to Qualify for an Economic Stimulus Payment on a Paper Return? (Con’t) Check the Filing Status that Applies to the Taxpayer Input Taxpayer’s Earned Income (Wages & Net Self Employment Income Less Than $400) on Line 7

31. 31 Economic Stimulus Payments  How Does an Individual File a Simple Form 1040A to Qualify for an Economic Stimulus Payment on a Paper Return? (Con’t) Input Taxpayer’s Social Security (Form SSA-1099), Tier 1 Railroad Retirement (Form 1099-RBB), and/or Veteran’s Disability &/or Death Benefits on Line 14a If Exact Amount is Not Known, Use Estimate Based on Monthly Benefit

32. 32 Economic Stimulus Payments  How Does an Individual File a Simple Form 1040A to Qualify for an Economic Stimulus Payment on a Paper Return? (Con’t) Input Amount of Non-taxable Combat Pay on Line 40b For Taxpayers Wanting Direct Deposit, need to Complete Lines 44b through 44d with Bank Information Sign Return and Mail to IRS

33. 33 Economic Stimulus Payments  Economic Stimulus Information & Marketing Materials For Latest Information, please visit the Official IRS Website at www.irs.gov to view up to the minute Frequently Asked Questions Section.www.irs.gov From irs.gov Economic Stimulus Information Center, click on the Link to “Marketing Products For Partners” to Locate Various Marketing & Outreach Tools

34. 34 Economic Stimulus Payments  Economic Stimulus Information & Marketing Materials Key Materials Available:  One Page Flyers for SSA, VA, RRB & Low-income Recipients  Sample 1040A  Envelope Stuffers  Radio Public Service Announcements

35. 35 Economic Stimulus Payments For More Information on Economic Stimulus Payments, Please Visit www.irs.gov & Click on “Rebate Questions” on the Home Page or Call IRS Hotline at 1-866-234-2942 www.irs.gov