In his latest weekly column, Fourth District Congressman Ike Skelton described the economic stimulus payments Americans have been receiving as examples of Congress acting in a bipartisan fashion to further the interests of all Americans. The column is reprinted below:
In February, the Congress passed and the President signed into law H.R. 5140, the Economic Stimulus Act of 2008, a bill that was designed to jumpstart our economy and provide more than 130 million Americans with a one-time tax credit. Starting in May, the Treasury Department began sending the economic stimulus payments to millions of households, putting money directly into the hands of those who are struggling with the rising cost of gasoline and groceries. However, the stimulus payment can only be sent to those who file a 2007 Federal income tax return, and as of today, more than 100,000 Missourians who are eligible for this payment have not yet done so.
Under the Economic Stimulus Act of 2008, households that have earned at least $3,000 in qualifying income in 2007 may be eligible for the minimum economic stimulus payment -- a $300 payment for individuals, $600 for couples who file jointly. Qualifying income includes earned income (wages, tips, salary); disability or survivor's benefits from the Social Security Administration; disability compensation, disability pension or survivors' benefits from the Department of Veterans Affairs; and Tier 1 benefits from Railroad Retirement. However, Supplemental Social Security Income (SSI) does not count as qualifying income for the stimulus payment.
Earned income, such as wages or tips, in addition to the qualified income described above can be combined to meet the $3,000 minimum. For example, this means a household with $500 in earned income and $2,500 in any combination of qualified income would be eligible for the one-time economic stimulus payment, even though the household would not normally file taxes on this income.
Most households only need to file a tax return as they normally do to receive their one-time economic stimulus payment. The IRS will calculate their eligibility and their payment amount. People who are not otherwise required to file an income tax return, but who meet the qualified income eligibility, should file Form 1040A by October 15 to ensure they receive the economic payment.
The IRS is committed to ensuring all eligible Americans are able to claim their stimulus checks. The IRS website, irs.gov, provides valuable resources for income filers, including an eight-page information package that provides instruction on completing 1040A. Those who need further assistance can call the IRS toll-free tax assistance hotline by calling 1-800-829-1040. Live telephone assistance for people with hearing impairments is available by calling 1-800-289-4059.
Importantly, households should also note that the economic payment is not income. Because the stimulus payment is actually a special, one-time tax credit, households will not owe tax on their payment when the 2008 tax season rolls around. Nor will the stimulus payment program count as income for benefits like SSI, Food Stamps, or Medicare. Rather, the stimulus payment is designed to put money in the hands of the American taxpayer to ease the pain of economic hardship and boost our flagging economy.
The Economic Stimulus Act of 2008 is an excellent example of Congress coming together to enact a bipartisan measure in the interests of all Americans, but it can only work if the American people allow it. I encourage all Missourians to step forward and be a part of this landmark piece of legislation.
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