May 2008 – Volume 1 Issue 2

I had originally planned to do this month's newsletter on a totally different subject.

But I decided to listen to my clients who, to a person, are confused about the manna that is about to fall from heaven, otherwise known as Tax Stimulus. So, with great trepidation I will explain this wonderful gift that Congress and the President are about to bestow upon us.

Best regards,

Brian Greenberg, CPA, CCPS
President
Brian Greenberg & Assocs

Who Qualifies?

First, you have to file to play. Your 2007 tax return is the bible (note all of the biblical references) the IRS will use to determine if you and/or your family receive anywhere from $300 to $1200 or more, should you have procreated.

For Single people, you get $300 if you made more than $3,000 in qualifying income. The term qualifying income means either you received money from either a job or received Social Security. If you earned a princely sum greater than $30,000 you get $600.

For Married people, earning more than $3,000 gets you $600 and earning more than $30,000 gets you $1,200. But wait there's more. If you brought a little one into the world in 1992 or later (16 and under) and have a valid Social Security number you get an additional $300. This is an extra $300 per child.

Limitations

Don't plan on spending this windfall just yet. You may not qualify should you or your spouse not have a valid Social Security number. I know, you're feeling good, you got one of those. Now comes the catch (otherwise known as the income limitation).

For Singles, when you make more than $75,000, the tax stimulus payment will be reduced by 5 percent for every dollar above the limit.

If you're Married, make more than $150,000, the $1,200 tax stimulus starts to goes away. It is at the same rate for singles- reduced by 5 percent for every dollar above the limit.

Moving

Anyone who moves after they have filed their 2007 tax return should notify the IRS by filing Form 8822, Change of Address, and also notify the Post Office.

Exclusions

If an individual is claimed as a dependent on someone else's return — no money for you. This means, if you claimed your child as a dependent on your return- they don't get the money if they happened to file on return on their behalf as well.

Also ineligible Nonresident Aliens, residents of Puerto Rico and residents of the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI).

Now, should you owe money to the IRS from prior years — you didn't really think the IRS would send you the money, did you?

So, that's it, anybody buying a house with their windfall? Tell me how you plan to spend your money so banks can lend more. It's up to you now to help the economy. Go forth and spend.

Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008:

Direct Deposit Payments

Paper Check

There's Nothing to Do — Any email purporting to requesting info in order to receive the Tax Stimulus is to be avoided, especially irs.gov. It is a scam, if you are worthy of the Stimulus, you will get your money — if not, you won't.

Brian Greenberg and Associates is a Marlton, NJ CPA firm providing tax and financial planning services. We specialize in helping small business owners retire on their own terms. Follow this link for more on how we can help you.

Brian C. Greenberg & Assocs
1 Eves Drive, Suite 111
Marlton, NJ 08053
856-596-7800

website: www.greenbergcpa.com
email: brian@greenbergcpa.com

Brian Greenberg is Registered Representative of and Securities and Investment Advisory Services Offered Through Hornor, Townsend & Kent, Inc. (HTK), Registered Investment Advisor, Member NASD/SIPC.