Size of economic stimulus check depends on income and other factors

by Cara Restelli, KY3 News

Size of economic stimulus check depends on income and other factors

By Gene Hartley

If you're already planning how to spend your economic stimulus check from the federal government, you might want to put those plans on hold. You might not get as much as you think you should.

KY3 News has received many telephone calls and e-mail messages from angry Ozarkers who want to know why they didn't get the right amount. As we discovered, there are some catches to the stimulus program that could leave you empty handed.

Jim Lowe thought of thousands of ways that he could spend his economic stimulus check to help improve his home. Most of those plans are on hold.

“That's ridiculous. They lied to me, they lied to the American public,” said Lowe.

Lowe thought he and his wife would receive $1,200 but that's not what a letter from the IRS says.

“You are entitled to a check of $600,” it says.

It turns out Lowe didn't make the minimum required income to qualify for the maximum rebate.

“They designed it to benefit them, not the person here. Yet they advertise that everyone is going to get this,” said Lowe.

“You shouldn't assume you're going to get $600 or $1,200 because it all depends on your tax liability,” said Sandra Byrd, a professor of Accounting at Missouri State University.

Generally, you need to make at least $3,000 and no more than $75,000 if you're single and $150,000 if you're married and file joint tax returns jointly to get the maximum amount. Even then, there are exceptions.

“If you owe back taxes, the IRS will take money. Also, if you have debt like an outstanding student loan, the IRS will take money to cover that,” said Byrd.

Byrd says you shouldn’t assume you'll get an additional $300 per child.

“You're only going to get $300 if you have a child under 17 eligible for the child tax credit,” she said.

The bottom line, she says, is not to spend the money before you get it. It's advice that Lowe is glad he followed, although he still wishes he didn't have to put his home improvement plans on hold.

“That $1,200 would have gone a long way to help with our roof,” he said.

Many calculators are out there but the most thorough one is on the IRS’ Web site. For an accurate estimate, be sure to have your 2007 tax return handy. You'll have to enter values in each line to get an accurate rebate amount.

If you're still not sure, the IRS should be sending you a letter prior to sending you a check to letg you know how much you will receive.

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