IRS rebates on the way to mailboxes

Tax relief may be on the way for many Alleghany County residents, with checks being sent out weekly by the U.S. Treasury Department. The rebates were approved as part of a tax cut package passed by President George W. Bush and congress.

The first ‘tax relief' checks for local residents were mailed out on July 20, with a second round send out last Friday, July 27.

About eight million checks valued at $3.4 billion were mailed out nationwide. The checks will continue to be sent until the end of September, by which time all eligible tax payers should have been mailed their checks.

The Internal Revenue Service is emphasizing that taxpayers don't need to call, fill out special forms or do anything else to receive the check. Once an individual's 2000 tax return has been processed, the check will be mailed out automatically.

So who qualifies? Anyone who payed income tax for 2000 is eligible, unless they are claimed as a dependent on another person's taxes. Taxpayers' 2000 returns will show if income tax was paid. (In other words, if line 51 on your Form 1040 is zero, you did not pay income tax and you will not receive a check, also called an ‘advance payment check.' Filers of form 1040A should look to line 33, while form 1040EZ filers should look at line 10). Some people paid taxes for Social Security and self-employment, but did not pay income tax. Only those who paid income tax are eligible.

Other IRS answers to frequently asked questions include:

• If you've moved since filing your tax return, you should file a change of address form with the U.S. Postal Service. Unlike some government checks, these checks can be forwarded to a new address;
• Your check may be reduced, even to zero, by taxes you owed or by non-tax federal debts, such as certain child support obligations or student loans. In such a case, you should receive a letter explaining the reduction.
• The advance payment is calculated using information on 2000 tax returns or as adjusted by the IRS during processing. The amount of the refund cannot be re-figured.

Get the rest of this article in this week's issue of the Alleghany News!

Email: news@alleghanynews.com