SIGN UP TO RECEIVE THE LATEST POSTS VIA EMAIL!2008 Retirement Contribution Limits
March 15, 2008
As we kick off 2008 now is a good time to make sure you are maxing out your 401k and ROTH IRA (if eligible). Remember that a 401k and ROTH might be the only thing you will have when you retire considering the current state of Social Security. So start maxing out today since the earlier you do it the greater it will grow before you need to use it!
Here are the contribution limits for 2008 for each retirement plan (401k, ROTH, 403b, and Simple IRA). I also included the 2007 limits as a comparison:
Note that for a ROTH IRA there are certain income limits that start to phase out how much you can contribute. If you are within the phase out range you can only make a partial contribution. If you are above that range then you are not eligible to make a contribution to a ROTH for that year. When you file your taxes it will tell you how much you can contribute based on your adjusted gross income (AGI). Personally, I usually wait to contribute to my ROTH the day before I file my taxes to make sure I haven’t over contributed based on my AGI.
Also don’t forget that you can still contribute to your ROTH IRA for 2007. Just make sure you do so prior to filing your 2007 taxes.
2008 Tax Rebate Stimulus Plan Payout Update
March 11, 2008
Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!
The IRS has mailed out a Stimulus Payment Notice to everyone. You should be receiving yours shortly. I have provided mine here if you have not gotten yours yet. (click on image for larger pictures. You may need to save them to your PC as IE doesn’t render the images very well)
This letter is basically reminding you to file a 2007 tax return, even if you haven’t needed to in the past, to be able to be eligible for the tax rebate payout. On the front of the mailer it provides a quick description of what your rebate will be based on current income levels. This doesn’t cover all situations however, so be sure to visit the 2008 Tax Stimulus Rebate FAQ for more info.
Unfortunately the note does not give an update to the tax rebate payout schedule. From what I hear it is coming soon, but the IRS is not ready to release it yet. Keep checking back and I will provide the payout schedule as soon as I have it.
2008 Tax Rebate Stimulus Plan Payout Update
February 28, 2008
Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!
I have been asked by a bunch of readers what the stimulus plan payout schedule is going to be for the 2008 Tax Rebate. Unfortunately they still have not released an updated payout schedule yet. My source inside the IRS says it should be coming in the next few weeks, so please keep checking back as I will post it as soon as it is public knowledge.
Another item that I have received a bunch of questions on is whether or not we will have to pay taxes on the rebates that we qualify for. The good news is no. Check out the IRS Frequently Asked Questions Site and at the bottom you will find this:
Q. Is my stimulus payment taxable?
A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.
Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.
This is definitely great news, because if I was going to have to pay taxes on it I was just going to save it, but now, that Xbox 360 is looking better and better.
Subscribe to my RSS Feed to get the latest updates. You can also see all my posts on the 2008 Tax Rebate Stimulus HERE!
2008 Tax Rebate Stimulus Plan Update
February 19, 2008
Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!
Here is an update from the IRS Regarding the Tax Rebate Payout Plan:
The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won’t need to do anything else to receive the stimulus payment. For taxpayers who haven’t filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.
As soon as I get the stimulus plan payout schedule I will be sure to post it here, so keep checking back. Be sure to see my Other Posts for more detail on the Tax Rebates.
2008 Tax Rebate Stimulus Plan Update
February 12, 2008
Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!
More information is emerging on the 2008 Tax Rebates.
Here is the payout information based on your SSN number: (Update as of 2/27/08 the IRS is now reporting that they may start sending out the rebate checkes as soon as May, so this table may shift up. I will post the new dates as soon as the IRS posts them)
3/18/08 – Update: The new stimulus plan payout schedule has been released. See it here
The rebate is going to be based off of your 2007 adjusted gross income, so be sure to get your tax return in by the April 15th deadline.
Here is a link to the FACT Sheet on the Tax Rebate put together by the Department of Treasury.
Also, be sure to check out the rebate FAQ put together by the IRS. This should most likely answer all your rebate questions.
Damn, mine is coming in September. But hey, better late then never. And don’t forget that you will be paying taxes on the rebate amount you get on your 2008 Taxes next year, so spend wisely!!!
2008 Tax Rebate Details
January 29, 2008
Update: See my latest posts on the Tax Rebate Payout Details in the 2008 Tax Rebate Category!
More detials are starting to emerge regarding the 2008 Tax Stimulus rebate. It appears now that the rebate will be calculated off of your 2007 income. As I said in my previous post this is great for me as I was married in May of last year so our combined incomes will now allow us to receive the full $1200. If they used the 2006 numbers we would only be getting back $600.
PBS.com has created a calculator to help you determine what stimulus plan amount, if any, you will receive.
As the rebate still need to pass in Congress, the details could change. I doubt they will however as this is an election year everything seems to magically work out, doesn’t it? Wait till next year when they raise taxes to get this rebate money back!!!
