Edvenson Consulting

Subject: the notice we overseas Americans have received by mail entitled, "Economic Stimulus Payment Notice"

Context:  Some of my tax clients are confused about this.  What does it mean?

Perspective:  I don't blame them.  Here's the scoop.

This letter begins, 'Dear Taxpayer,' but has little else to do with paying taxes.  It appears that the economic stimulus that the federal government (ie. the Bush proposal) sought to put into place - in order to create an economic stimulus for 'America,' meaning: help U.S. markets recover from what looks like a buying slowdown, is here in our mailboxes, . . . even those of us abroad. 

First, let's assume that the government knows what it is doing, and we Americans overseas are actually supposed to be included in the payout on this 'incentive.'  Second, don't ask whether you think it is wise budgetary policy to hand out a huge amount of money to almost anyone who can claim at least $3,000 in CY 2007 income and/or child dependents with Social Security numbers;  that's just the way it's going to be.  Get it?

What does it mean to you?  Well, despite the fact that Americans who pay taxes overseas in their country of residence may have no qualifying income in the U.S., it may mean that if they file their tax forms to the U.S. IRS, they could get a check for the amounts noted.  The notice gives the general layout.  A similar version is available to read at the IRS website, at: http://www.irs.gov/formspubs/article/0,,id=180179,00.html. 

If you are not sure whether you would get back some money, why not do the calculation that is provided at the website.  The link is: http://www.irs.gov/app/espc/.  If you would like me to calculate it, I'm happy to do that for you.  I do taxes for overseas Americans and those others, non-resident aliens, with the need to file their personal income tax forms annually with the IRS.  Just note:  if you do not file tax forms, you do not get a pay-out, even if you might otherwise have qualified for one.  So check out your ability to get a payout, even if you would normally fall below the line on need to file CY2007 IRS forms on personal income.

Feel free to contact me for a free inquiry, and an estimate of the cost to do your work for you.  In case you are only finding this blog now, for the first time, I note that I wrote about the timeframe for doing overseas taxes on Sept. 30, 2007:  you will find that in the archives here, as well as a more recent article on general changes in the 2007 taxing provisions.

Since there are only two things which are certain,  Death and Taxes, I suggest you take care of your tax forms!  I don't recall forestalling death quite so handily.