Demystifying federal taxes

  • Published
  • By Melissa Barlow
  • Spangdahlem Tax Center
It's a fact: federal tax law can be confusing, frustrating and at times seem contradicting. When co-workers and friends talk about tax issues that they have heard about, it's no wonder that filing a federal tax return can seem to be a daunting task. However, at the Spangdahlem Tax Center, the mission is to keep the community informed of legislative changes and to correctly file their federal and state tax returns.

While residing in the United States, the deadline to file taxes was April 15. However, military members stationed overseas receive an automatic extension to June 15. Be aware that taxpayers who owe money to the government will begin to accrue penalties and interest April 15. Taxpayers, to include military, Department of Defense civilians and contractors, stationed in a Combat Zone receive an automatic six month extension from the time they return from the Combat Zone to file their tax returns.

Another topic of conversation that has led to a great deal of speculation as fact is the Economic Stimulus Package. This is a separate payment that will be sent out beginning in May by the Internal Revenue Service Office. Most taxpayers in the Eifel community will be eligible to receive the payments, which range from $300-1,200 and $300 for every dependent under the age of 17. The payments will be either e-filed or mailed by check, depending on the method that was used on the 2007 tax return. The schedule is as follows: 

Those who received a refund by direct deposit:
Last 2 digits of Social Security Number: Payment will be transmitted:
00 through 20 -- May 2
21 through 75 -- May 9
76 through 99 -- May 16

Those who received a refund by check:
Last 2 digits of Social Security Number: Payments will be mailed by:
00 through 09 -- May 16
10 through 18 -- May 23
19 through 25 -- May 30
26 through 38 -- June 6
39 through 51 -- June 13
52 through 63 -- June 20
64 through 75 -- June 27
76 through 87 -- July 4
88 through 99 -- July 11

To receive these additional payments, the only action that has to be taken is to file a 2007 tax return. The IRS will use the information on the 2007 tax return to determine who is eligible, how much will be sent and the method of payment. Disregard e-mails stating that there is a need to log on to a Web site and enter information such as Social Security numbers or credit card numbers. These are "phishing" scams and are in not associated with the federal government.

For complete details on the Economic Stimulus Package or to determine how much should be expected to receive, visit www.irs.gov a unit tax advisor or the Spangdahlem Tax Center. The Tax Center has walk-in hours Monday, Wednesday and Friday from 9 a.m. to noon. To schedule an appointment, call 452-1040.