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| The Economic Growth and Tax Relief Act of 2001 |
July 03, 2001 |
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| On July 1st, New Mexicans saw their income tax rates reduced.
The last time that happened was in 1981 -- 20 years ago.
WHAT WILL THIS MEAN FOR NEW MEXICO?
Simply put, this means money back in the pockets of every person and family who pays taxes.
The Treasury Department will send out about 98 million checks in August and September, providing $38 billion in immediate tax relief.
The bill will make the 10 percent retroactive to 2001, providing single taxpayers with a refund of up to $300, single parent taxpayers with a refund of up to $500, and married couples with a refund of up to $600.
New Mexicans will get tax relief totaling $3.6 billion dollars from rate reductions and estate tax relief from 2001 to 2011
New Mexicans will get tax relief totaling $.8 billion dollars from the child credit from 2001 to 2011
New Mexicans will get tax relief totaling $.4 billion dollars from the marriage penalty repeal from 2001 to 2011
507,000 New Mexicans will receive a check in 2001 based on the return filed for 2000, totaling $212 million in tax relief
HOW IT`S GOING TO WORK
The U.S. Treasury will begin to send out the rebate checks July 20 and will conclude this process on Sept. 28.
The Internal Revenue Service (IRS) will mail all taxpayers a letter in mid-July to let them know the amount of their check and when they will receive it.
The Treasury is only able to send out 11 million checks a week, so the checks will be mailed gradually according to the last two digits of your social security number (SSN).
Taxpayers with Social Security numbers ending in “00” can expect to have their checks mailed on July 20, while those with numbers ending in “99” will have their rebate checks mailed Sept. 28. Check here to determine when you`ll get your check.
For joint returns, the first SSN listed on the return will be used to determine when your check is mailed.
The IRS is required to base the amount of the refund check on 2000 tax returns, so taxpayers who file late or pursuant to an extension will receive their checks as soon as they file last year’s federal tax return.
However, the IRS is not permitted to issue any checks after December 31, 2001, so taxpayers who file their 2000 returns after December may claim their rebate as a credit on their 2001 tax returns. |
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