The Economic Stimulus Plan

The Stimulus Payment also known as the Economic Stimulus Payment or Rebate, is a refundable rebate credit for eligible individuals. The rebate credit will be sent to eligible taxpayers beginning in May of 2008 and will be based on their 2007 tax.

How much will I get?

Most taxpayers will get the maximum amount of $600 ($1,200 for those who file a joint return). The minimum payment is $300 ($600 for those who file a joint return). There is an additional $300 for each child on the tax return that has a Social Security number and is a qualifying child for the Child Tax Credit.

The payment is limited to a maximum of $600 ($1,200 if filing a joint return) or the total tax liability on the return, whichever is less. The payment is subject to maximum income limits and will be reduced by 5% of the amount of income in excess of $75,000 ($150,000 if filing a joint return).

If your income is less than $3,000 and you have other qualifying stimulus income, you will receive the minimum payment of $300 ($600 if you are filing joint).

If your qualifying income is below $3,000 you are not eligible for the Stimulus Payment.

How do I get my check?

Most taxpayers need to do nothing other than file their 2007 tax return as they normally would. The IRS will determine individual eligibility and the amount of your rebate check based on your 2007 tax return. Your payment will be issued to you by the IRS in the same manner your refund check was issued.

Who is eligible?

To receive an economic Stimulus Payment individuals must:

1. Have a qualifying income of greater than $3,000, and

2. Have a Social Security number, and

3. Not qualify as a dependent of another taxpayer.

What is qualifying income?

Qualifying income for the Stimulus Payment is:

1. Earned Income such as wages and net self-employment

2. Social Security benefits

3. Social Security equivalent Tier1 Railroad Retirement benefits

4. Veteran's disability compensation, pension, or survivors' benefits received from the Department of Veteran's Affairs.

What Income does not qualify?

1. Supplemental Security Income (SSI)

2. Investment Income such as; dividends, interest, and capital gains.

3. Normal Retirement distributions, IRA distributions, and non-Social Security equivalent Railroad Retirement payments.

4. Unemployment compensation.

5. Lottery or gambling winnings.

When will the Stimulus Payment checks be sent?

The IRS has announced they will start sending checks in early May and continue through December 31, 2008.