Stimulus Tax Rebate
What's the Maximum Stimulus Rebate Payment:
$600 for unmarried persons and $1,200 for married couples. Plus an additional $300 per qualifying child.
How Will the Rebate be Calculated:
The rebate is limited to the net tax liability. For many people, this amount will be the same as found on Form
1040 Line 57, Form 1040A Line 35, or Form 1040EZ Line 10. The rebate is reduced if the net tax liability is less
than the maximum credit. The rebate will also be reduced for people with higher incomes. The stimulus rebate is
reduced by 5 percent of the amount of income in excess of $75,000 (or $150,000 for married couples). The IRS
has posted an Economic Stimulus Payment Calculator on their Web site.
Who's Eligible for the Rebate:
Individuals who have at least $3,000 in qualifying income.
Who's Not Eligible for the Rebate:
Dependents, or people who could be claimed as dependents by another taxpayer, are not eligible. Also ineligible
are non-resident aliens, anyone without a valid Social Security Number, and estates and trusts.
Wages, self-employment, Social Security benefits, Railroad Retirement benefits, and veterans' disability
compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2007.
Supplemental Security Income (SSI) does not qualify for the rebate.
Qualifying Children and Dependents:
Any child under age 17 who is related to the taxpayer by blood, marriage, adoption or foster arrangement and
whom the taxpayer can claim as a dependent. Dependents age 17 and over do not qualify for the additional
rebate. Dependents of any age do not qualify for the rebate in their own name even if they earn their own
Impact on 2008 Tax Returns:
The stimulus rebates will be calculated by the IRS using information on the 2007 tax returns. If taxpayers were
entitled to a larger rebate based on their 2008 income, those taxpayers will be able to claim a tax credit for the
additional amount. Taxpayers won't have to pay back the rebate, however, if using their 2008 income would
result in a lower rebate amount.
How Rebates will be Processed:
The IRS will mail out two notices to taxpayers. The first notice will inform people about the rebate. The second
notice will confirm the taxpayer's eligibility, amount of the rebate that the IRS has calculated, and when the
taxpayer should receive the rebate payment. Rebates will be sent by direct deposit, if bank account information
was provided on the 2007 tax return, or by paper check.
Filing a Return:
Individuals must file a 2007 tax return to receive the stimulus rebate payment. Even if the person does not have
a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know
that the person qualifies for the rebate.
If you are filing a 2007 tax return solely for the purpose of claiming the stimulus rebate repayment, show your
nontaxable Social Security benefits, veteran's disability pension, or Railroad Retirement benefits on Form 1040
Line 20a or Form 1040A Line 14a. This will let the IRS know that you have qualifying income for the purposes of
the rebate, even if you have no taxable income.
Direct Deposit Issues:
The IRS wants to send out rebate payments via direct deposit. This means you need to make sure your direct
deposit information is absolutely, 100% accurate. Any mistake here could result in losing your rebate forever.
Refund Offset Issues:
The rebates are subject to the same offset procedures as other tax refunds. If a taxpayer owes back taxes, is in
arrears on child support, or has defaulted on a student loan, the rebate payments will be applied to pay those
debts. Taxpayers with concerns about this should contact the Treasury Offset Program at 1-800-304-3107.
Check on the Status of Your Rebate:
If you have filed your 2007 tax return, you can check on the status of your stimulus rebate using the following
application on the IRS Web site: Where's My Stimulus Payment?
Legislative Information about the Rebates
Economic Stimulus Act of 2008 (HR 5140)Package Form 1040A-3 (pdf)Stimulus Payments FAQ
Detailed Rebate Information from the IRS
Information on Stimulus PackageFacts about the 2008 Stimulus PaymentsInstructions for Low-Income Workers
and Recipients of Social Security
Tax Tips for a Smooth Rebate
File the Right Tax FormBeware of Incorrect Direct Deposit Information
* IRS Has $2.5 Billion for Nearly 2 Million Taxpayers
* IRS on The Checks
* IRS Opens 2005 Tax Season: Easier Filing, Tax Law Changes
* IRS Has $2.4 Billion in Unclaimed Refunds
* IRS Offers Tax Relief for Military Personnel