The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans' benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.

The IRS emphasized that people with no filing requirement who turn in a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.

Additional Payments for Parents and Others with Qualifying Children

Parents and anyone else eligible for a stimulus payment will also receive an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.


Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.

Special Circumstances for Recipients of Social Security, Railroad Retirement and Certain Veterans Benefits

Individuals who receive Social Security benefits, Railroad Retirement benefits and certain veterans' benefits may have to follow special filing requirements in order to receive the basic amount:

Those who have already filed a 2007 return reflecting qualifying income of $3,000 or more do not have any additional filing requirements and do not need to do anything more to receive their payment.

Those who have already filed a 2007 return showing less than $3,000 in qualifying income and did not list their Social Security, Railroad Retirement or certain veterans benefits should file a Form 1040X to list those non-taxable benefits and qualify for a payment.

Those who are not required to file a 2007 return but whose total qualifying income including Social Security, certain Railroad Retirement and certain Veterans benefits would equal or exceed $3,000 should file a return reporting these benefits on Line 14a of Form 1040A or Line 20a of Form 1040 to establish their eligibility. Please note the form lines just mention Social Security, but use these lines even if your only benefits were Railroad Retirement or veterans' benefits.
Notices

Most taxpayers will receive two notices from the IRS. The first general notice from the IRS will explain the stimulus payment program. The second notice will confirm the recipients' eligibility, the payment amount and the approximate time table for the payment. Taxpayers will need to save this notice to assist them when they prepare their 2008 tax return next year.

Anyone who moves after they have filed their 2007 tax return should notify the IRS by filing Form 8822, Change of Address, and also notify the Post Office.


Exclusions

Individuals who file Form 1040NR, 1040PR or 1040SS are not eligible for the stimulus payments. These returns are normally filed by Nonresident Aliens, residents of Puerto Rico and residents of the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI). Residents of U.S. possessions will be receiving their rebates directly from the possessions.

Also ineligible are individuals who can be claimed as dependents on someone else's return.

Dividends, interest and capital gains income is not included when determining qualifying income. Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. Also not included in qualifying income are non-veterans or non-Social Security pension income (such as those from Individual Retirement Accounts).

Stimulus payments will be subject to offset against outstanding tax and non-tax liabilities in the same fashion as regular tax refunds.

In addition, the IRS emphasizes the stimulus payments will not count toward or negatively impact any other income-based government benefits, such as Social Security benefits, food stamps and other programs.

Free Tax Help Available

Low- and moderate-income workers, including veterans, can get free tax help through the Volunteer Income Tax Assistance (VITA) program. Call 1-800-906-9887 to locate the nearest VITA site.

The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 and older. As part of the IRS-sponsored TCE Program, AARP offers the Tax-Aide counseling program at more than 7,000 sites nationwide during the filing season. To find an AARP Tax Aide site, call 1-888-227-7669 or visit the AARP Web site.

For Additional Information

The IRS.gov Web site is the best source for additional information and answers to questions regarding the stimulus payments. The site will soon have an online tool which will allow taxpayers to calculate the amount of their advance payment and to check on the status of their specific payment.
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Where to file

Rebate Questions

IR-2008-70, May 7, 2008

WASHINGTON - As millions of Americans begin receiving their economic stimulus payments, the Internal Revenue Service released a list of the most-frequently-asked questions -- and answers -- that people now are asking.

"Many people have questions about the stimulus payments, and the IRS has the answers available on the IRS.gov Web site," IRS Commissioner Doug Shulman said. "The stimulus payments are automatic for eligible taxpayers who filed a 2007 tax return, and taxpayers do not need to take any additional action to receive the payment."

Stimulus payments started going out last week, and the initial round of payments will continue on a weekly basis through mid-July. In all, nearly 130 million payments will go out this year. Last week, 7.7 million payments were direct deposited, and the first mass production of paper checks begins Thursday.

Since last week millions of Americans have visited IRS.gov and called the IRS toll-free lines. The IRS reminded taxpayers the fastest way to get answers is to visit IRS.gov, which has payment schedules and other information.

Since the payments began, the IRS has been fielding a variety of questions centered on the payment schedule, factors affecting direct deposit of payments, eligibility requirements and questions about the payment amounts. The IRS today released an updated set of Frequently Asked Questions covering everything from when someone can expect the payment to whether it will be delivered electronically or on paper. A link to these Frequently Asked Questions can be found at the bottom of this page.

The most common question has been when people can expect their payments. Economic stimulus payments will be issued according to the last two-digits of the taxpayer's Social Security number. For joint filers the payments will go out based on the last two digits of the Social Security number of the person listed first on the return. Payments will be made by either direct deposit or paper check, based generally on the option people chose when they filed their 2007 tax returns.

The payment schedule below is for people who filed early enough to have their tax returns processed by April 15.

Related Items:

Frequently Asked Questions

Q. When will I get my payment?

A. Payments are going out now for those returns processed by April 15 and will continue on a weekly schedule through mid-July. See the payment schedule for both direct deposit and paper checks for further information. Payments will continue through 2008 for returns filed after April 15.

Q. I filed after April 15 and the payment date for my Social Security number has passed. How long will it take for me to get my stimulus payment?

A. It will generally take a minimum of six weeks after you file your return to get your stimulus payment.

Q. I filed my return on time, but I haven't received my stimulus payment, even though the payment date listed for my Social Security number has passed. Why?

A. In general, the payment schedule only applies if your return was received and the IRS finished processing it before April 15. If you filed your return on time, but close to the April 15 deadline, the IRS may not have finished processing it before April 15.
Processing times for tax returns and stimulus payments vary. If you are getting a regular income-tax refund, the IRS will send you that refund first. Normally, your stimulus payment will follow one to two weeks later.

If you are not expecting a regular tax refund, your stimulus payment generally should arrive a minimum of six weeks after you file.

Also, if you chose direct deposit and requested a Refund Anticipation Loan (RAL) or had your refund deposited into more than one account, you will receive a paper check based on the distribution schedule for paper checks.

Q. I chose direct deposit for my 2007 tax refund but also requested a refund anticipation loan (RAL) from my preparer. How does that affect my stimulus payment?

A. Taxpayers who use Refund Anticipation Loans (RALs) or enter into any other loans or financial agreements with a tax professional, such as agreeing to have return preparation fees deducted from their refunds, cannot receive their stimulus payments by direct deposit and instead will get paper checks based on the paper check distribution schedule.

Q. Will the IRS allow me to provide it with direct deposit information, if I didn't include that information on my original tax return?

A. You cannot correct direct deposit information or request a direct deposit after a return has been filed.

Q. Is there something I can do to prevent my stimulus payment from being automatically deposited into the account that I identified for the direct deposit of my regular refund?

A. Generally, if you designated direct deposit on a tax return, the stimulus payment will go to the account number you designated. If the account number is no longer active, the IRS will send you a paper check. This process may take several weeks.

Q. I received my stimulus payment, but it was less than what my friends and neighbors received. Why?

A. Your economic stimulus payment is based on information provided on your 2007 income tax return.

Many but not all taxpayers qualify for the maximum basic payment of $600 for singles or $1,200 for married couples. Many parents are also receiving an additional $300 for each qualifying child, born after Dec. 31, 1990.

Your payment may be less than the maximum for one or more of the following reasons:

You are single and your net income tax liability is less than $600. If you file Form 1040 net income tax liability is the amount shown on Line 57, plus the amount on Line 52.
You are married and your net income tax liability is less than $1,200.
You are single and your adjusted gross income (AGI) is more than $75,000. On Form 1040, AGI is the amount on Line 37.
You are married filing a joint return and your AGI is more than $150,000.
You owe back taxes that reduced your payment.
You have non-tax federal debts such as unpaid student loans or child-support obligations that reduced your payment.
Around the time you receive your payment, you will also receive a notice from the IRS explaining how your payment was calculated. It is important to keep this notice as a record of your economic stimulus payment. In addition, you'll get a separate notice if you owe back taxes or non-tax debts that were offset or deducted from your stimulus payment.

The Economic Stimulus Payments FAQs section of this Web site has further details on how these payments are figured.

Q. The notice I received shows I should have gotten more than the government actually deposited into my bank account. What happened?

A. It could be that the amount deposited into your bank account was what remained of your stimulus payment after it was reduced, or offset to collect back taxes or other debts such as a student loan or child support. If this is the case, you will receive a separate notice about two weeks after you receive your stimulus payment and notice.

Q. I have moved since filing my 2007 tax return. How will my payment reach me?

A. You should file a Form 8822 with the IRS and a change of address notice with the U.S. Postal Service. This will ensure your check is sent to your new address. Without your current address, the check could be returned to the IRS as undeliverable.

Q. I chose direct deposit for my 2007 tax refund but also requested my electronic filing and/or tax preparation fees be deducted from my refund. Does that affect my stimulus payment?

A. If you requested that your electronic filing or tax preparation fee be deducted from the amount of your refund, you have entered into a financial agreement with the tax preparation provider or e-file software company for a refund anticipated check (RAC). Both Refund Anticipation Checks (RACs) and Refund Anticipation Loans (RALs) are bank products. The money that is deposited into your bank account comes from the financial institution associated with your electronic filing software provider or tax preparation provider, not directly from the IRS. Taxpayers who use RALs, RACs or enter into similar loans or financial agreements with their tax professional or tax software companies will not receive their economic stimulus payments by direct deposit. Instead they will get a paper check that will be issued according to the schedule that has been published for paper check distribution.

Q. I chose to have my tax refund deposited onto a "stored value card" or debit card through the professional tax preparer I used. Will my stimulus payment be directly deposited onto that same stored value card or debit card account?

A. Yes, unless you requested a refund anticipation loan (RAL) through your tax professional or the stored value card or debit card account has been closed, in which case you will receive your economic stimulus payment by paper check. Because the IRS must wait until the money is returned, this process may take several weeks.

Q. I received a stimulus payment and I want to verify that it is correct. How do I figure the payment, myself?

A. The easiest way to figure the amount is to use the Economic Stimulus Payment Calculator on the IRS.gov Web site. Essentially, there are two parts to the stimulus payment: a basic amount based on tax liability, filing status or other qualifying income, if there is no tax liability, and an additional amount based on whether a qualifying child is reported on the return.

Basic Amount of Payment: If you had a net income tax liability for 2007, you will generally receive a payment, unless you can be claimed as a dependent on someone else's return, had higher income or do not have a valid Social Security number.

Your net income tax liability is one of the following:

On Form 1040, the amount shown on Line 57 plus the amount on Line 52;
On Form 1040A, the amount shown on Line 35 plus the amount on Line 32; or
On Form 1040EZ, the amount on Line 10.
NOTE: Net income tax liability is not the same as the amount of tax withheld from your pay, the amount of your refund or the balance due on your return.

Your stimulus payment is equal to your net income tax liability, but no more than $600, if you are single, or $1,200, if you are married filing a joint return.

If you had no net income tax liability for 2007, you are usually getting a minimum payment of $300, if you are single, or $600, if you are married filing jointly, as long as you had qualifying income of at least $3,000 in 2007. To figure your qualifying income, add together the following amounts:

Wages that are reported on Form W-2;
Net self-employment income that is taken into account in computing taxable income;
Social Security benefits reported in box 5 of the 2007 Form SSA-1099 you received in January 2008. If you don't have this form, you can estimate your annual benefit by multiplying your monthly benefit by the number of months (usually 12) you received benefits during 2007;
Certain Railroad Retirement benefits reported in box 5 of the 2007 Form RRB-1099 you received in January 2008;
Veterans' benefits received in 2007, including veterans' disability compensation and disability pension or survivors' benefits received from the Department of Veterans Affairs. You can estimate your annual benefit by multiplying your monthly benefit by the number of months during 2007 you received benefits;
Nontaxable combat pay if you chose to include it as earned income on your 2007 return.
Note: Supplemental Security Income (SSI) is not considered qualifying income and is not included for the purpose of establishing eligibility for the stimulus payment.
Additional Amounts for Qualifying Child: If you qualify for the basic amount, you may receive an additional $300 for each qualifying child. To qualify, a child must be younger than age 17 and have a valid Social Security number.

Phase Out: Your payment is reduced, or you may receive no payment at all based on your income level. The stimulus payment begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds. Your AGI is the amount shown on:

Form 1040, Line 37
Form 1040A, Line 21, or
Form 1040EZ, Line 4
Q: I normally don't need to file a tax return. How do I know if I'm one of those people who may be eligible to receive an economic stimulus payment?

A: This group includes some recipients of Social Security, Railroad Retirement or veterans' benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or those who receive veterans' disability compensation, pension or survivors' benefits from the Department of Veterans Affairs. These people will be eligible to receive a payment of $300 ($600 on a joint return), if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans' benefits and earned income, such as income from wages, salaries, tips and self-employment. For people filing joint tax returns, only a total of $3,000 of qualifying income from both spouses is required to be eligible for a payment.

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

But there are more details to know about and even a calculator to use. Find out more here and visit this page regularly for the latest updates.

The Basics
Need some quick and basic information? We have it for you right here.

Basic Information on the Stimulus Payments

IR-2008-18, IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate
FS-2008-15, Facts about the 2008 Stimulus Payments
IR-2008-21, More Information on Stimulus Payments Posted to IRS.gov; New Details for Recipients of Social Security, Veterans Benefits
IR-2008-28, Special Economic Stimulus Letters Reach Mailboxes in March
IR-2008-37, Special Economic Stimulus Payment Packages Go to Social Security, Veterans Recipients

Economic Stimulus Payment Calculator

A new online calculator will give you an estimate of the stimulus payment you may be due. Just answer a few questions and the calculator will do the rest. Remember: you must file a 2007 tax return in order to receive the payment.

Calculator
Economic Stimulus Payment Schedule

Payments will start May 2. The last two-digits of your Social Security number and whether you opted for direct deposit into your financial account or a paper check will determine when you receive your payment.

Payment Schedule

Stimulus Payment Scenarios
What does it look like for you?

Married with Qualifying Children

Married without Qualifying Children

Married Filing Separately, with or without Qualifying Children

Single (Head of Household) with Qualifying Children

Single without Qualifying Children

You May Be Eligible Even if You Normally Do Not File a Tax Return

If you have at least $3,000 in certain types of income, you may be eligible for the economic stimulus payment. You also may be able to use Free File - Economic Stimulus Payment. See the special types of benefits or income that qualify below:

Especially for Social Security Recipients
Information for people who receive retirement, disability or survivors' benefits

Especially for Veterans Affairs Recipients
Information for people who receive pension, disability and survivors' benefits

Especially for Railroad Retirement Recipients
Information for people who receive Tier 1 Railroad Retirement benefits

Especially for Low-Wage Workers
Information for people who receive a wages, salary, tips, etc. or who are self-employed

Especially for Military Combat Personnel
Information for members of the military serving in a combat zone

Frequently Asked Questions
We have the answers to your questions in Stimulus Payments: Answers to Frequently Asked Questions.



Rebate Scam Alert
Be aware that identity thieves are already pushing scams involving the stimulus payments. At least one telephone scam is making the rounds using the proposed rebates as bait. News release IR-2008-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting, has more details.

Free Help Available with Free File
Free File is the fast, easy and free way to file your federal income tax return. If your adjusted gross income was $54,000 or less in 2007, you can use Free File to prepare and e-file your taxes online.

If you normally don't file a tax return but need to file one for 2007 solely to receive your economic stimulus payment, you may now select from the list of companies on the Free File - Economic Stimulus Payment page.

Information For Businesses
IR-2008-22, 2008 Economic Stimulus Act Provides Tax Benefits to Businesses
News Releases, Audio Files, Fact Sheets and Legal Guidance
Check out the complete list of IRS-issued news releases, audio files, fact sheets and legal guidance related to the stimulus payments.

Flyers, Public Service Announcements and Other Products
The IRS is making numerous marketing products available to partners, stakeholders and other organizations seeking to ensure that all eligible people receive their economic stimulus payment.

En Español
Pagos de Estímulo Económico: Conozca sobre los pagos del estímulo económico, a cuanto ascienden los pagos y cuando estos se enviaran a los contribuyentes.

You win the lottery, and all of a sudden long-lost relatives and spamming Nigerian princes clamor for your attention. Now tax rebates have made all qualifying American taxpayers winners, and retailers their closest pals. USA Today rounded up store offers for spending those checks on gift cards with a cash or discount enticement. Travel marketers have also timed vacation specials to coincide with that check in the mail, offering cheeky promotions like "Economic Stimulus Package" and "Vacation on the Government Package." But not everyone wants you to buy, buy, buy: Some advise looking at the rebate not as a mini-windfall, but as an excuse to evaluate one's financial patterns. Oh, and that advice also comes with a pitch from financial planners.

Rebate Scam Alert
Be aware that identity thieves are already pushing scams involving the stimulus payments. At least one telephone scam is making the rounds using the proposed rebates as bait. News release IR-2008-11, IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting, has more details.

Political Price of Max Baucus' RebateMarch 31st, 2008 by Wiley Cody

If you owe the IRS money (back taxes), if you are behind on your student loans or child support, then the IRS will use the rebate to offset the amount you owe.

If you move in 2008, you will need to file a Change of Address (Form 8822) with the IRS to make sure they still get their rebate check.

You must have a valid Social Security Number (SSN) to qualify for the rebate. An Individual Taxpayer Identification Number (ITIN) does not qualify. In addition, if you file married filing jointly, both spouses must have a valid SSN. If only one spouse has a SSN, then neither spouse qualifies for the rebate.

Consumers can prepare, print, and E-file their Federal tax return online for FREE! Includes all the forms and schedules taxpayers need to complete their return. Automatically calculates the users return as information is entered and they can typically get their refund in as few as 9 days after e-filing!
Do you need to file in order to receive your stimulus payment? File for FREE with TaxACT!

The Yahoo! Success Kit provides proven techniques that could earn users $10,000 or more per month on Yahoo! Includes a 14 day free trial plus only $1.95 shipping and handling that gives access to a personal website, editing software at no cost, and access to the leading online discount drop shipping club on the internet.