Economic Stimulus Act Rebate Checks

Everyone is getting all kinds of information from thethey will only need to file the federal return in most
media. Here are the facts as I am aware of them.cases. A state return is not necessary.
The latest information is available at the IRS website.The rebate check is an advance payment against a
Rebate checks will be mailed/or direct deposited (I'vecredit which will be calculated on your 2008 tax
seen both answers) starting in May, 2008 andreturn. In most instances, the net impact on your
continuing through the summer months. Direct2008 return will be zero. However, when the actual
deposit would occur if you provided information tocalculation is done, it may result in you getting
direct deposit information when filing your 2007additional rebate against your 2008 tax or possibly
return. Checks or direct deposit will be remittedeven a reduction in the amount you should have
based on the order of 2007 tax return filings meaningreceived - thus causing you to owe some of the
you be receiving your check based on your 2007rebate check when filing your 2008 return. There is
return in the order 2007 returns are processed. Thisan income based phase out of the credit. If your
does not mean that money will run out if you don'tincome should increase for 2008, you may get the
file. It just means the sooner you file, the sooner yourebate check based on 2007 return information and
will be in the queue to receive your check.be disqualified when the computation is made on your
Senior citizens who would normally NOT file a return2008 return.
will need to do so in 2007 in order to qualify for theRebate checks will vary in amount. Most people will
rebate. There has been some confusion over this butreceive amounts per the following table. A
the IRS and most CPAs agree, this needs to becomputation can be made - once again estimated on
properly communicated to senior citizens. The lastyour 2007 tax return information. Several calculators
version of the law included senior citizens. Earlierare available and can estimate the amount you should
versions of the law did not include them and thusexpect.
caused much of the confusion. Keep in mind that