President Bush signed the Economic Stimulus Act last week, saying it should pump $152 billion into the economy. The News On 6's Dan Bewley reports the IRS says the rebate is a simple plan, but still some folks have a number of questions.
Officially signed on Wednesday, the Economic Stimulus Act of 2008 is meant to infuse billions of dollars into the country's economy.
"The good news is most taxpayers will need to do nothing other than file 2007 federal income tax returns as they normally would. Once that's accomplished, the IRS will take it from there, will calculate the rebate amount, and mail the check out," said IRS Spokesman David Stell.
David Stell says the amount of money you receive is based on how much tax you owe on your 2007 federal return.
"When you file your 2007 federal income tax return it will show a tax balance due. For a single individual, if you paid taxes more than $600, you're likely going to get a $600 rebate check. If you paid taxes more than $1,200 on a joint return, you're likely going to get a $1,200 rebate check," said Stell.
For those who don't file a federal income tax return, such as a retiree, Stell says they can also expect a check. If you get at least $3,000 in social security, railroad retirement, or veteran's benefits, you're eligible for the minimum rebate; that's $300 for a single return or $600 on a joint return.
The IRS says the bottom line is to file your taxes.
"The most important thing to know is get your federal income tax filed by the April 15th deadline. The longer you wait to file, the longer you wait to get your rebate checks since the rebate check amount is calculated based upon your 2007 federal filing," said Stell.
The checks will start being mailed in May and should take until mid-summer to get all of them out. The rebate is not considered taxable, meaning it won't be counted against you on your 2008 tax return.