How to get a Tax Rebate or Stimulus Payment? What is it? How much is the payment? Will the Rebat affect my 2007 or 2008 Tax Refund? Who is Eligible for the Tax Rebate? Who's not? What if I need help to fill out my Tax Return 2007? When and how do I receive my Payment? How do I know the time my Payment will arrive?

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>What is it?
>How much is the Payment?Will the rebate affect my 2007 or 2008 tax refund?
>Who is eligible?

>Who is not eligible?
>What do I have to do to get the Payment?
>What if I need further help to fill out my tax return 2007?
>When and how do I receive the Payment?
>How do I know the exact time my Payment will arrive?
>>Scroll down for the answers

What is it?
It is an economic stimulus payment for more than 130 million households.

How much is the Payment?

In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child under the age of 17 in 2007. Payment could be less, depending on tax liability and Adjusted Gross Income (AGI). Phaseout reduction begins at $75,000 for single and $150,000 for joint filers. Your rebate is reduced by 5 cents for every $1 you make over those thresholds.

Will the rebate affect my 2007 or 2008 tax refund?
There will be no effect to 2007 tax returns, the rebate is an advance, tax free credit payment against your 2008 income. The stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.
You should keep a copy of the IRS letter you receive later this year listing the amount of your payment. If you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Who is eligible?

  • Most people with a net income tax liability will qualify, if you have at least $3,000 in income.
    Income for this purpose includes

    • Wages reported on Form W2.
    • Net self-employment income.
    • Certain railroad retirement benefits in box 5 of the 2007 Form 1099 RRB, which recipients would have received in January 2008. For more information click on this IRS link: Recipients of Railroad Retirement Benefits.
    • Certain disability and survivor benefits from the Department of Veterans Affairs. People who weren’t required to file a tax return can estimate their annual veterans’ benefits by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit. For more information click on the lIRS ink: Recipients of Veterans' Benefits.
    • Social Security benefits reported in box 5 of the 2007 Form 1099-SSA which would have been received in January 2008. People who do not have a Form 1099-SSA may estimate their annual Social Security benefit by taking their monthly benefit and multiplying it by the number of months during the year they received the benefit. For more information click on the IRS link: Recipients of Social Security Benefits.
    • Nontaxable combat pay if the taxpayer elects to include it as earned income.
    • (Supplemental Security Income or investment income is not income for this purpose!.)
  • Families with qualified children under 17 before Dec. 31 2007, generally will qualify for an additional payment.
  • you must have a valid Social Security Number (SSN) to qualify for the payment; if you file jointly and one of you has an invalid SSN, neither can receive the payment. If you file for qualified children, the children must also have a valid SSN to receive payment.

Who is not eligible?

  • If you don't file a 2007 tax return.
  • If your net income tax liability is zero and your qualifying income is less than $3,000. See in the question above what income is for this purpose.
  • if you can be claimed as a dependent on someone else's tax return.
  • Kids above 17 years of age before Dec. 31 2007.
  • If your AGI is more than $87,000 for a single filer and more than $174,000 for married joint filers.
  • If you or your qualified children under 17 haven't got a valid Social Security Number.
  • If you file Form 1040NR, Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007. Click on a link to select and open the PDF file with the form you need.
  • If you are a nonresident alien.

What do I have to do to get the Payment?
If you are eligible (see above) you have to file a federal tax return 2007 before April 15 2008, even if you normally don't have to because your income usually doesn't meet the filing threshold. The sooner you file the sooner you can receive your stimulus payment. If you already filed your 2007 tax return reporting at least $3,000 in qualifying income, you do not need to do anything else. You will receive your stimulus payment in May.

You can file your Federal Income Tax 2007 by using the IRS Free File to prepare and e-file your taxes online. You can download the form as well on the IRS-site by clicking on this link: Federal Income Tax Form. Your Net income tax liability is the amount shown on form 1040, Line 57 plus the amount on Line 52.
After April 15, you can apply for an extension of time with form 4868 until October 15, 2008. You receive your stimulus payment then before the end of the year.

If you normally don't have to file a tax return you can use a short form for the stimulus payment. Do the following:

  • Write 'Stimulus Rebate' across the top of Form 1040 or the Form 1040A.
  • Fill out your name and address at the top and your Social Security Number at the top right.
  • Choose a filing status box: 1,2,3 or 4.
  • At line 6a choose yourself and - if applicable - a spouse.
  • If you are using the regular Form 1040, you would put your yearly total Social Security on line 20A. You can leave the “taxable amount” box on line 20B blank.
  • If you are using the Form 1040A, enter your yearly Social Security total on line 14-A and leave 14-B (the taxable amount) blank.
  • Turn the form over and sign and date your return at the bottom of the back of the page. It's ready to mail to the IRS office of your area.

What if I need further help to fill out my tax return 2007?
The Volunteer Income Tax Assistance (VITA) program provides help to low- and moderate-income taxpayers. 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.

When and how do I receive the Payment?
The rebate won't be lumped together with your regular tax refund. You'll receive a separate payment. The earliest rebates will be received in the first week of May by those who used direct deposit when filing their 2007 returns on time. Even if you're not due a refund for 2007, you can make sure the rebate is directly deposited into your account by filling out the bank routing information. Those who don't use direct deposit will start receiving paper checks the second week of May. If you've moved since filing your 2007 tax return, make sure you send the IRS a change-of-address form 8822 so you receive your rebate

How do I know the exact time my Payment will arrive?
The IRS plans to set up a system where you can check online to find out when you'll receive your rebate, similar to how you can now track your refund online.


  • Economic Stimulus Payment Information Centre of the IRS
  • Yahoo Finance: Tax Rebate Winners and Losers
  • Chicago Tribune: IRS clarifies who gets how much