Information about the 2008 Tax Rebates

If you’ve been following the news lately, you’re likely aware that Congress recently passed an economic stimulus package allowing many taxpayers to receive tax rebates this year. As part of the package, individuals could receive up to $600 and couples filing jointly, a maximum of $1,800. To receive the minimum rebate of $300 for individuals and $600 for couples, you must receive at least $3000 in income. Individuals earning more than $87,000 and couples earning more than $174,000 will not receive a rebate. For the purposes of the rebates, the IRS considers as income wages, railroad retirement benefits, some Veterans’ disability and survivor benefits, and Social Security retirement and disability benefits. Supplemental Security income and investment income are not considered income for rebate purposes.

In order to receive a rebate, you must file a tax return for 2007. If you have already filed, you do not have to file another return. Even if you earned too little in 2007 to file a return, you must file a return anyway in order to receive a rebate. If you normally do not file a return, the IRS recommends filing a 1040A form and writing “Stimulus Payment” on top.

If you are due a refund for 2007 taxes, your rebate will be sent separately. The IRS will begin disbursing rebate checks the first week in May. The Agency will set up a system, similar to what is currently available for refunds, to track rebate payments online.

For more information about the 2008 rebates, please visit the IRS website.

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