Economic Stimulus payment

Economic Stimulus payment is basically a rebate by the Federal Government which will be available to 130 million US households. The US Government has started sending this cash rebate from the month of May 2008. The amount of rebate depends on your income level. Each eligible individual may get a cash rebate ranging from $300 to $600 while each married couple who has filed tax returns jointly may receive the rebate ranging from $600 to $1200. In addition to this you may receive $300 for each qualifying child you have. Moreover, the individual must have a valid social security number and must not be claimed as dependent on anybody’s tax return. Qualifying child includes sibling, adopted child, nephew, niece or your own child who must have completed 16 years of age and has a valid social security number and is dependent on you as per your income tax return.

Now if you have already filed your income tax return for the year 2007, the IRS will automatically send you a check for the amount you qualify for the rebate. However, if you have not filed the tax return for 2007 yet, you should do it by 15th Oct 08 to avail Economic Stimulus payment. However, if you do not generally file a tax return but you think that you are eligible for this stimulus payment, you need to fill up form 1040A and write “Stimulus Payment” on it. This rebate is non taxable and will be treated just as any other tax refund.

For more information on Economic Stimulus payments you can visit the IRS website or call them at 1-800-829-1040.