What is it? It's an economic stimulus payment that more than 130 million households will receive starting in
May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you
owe when you file your 2008 return.
Are you eligible? You're eligible if you have a valid Social Security Number (SSN) and show qualifying income
of at least $3,000 on your federal tax return. Both people listed on a "married filing jointly" return
must have valid SSNs to qualify for the payment — if only one has a valid SSN, neither can receive
the payment.
How do you get it? Just file a federal tax return for 2007, even if you normally don't have to because your
income usually doesn't meet the filing threshhold. You can't get it if you don't file.
How much will you get? The actual amount depends on the information contained on your tax return. Eligible
individuals will receive between $300 and $600. Those who are eligible and file a joint return will
receive a total of between $600 and $1,200. Those with children will get an additional $300 for
each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a
valid Social Security number.
The payments phase out at certain income levels, so those with higher incomes may receive a
reduced payment or even no payment.
How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if
you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go
right to your bank account. Otherwise, you will receive a check.
What if some or all of your income consists of Social Security, veterans' or other benefits? The
economic stimulus law allows Social Security recipients and recipients of certain veteran's benefits
and Railroad Retirement benefits to count those benefits towards the qualifying income
requirement of $3,000. Supplemental Security Income (SSI) does not count as qualifying income
for the stimulus payment. To get the payment, you have to file a 2007 tax return using either
Form 1040 or the short Form 1040A.
Warning — Scam Artists Are Calling Taxpayers about the Stimulus Payments
If someone claiming to be from the IRS calls or e-mails you about the payments and asks you for a Social Security, bank account or credit card number, it's a scam. The scammers are trying to get your personal and financial information so they can empty your bank account, run up charges on your credit card and more.