2007

You may be entitled to an economic stimulus payment of up to $600 ($1,200 if married filing jointly). To get your payment, you only need to file a 2007 individual income tax return (Form 1040, 1040A, or 1040EZ). The IRS will determine whether you are eligible, figure the amount, and send you the payment. The IRS will begin sending the one-time payments in May 2008. The economic stimulus payment is in addition to any 2007 income tax refund, which will be made separately from this one-time payment.

Generally, the payment cannot be more than your 2007 net income tax liability (your regular tax liability plus any alternative minimum tax (AMT), minus any nonrefundable credits you claimed other than the child tax credit). However, your payment will be at least $300 ($600 if married filing jointly) if you meet either of the following two conditions:

1. The total of your earned income, social security benefits (including social security disability payments), tier 1 railroad retirement benefits, certain veterans benefits, and nontaxable combat pay is at least $3,000, or
2. Your total income (Form 1040, line 22; Form 1040A, line 15; or Form 1040EZ, line 4) is more than $8,750 if your filing status is single or married filing separately ($11,250 if head of household; $14,100 if qualifying widow(er); $17,500 if married filing jointly), and your net income tax liability is more than zero.

If you meet either of these conditions, you can also get an additional $300 for each of your children who is a qualifying child for the child tax credit.

You may be eligible to get a payment of $300 ($600 if married filing jointly) even if you are not required to file a return. However, you must file a return to get your payment.

To be eligible, you and your spouse each must have a valid social security number. To get the additional $300 payment for a child, the child must have a valid social security number. You are not eligible to get a payment if you can be claimed as a dependent of another taxpayer, or if you file Form 1040NR, 1040NR-EZ, 1040-PR, or 1040-SS.

If your 2007 adjusted gross income (AGI) is more than $75,000 ($150,000 if married filing jointly), your payment will be reduced by 5% of your AGI in excess of that amount.

If you qualify to receive an economic stimulus payment, you will receive a notice shortly before the payment is made. For more information, visit the IRS website at www.irs.gov and click on "Rebate Questions?" at the top of the page.

14-MAR-2008

updated 27-MAR-2008