Branscome: Hi, I'm Theresa Branscome from the Internal Revenue Service. Many of you have questions about the economic-stimulus payments, also known as rebates. Well, here to answer your questions is the chief of IRS Communications and Liaison, Frank Keith. Welcome, Frank.

Keith: Hey, Theresa, how are you?

Branscome: Doing fine. I'm glad you're here. We have a lot of questions. First of all, how do you know if you're eligible?

Keith: Well, the easy answer is most people are. If you're filing a tax return, if you filed a tax return in the past and you expect you're gonna be filing a tax return this year, you're gonna pretty much be eligible. And taxpayers simply file the return. We look at it. We can determine, based on the return, whether you're eligible, how much the rebate's gonna be, and we'll send it to you automatically. So in general, people who file a tax return that shows some kind of tax liability, they're filing it with a valid Social Security number, more likely than not, they're gonna be eligible for the stimulus payment this year.

Branscome: So bottom line, all they need to do is file a return.

Keith: That's right. All you need to do is file the return as you normally would. IRS has all the information on the return to determine, number one, whether you're eligible and, number two, how much the payment's gonna be, and we'll send it to you automatically.

Branscome: Okay, speaking of how much, how much will the payments be?

Keith: Well, it's gonna vary. For single people, it's probably gonna range between $300 and $600. For married couples who file a joint return, it gets a little higher. It could be as much as $600 to $1,200. But you have to remember, that amount could be increased, depending upon the number of qualifying children the taxpayer is claiming, because you get an extra $300 for each qualifying child that you put on the return.

Branscome: All right, and how will taxpayers get their stimulus payments?

Keith: Well, they're gonna get the stimulus payments, actually, the same way they probably are getting their refund. If you elect direct deposit on the return that you file, your refund will be sent electronically into your savings account or your checking account. If you make that election, we'll do the same thing with your stimulus payment. So perhaps more than ever this year, it's important for people to elect direct deposit. It not only speeds your refund, it will also speed up your stimulus payment.

Branscome: Now, will the payment come at the same time as your tax refund?

Keith: No, and it will be two separate payments. You'll probably get your refund in the normal time -- four to five weeks, perhaps sooner if you file electronically and elect direct deposit. The stimulus payments we expect to begin mailing the first week in May, and it will take us several weeks to get all the checks out into the mail or electronically deposited.

Branscome: All right, now, what if you don't have enough income to file a return? Like you get benefits from Social Security, Veterans Affairs, or Railroad Retirement.

Keith: Well, this is an important part of the rules around the rebate. I said earlier that the requirements are really simple -- simply file a tax return. But the way the law is written, there are millions of Americans who don't file a tax return because they don't have enough income -- they're not required to file. But they will be eligible for the stimulus payment, but they have to file a return to do so. And the population I'm talking about, these would be people who have some combination of earned income, certain Social Security benefits, and certain disability payments from the Veterans Administration that total $3,000. And certainly, most Social Security recipients receive at least $3,000. Low-income workers might also qualify. And of course, many veterans might also receive $3,000 in just VA benefits alone. Now, they may not have to file a tax return, but they have to file a simple 1040A in order to be eligible for the rebates this year.

Branscome: Is there a way to do this electronically?

Keith: Actually, there is. Many of these people will also qualify to file electronically for no charge by going to the IRS website at irs.gov and looking at our Free File page. Several of the providers of the Free File service have set up special programs to allow people who are filing strictly for the stimulus payment to be able to file their return electronically.

Branscome: Now, if this is confusing to folks, is there any help out there?

Keith: I think there's a lot of help. The IRS website is perhaps your best resource -- irs.gov. Right off the front page, you can click, and you'll get information on our stimulus page that really answers all your questions. We have a number of fact sheets. We have Q's and A's. We have brochures, and we have flyers. And I think most people, if they go, will get all the information they need. One other thing I think that's important for those people who receive Social Security or VA benefits, we're actually doing a special mail-out to them. We've combined our files with Social Security files to try to identify about 20 million people who receive Veterans and Social Security benefits, but we know that they don't normally file a tax return. So we've put together a special package for them that really has absolutely everything they need to file a return and claim the stimulus payment. A simple form, simple instructions. It even has a self-addressed envelope for them to mail in the return.

Branscome: I have one final question. Some people have been getting calls from folks claiming to be the IRS, asking for people's bank information so they can get their rebate payment. What about that?

Keith: Well, unfortunately, that's a scam, and there are people who are trying to exploit the situation, and everybody needs to be very careful, not only when dealing in taxes, but in other matters. And the important thing to know is that the IRS is not going to call you or send you an unsolicited e-mail, asking for information. And the only way you can get your rebate, no matter what anybody else may tell you, is to file a tax return for tax year 2007. And if you're really not sure, go to irs.gov. You'll get the information there you need to make sure that you do the right thing.

Branscome: Well, Frank, this was excellent information. Thank you so much.

Keith: Thank you.

Branscome: And thank you all for joining us. I'm Theresa Branscome. You can get all the particulars on the stimulus payments on the IRS's official website, www-dot-irs-dot-gov.

Audio File: 2008 Economic Stimulus Payment - Theresa Branscome from the Internal Revenue Service joined by Frank Keith, 6:14 minutes long. The audio file will open in Windows Player, and you will be able to pause, fast forward, rewind, mute, and control the volume from the interactive player.

IRS Tax Tip 2008-Special Edition – Don’t Miss Out On Your Stimulus Payment

Podcasts and Text Scripts of Audio Interviews 2008