Economic Stimulus Act of 2008: What You Need to Know to Get Your Check

If you're like most Americans, you've heard the pleasant news that we're all supposed to be receiving a check in the mail from the government. However, the who, what, when and where seems to vary depending on who you ask. So, what is this thing all about? Are we really just getting random money from the government? The answer is Yes - through the Economic Stimulus Act of 2008.

What is the Economic Stimulus Act of 2008, anyway?

On February 13, 2008, President Bush signed the Act, which will allow most Americans to receive a "tax rebate check", according to CNN.com. These rebate checks will be completely separate from tax refund payments. The President described the payments as a "booster shot" for the economy, intended to prevent or shorten any oncoming recession. In other words, if Americans spend the bulk of the $120 billion which is being sent to them, it should "stimulate" our economy, hence the name.

How much money am I going to get?

The quick answer, according to CNN, is $600.00 for an individual and $1200.00 per couple. However, there are several factors which can raise or lower your tax rebate check. The IRS website lists several of these. For instance, having a gross income which is too high or having no tax liability for 2007 can negatively impact your rebate. And having children can positively impact your rebate. For the most accurate estimation of what your rebate check will be, use the Economic Stimulus Payment Calculator on the IRS' website.

When and how am I going to get the tax rebate payment?

According to the IRS, they will start sending out tax rebate checks in May. Those who filed their taxes early will be the first to receive their rebates. When you filed your tax return, you will have opted whether or not to use direct deposit for your refund. If you chose direct deposit, then your tax rebate will be direct deposited, as well. If you did not, then you will be receiving a check to the address listed on your tax return.

Do I need to do anything to make sure I get my tax rebate payment?

Yes. The IRS advises that you must file a 2007 tax return in order to receive a tax rebate payment, even if you are not otherwise required to do so. You do not need to calculate your payment and advise the IRS of the amount - they will figure it automatically from your 2007 tax return. If the bank account which you had your tax refund direct deposited into is now inactive, you will receive a paper check to the address listed on your return. If your address has changed, then you need to file a Form 8822 with the IRS immediately. Also, don't forget to register your change of address with the U.S. Postal Service.

Sources:

http://www.irs.gov/newsroom/article/0,,id=179181,00.html
http://www.irs.gov/app/espc/
http://www.cnn.com/2008/POLITICS/02/13/bush.stimulus/
http://www.cnn.com/2008/POLITICS/02/13/bush.stimulus/