I’ve written about the economic stimulus rebate program a few times on my site, but I continue to receive a substantial amount of stimulus questions in the comments of the articles I have written and via e-mail. Because I have received a lot of questions, I thought it would be good to put the majority of them in one place so I can refer people to the FAQ section – hopefully helping a lot of people while also reducing my workload.
As a note, I try to respond to every reader e-mail/comment/question, and repeating answers can take up a lot of time! But I love reader comments and questions, so feel free to hit me up! (but if it is regarding the economic stimulus package, check this FAQ section first!).
Keep in mind, this information is gathered primarily from the IRS web page, and I am not a tax professional. So if you are in need of professional tax advice, please consult the IRS or a tax pro. 
What is the economic stimulus package?
The economic stimulus package is a change in the tax code that will eliminate the 10% bracket from 10% to zero for the first $6,000 of taxable income in 2008. But the government decided to do this based on tax filer’s 2007 taxes so they could distribute this money so tax payers would spend it now and (hopefully) boost the economy.
Who is eligible for the rebate?
The economic stimulus rebate check is available to qualifying tax payers, based on IRS calculations. Single tax filers with adjusted gross income (AGI) less than $75,000 and couples filing jointly with AGIs less that $150,000 will qualify for full rebates. Those with AGI levels above the maximum will receive a reduced rebate based on a phase-out schedule.
Persons who do not owe income taxes, but earned at least $3,000 in wages, Social Security benefits, or veterans disability benefits, will get rebate checks of $300 for individuals and $600 for couples.
Who will not receive an economic stimulus check?
You will not receive an economic stimulus rebate in 2008 if:
- Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.
- You can be claimed as a dependent on someone else’s return.
- You do not have a valid Social Security Number.
- You are a nonresident alien.
Keep in mind, the calculation will be run again in 2009, so if your situation changes, you may be eligible to receive a rebate at that time.
How much will I receive for the rebate?
Qualifying single filers (AGI less than $75,000) will get rebates of up to $600. Qualifying couples (AGI less than $150,000) will get rebates of up to $1,200, plus $300 per dependent child younger than 17, with no maximum number of eligible children. The rebate starts out at $300 per person, but rises to $600 per person to match the taxes you will pay based on your 2007 Adjusted Gross Income (AGI).
Your AGI is generally lower than your salary, and is based on your earnings after tax deductions such as 401(k) and Traditional IRA investments and other qualified deductions. However, if you earn above a set limit, you may receive less than $600. The tax rebate decreases by $50 for every $1,000 earned above $75,000.
I recommend using the official stimulus rebate calculator (calculator removed from IRS website) for a better idea of how much you might receive.
What do I have to do to get my rebate check?
If you file taxes in 2007 and qualify for the rebate, it will be automatically sent to you. To receive the economic stimulus rebate, you are required file a 2007 tax return, either a form 1040, 1040A or 1040-EZ. If you are someone who normally doesn’t file a tax return (for example, a pensioner, retiree, of someone whose income is based on Social Security, military veteran’s disability, or other income), you will need to file a tax return in order to receive the rebate.
Will I receive my rebate check via direct deposit or by mail?
Stimulus Payments will be direct deposited for taxpayers who select that option when filing their 2007 tax returns. Taxpayers who already filed and requested direct deposit won’t need to do anything else to receive the Stimulus Payment. Taxpayers who did not request Direct Deposit for their 2007 refund, or provide their bank information to the IRS if you paid taxes, will receive a paper check by mail.
I received my refund on a prepaid debit card – will my rebate check some the same way?
Those who received their tax refund on a prepaid debit card from a tax preparation company will receive their rebate by mail. They will receive a check sent to the address on their return. Refund anticipation loans for the stimulus check are not allowed by the IRS.
What if I earned more than the maximum income?
If you earned more than the maximum, you may still be eligible for a refund check. However, it will be reduced by 5-percent of the amount you earned above the AGI income cap of $75,000 for a single filer or $150,000 for couples. The rebates will follow this formula until it phases out, and those earning above the phase out level will not receive a rebate check.
For singles, the phase-out level begins at $75,000 and ends at $87,000, with a reduction of $50 for every $1,000 earned over $75,000. If you earn above $87k, you will not receive a rebate.
For couples, the phase-out level begins at $150,000 and ends at $174,000, with a reduction of $50 for every $1,000 earned over $150,000. If you earned above $174k, you will not receive a rebate.
Will I receive the economic rebate if I am someone’s dependent?
If you are over 17 and are a dependent, neither you or your parents will receive a rebate, even if you earned enough money to qualify for the rebate. This will affect many high school and college age workers who worked last year and earned the minimum amount to receive the rebate.
However, keep in mind, the rebate is based on your 2008 income, and the rebate calculation will be run again when your taxes are due in 2009. So if your dependent status changes between now and the time you file taxes next year, you may still receive the rebate in 2009.
When will I get my economic stimulus rebate check?
If you filed your tax return by the April 15th deadline, you will receive your rebate check automatically starting May 2. For those who elected to receive their rebate check via electronic deposit, checks will begin being sent by the IRS on May 2nd. For those who will receive their check via mail, the checks will be sent starting May 16. If you filed your taxes late or filed for an extension, you may not receive your rebate check for several weeks after you file, and there have been some reports that it may take several months to receive your rebate.
Update: The economic stimulus checks will be sent out a week early.
I did not receive the economic stimulus rebate letter in the mail. Will I still get the rebate?
Yes, you will. The letter was only sent out to remind people what was happening and to explain when the rebate checks will be sent. The rebates will be sent automatically, so there is nothing you need to do to receive your check.
What if I moved?
To ensure you receive your rebate, you will need to file a Form 8822 with the IRS and a change of address notice with the U.S. Postal Service. This will ensure your check is sent to your new address. Without your current address, the check could be returned to the IRS as undeliverable. You would still get it, it would just take longer because it would have to go through the IRS system.
How does the rebate affect my taxes in 2009?
There is some misconception about the stimulus package; it is not a loan on your 2009 taxes. You do not pay it back. The IRS eliminated the 10% bracket for the first $6000 of taxable income (AGI). The rebate is a credit to reflect the new tax laws.
If you did not qualify for the rebate based on the taxes you filed in 2008, but your situation changes when you file your taxes in 2009, you may be eligible for the difference if it is in your favor. If the change is not in your favor, you will not have to pay the difference.
I am having wages garnished by the IRS. Will this affect my rebate check?
It may. If it does, the IRS will send you a notification letter explaining where the money went and why. Some examples of this could be past due taxes, student loans, wage garnishments, or child support. If you have further questions, contact the IRS.
Can I use the money from the rebate check for whatever I want?
Yes, you can. Once the money is sent to you, it is yours to do with whatever you want (though if you have legal obligations to take care of, you might want to do that). I ran an economic stimulus poll on my site regarding how readers plan on using their rebate checks. This is a completely unscientific poll, but over 500 people have responded. So far, over 40% of the responses indicate the reader will use the rebate check to reduce debt. Saving/Investing follows that with 31%. Feel free to leave your vote if you haven’t already!
I filed for an extension on my taxes. Will I still receive the rebate?
Yes. The rebates are based on taxpayers’ 2007 tax returns. Those who file extensions or file late would likely receive their checks later than regular filers, a U.S. Treasury spokesman said last week. The checks will be sent out automatically; taxpayers don’t need to apply.
Can I check the status of my rebate with the IRS?
You can easily check the status of your rebate at the IRS website. The IRS created a web based tool to help you track the status of your economic stimulus rebate. You will need to have your tax return handy because you will need to input some key information from your return, including your SSN, filing status, and number of exemptions. The tool will locate your information in the database and give you the status of your rebate.
Important note about rebate tracker: The IRS recommends using the Payment Schedule prior to using the payment tracker since your payment information will not be available on this tool until the time that your payment is scheduled.
My rebate was lower than it was supposed to be!
There could be several reasons, such as the amount of taxable income you earned, any back taxes or other obligations that may have been owed the IRS, or something else. Also, if you primary form of income was from Social Security or Veterans Disability, it is likely you will only receive $300.
I recommend using the official stimulus rebate calculator, then contacting the IRS if the numbers are different. Good luck.
Is my rebate check taxable?
No! 
Update: The economic stimulus checks will be sent out a week early.
Will there be another stimulus check?
There have been a lot of questions regarding another stimulus check. I have covered that topic in the following articles:
- Obama Proposes $1000 Stimulus Check.
- Do We Need Another Stimulus Check?.
- Why I don’t think we need a second stimulus check.
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HI. My questions are: is there anyone who is married filed a joint return, along with a injured spouse claim whom maybe owed past child support,then got a letter saying they were owed 1,800 ,then ended up not getting anything?? Also is there anyone whose check was reduced because of overpayments due to your state for unemployment benefits?? Also last but not least ,how long after recieving the letter do you get your check??
Sorry so many questions!!!
Heather,
If you owe money to your state, your rebate ill most likely be garnished. That could be why someone would receive a letter stating they would receive $1,800, but hen receive nothing. The same thing goes for child support. The rebate money can be garnished for that as well.
You should receive the money within 6 weeks of the date stated on the letter. If you have not received it or if you have any other questions, I recommend contacting the IRS at 1-866-234-2942.
we never have had anything taken out of our federal taxes for my husbands unemployment overpayments.They do take our state tax. This would suck if all the sudden the laws changed!!Or is it just the stimulas that they are allowed? What sucks is, we have had the state take our taxes for the last 5 yrs!!We have no idea how much we have left,but we were pretty sure it should of been over by now.It was only about 1500.00.
My mother recently passed away on December 9th. My dad however was able to file a final joint return. Consequently, he only receieved $600 for the rebate. It was my understanding since he filed a joint return, his rebate should have been $1200.00. Please comment, should I attempt to contact the IRS to confirm if the amount he received is accurate?
Cookie,
You should certainly look into it. I recommend using the official stimulus rebate calculator for a better idea of how much your father should have received. If that gives you a different number than the IRS sent you, try calling the IRS at 1-866-234-2942.
Good luck.
Heather,
I was on unemployment benefits about 2 years ago, and based on my experience, you are required to pay both state and federal income tax on unemployment benefits. The problem is, most states do not automatically take the taxes out for the person receiving unemployment benefits, but leave it up to them to pay the taxes when they file. This can leave people with a big tax bill.
I’m not sure the laws changed for this. It is possible that the taxes were not paid when the unemployment benefits were paid out, and now the taxes are due.
My stimulus check has been misplaced, either kids?, I have torn my house apart. Does anyone know if they will cut another one as long as it was not stolen or been cashed? We are going on vacation in a week and that was our money
‘What about the ones that have already gotten their checks but only received for one child and not 2? It was to be 600 for the adult and 300 per child. he only received 900 instead of 1200. well it be made up later on>
Patti,
I’m not sure what happened. There have been a few cases where the IRS had made mistakes in their calculations, and some instances where people thought they would receive a different amount. I recommend using the official stimulus rebate calculator for a better idea of how much you might receive. If that gives you a different number than the IRS sent you, try calling the IRS at 1-866-234-2942.
Good luck.
Teri,
The IRS may replace the checks, but I am not sure what the process is. Try calling the IRS at 1-866-234-2942. It will probably take longer than a week to resolve the issue though. Good luck.
I received a notice in the mail for my stimulus check, and it was only for $338. I owe nothing in loans, to the IRS and made well over $3,000 in 2007…but not $75,000. I don’t understand why I am not receiving the whole $600. I am only 20 years old and there’s nothing that I am aware of that would be keeping me from the full amount.
Andrea,
If your parents could claim you as a dependent on their taxes, that would affect your return. Other than that, I’m not sure what it could be. I recommend using the official stimulus rebate calculator for a better idea of how much you might receive. If that gives you a different number than the IRS sent you, try calling the IRS at 1-866-234-2942.
Good luck.
i had to file a correction to my income tax statement. When will i receive my stimulus check?
What if the check is lost before being cashed?
will there be a second stimilus payment
I RECEIVED MY LETTER STATING THAT I WOULD RECEIVE THE STIMULOUS CHECK, ON OR ABOUT JULY 10, AND CALLED THE GIVEN NUMBER TO NOTIFY THE IRS THAT I DID NOT WANT DIRECT DEPOSIT, BUT RECEIVE A PAPER CHECK ASAP.
i HAVE HAD NO RESPONSE FROM THEM, NOR HAVE I RECEIVED THE CHECK.
MY LAST FOUR S/S NUMBERS ARE 2665.
Thomas,
the best I can do is recommend calling the IRS at 1-866-234-2942 for more information. Good luck!
Will people who are behind in their child support get a stimulas check?
Jeanine,
If the IRS has been made aware that the tax filer is delinquent on child support payments (or student loans, taxes or some other obligations), they will likely garnish the stimulus payment. This is called the Treasury Offset Program. If your money was scheduled to be garnished, you should have received a notice.
I am writing for my mother in law, she made a mistake on her original filing. Had to re-file.(not sure of the date of re-filing) She called me today,Aug.8,2008 and still has not recieved her rebate or a letter about it.Whats the hold-up? any reply would be helpful.
Thanks, Chris
Is there a way to make the IRS aware that someone is behind in their child support. Is there an estimated time frame of when that Treasury Offset Program is to release funds?
Chris,
It really all depends when she filed her corrected tax return. The IRS has stated stimulus checks for corrected returns will be sent out approximately 2-6 weeks after the corrected tax returns are received. If she hasn’t received it by then, I recommend contacting the IRS at 1-866-234-2942. Good luck.
Jeanine,
I believe the state where the child support is owed must contact the IRS for the Treasury Offset Program to garnish the tax refund or rebate of someone who is past due child support. For more information, contact your state’s child support enforcement office or call the Treasury Offset Program Call Center at 1-800-304-3107.
I imagine it may take several weeks or more for this to get worked out, and it the tax return or rebate has already been paid it may be too late for this year.
I wish you the best.
i inadverently submitted 2 tax returns for the stimulus payment, was suppose to receive my money july 11, have phoned irs 3 times and have gotten 3 different dates as to when i would receive my check am senior did about 8 tax returns for persons in my building did not make copy of my own and so submitted another at any rate my last call last week said i would receive my payment august 11 went into where is my payment and still says delay in processing any help with this problem thank you
Terri,
You have already done all I can recommend you do, which is contact the IRS. When there are errors in the processing, there will be delays. Unfortunately, I have no idea how long those delays will be. Good luck.
i received a letter in june saying my stimulus check was being mailed. it is now almost the end of august and i have not received it. every time i call the 800 number i am told my request cannot be processed. help please
Geraldine,
I don’t have any advice other than to contact the IRS. Your best bet is to speak to a person. The number I have is 1-866-234-2942.You can also try the official IRS FAQ page. Good luck!
Per my divorce agreement, my ex-husband and I trade claiming my son every other year as a dependent. He received the $900 stimilus payment based on his 2007 claim of my son as his dependent.
1-Is this a one-time payment, so that next year I will get it?
2- If not, is there any reason why I shouldn’t ask him for half of the $300?
I’m sure that this is a concern shared by many others.
Thanks
I heard we are getting an other check the first part of Nov. I hope it’s true, it’ll be just in time for Christmas. That will help the retailers.
Harry,
Congress has not voted on a second stimulus check, though there is talk of it among the Presidential candidates. Right now Obama supports a second stimulus check. While it might seem like a good idea on the surface, I don’t think it is a good idea, and it can actually hurt the economy. You can read more about why I think it is a bad idea.
If we do get a second stimulus check, it will likely be several months after the election is complete.
jwm: The stimulus rebate is a permanent change to the tax code, so you will receive the benefit next year. However, since the benefit will be written into the tax code, it won’t appear like you are getting an additional rebate check. Instead, it will be figured into the taxes you pay all year. So, yes, you get the benefit. But it will not come in the form of an additional check.
My ex passed away in April. He did file his taxes and a $600 check came to my house made out in his name. Shouldnt this check go to our son who is 12? How do i go about returning it or who can i call?
Karen,
I’m sorry to hear about your loss and I apologize for taking so long to respond to you. I believe the check rightfully belongs to his heirs, which is determined by his will or by law, however, I am not 100% certain and I recommend calling the IRS at 1-866-234-2942 for confirmation. Good luck.
I filed single head of household – I did not get a rebate becaue of my AGI…over 87K. I do have three children under the age of 8, should I have received somthing for the children?
Dean: I believe the rebate is based upon your income – and is higher if you have qualified dependents. Since you don’t qualify for the rebate based on income, I don’t believe you will receive anything for your children either. I would double check with the IRS for verification.
I made a mistake on my 2007 tax return (marked myself as a dependent, when I was not), thereby disqualifying me from receiving a rebate. The mistake has been corrected, but I have not received my rebate. Will there be a way for me to receive this rebate when I file my 2008 taxes?
Michael: It’s too late to have anything done this year, and I think I read something about the IRS not making corrections when the error was the fault of the tax filer. If you do receive the rebate, it will likely be on next year’s taxes. I would contact the IRS or a tax professional for verification. Good luck!
My Offer in Compromise was accepted in 2007. In the compromise it stated that as additional consideration the IRS would retain any refunds or credits for which I may be entitled for 2007 or earlier tax years. The IRS has said that I am entitled to a rebate but the rebate will be retained by the IRS because the rebate is based upon 2007 tax return. My understanding is that the rebate is for 2008 taxes, specifically the repealing of the 10% tax on the first $6000. Am I correct and who should I contest this with?
Wilson: My understanding is that the rebate is for 2008 taxes as well (but given in advance due to a change in the tax laws). I would contact the IRS or a tax professional regarding your specific issue.
what if you did not work in 07 and i recently started working in early may 08 do i qualify for rebate check in 09. i make about 1 thousand seven hundred a month but will not be working a full yr since i just started in may. Will this hinder me from getting a check. and im claining single 1
John: The rebate is the result of a change in the tax laws which was made retroactive to the previous year. The rebate that was given in 2008 is now part of the tax law and as a result, people will pay less on their taxes in April 2009 (from 2008 income). But the new tax laws mean the rebate won’t be given in 2009.
However, the government is considering a second stimulus check.
SO IF I WAS CLAIMED AS A DEPENDENT ON LAST YEARS TAXES…BUT IM FILING FOR MYSELF THIS YEAR WILL I STILL QUALIFY FOR THE SECOND STIMULUS CHECK?
Hello Piffany, There is no second stimulus check at this time. Obama has discussed it, but nothing is official at this point.
Thank you Ryan for all this info. Have a happy 2009.
As of today january 15,2009 are they thinking of giving a second stimulus check, the people need it. We are helping the auto makers but what about the people whoare losing jobs and there homes, i thought obama was going to make a change.
Stacie: Obama wants to make change, but as of today he isn’t yet the President of the United States. Once he becomes President it will take some time before he is able to implement change.
President Elect Obama and his administration are considering a second economic stimulus check, but it looks like it will be in the form of a tax credit instead of a check that will be mailed to people.
I did not receive a stimulus package last year because in 2007 I retired and received a lump sum in “07″ it wasn’t that much “after taxes” but enough that would not give me the package (which is unfair) since I don’t make enough on SS in the first place. Can I ever get this or a part of this back? Also this “09″ package will it be based on again the “07″ taxes or last year (which I have yet to file)? I really feel I was wronged by not receiveing anything when others got so much? Please help me and tell me who to write to who to talk to etc….thank you.
James: If you did not qualify for the rebate based on the taxes you filed in 2008 (from 2007 income), but your situation changes when you file your taxes in 2009 (2008 income), you may be eligible for the difference if it is in your favor. If the change is not in your favor, you will not have to pay the difference.
I recommend speaking with a tax professional or the IRS. Good luck, James.
I filed Chapter 13 in May of ‘08 and the payback plan was approved in June of ‘08. The monthly payments are deducted from my checking account monthly. I lost my job in September of ‘08 (collecting unemployment) but have continued to make the monthly payments. Will I still receive a stimulous check? This is concerning the second stimulous that Obama is suppose to be issuing this year 2009.
Jackie: So far, no 2009 stimulus has been approved. Right now the government is still discussing it, but it has not been voted on. Good luck with your employment situation – I hope you find something soon!
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