In a concerted effort to get the economy back on track, President Bush and Congress have approved the Economic Stimulus Act of 2008. This act provides eligible taxpayers with a one-time payment designed to give the economy a much-needed shot in the arm. Curious about exactly how the economic stimulus payments will work? The Internal Revenue Service has set up a variety of helpful tools on its Web site to guide taxpayers through the somewhat-confusing process.

According to the IRS, "more than 130 million households will receive" the economic stimulus payment. The payment, also referred to as a tax rebate, will be based on your 2007 tax return. Once you file your return, the payment is automatic and will be dispersed beginning in early May. To qualify for the payment, you must have a valid Social Security Number and be able to show qualifying income on your federal tax return of at least $3,000. Expect to get an amount equal to your tax liability on the 2007 return. If you file as an individual, you may be eligible to receive up to $600. For taxpayers filing a joint return, a rebate of around $1,200 may be anticipated. The economic stimulus payment won't affect your 2007 or 2008 refund.

You can find other tax-related resources at the IRS Web site, including an online calculator to try and compute the estimated amount of your stimulus payment.

--Morgan Schimminger
mschimminger@safnow.org

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