·         The government will automatically issue rebates by check or by direct deposit payment based on information reported on your 2007 tax return (income, tax liability, and qualifying children).

·         The IRS issued a press release stating that even though some recipients of Social Security, Railroad Retirement and veterans' benefits may not be required to file a tax return because they don't meet the requirements, they must file a return this year to receive payments.

·         Most individuals won't get their rebates until after filing Form 1040 for last year. If you request an extension and don't file your 2007 tax return until October 15, 2008, you won't get a rebate until the end of the year.

·         If you had a modest amount of earned income last year but are not required to file a 2007 return, the IRS will develop a procedure that allows you to get your rebate in a timely fashion.

·         You cannot use your rebate to offset your 2007 federal income tax bill, nor can you apply your rebate to your 2008 estimated tax payment obligation. Why? Congress wants you to spend your rebate dollars to boost the economy.

·         Second Chance Rule-Some people will get a second bite at the apple based on information reported on their 2008 tax returns. For example, this "second chance" rule will apply if:

Your 2007 income was too low or too high.

Your 2007 tax liability was too low to qualify for the full $600 or $1,200 basic rebate amount.

Your 2007 income was too high to qualify for the full $300 per-child rebate amount.

In such cases, you can collect in 2009 the difference between the amount already received in 2008 (if any) based on 2007 tax return information and the larger amount based on 2008 tax return information. The amount you are entitled to receive under the second chance rule will be treated as a refundable tax credit on your 2008 return. The same second chance rule also applies to amounts based on Social Security or Veterans' benefits.

·         Nonresident aliens, estates and trusts cannot receive rebates. In addition, no rebate is available to an individual who can be claimed as a dependent on another taxpayer's return (for example, a college student with more than $3,000 of earned income who could be claimed as a dependent on a parent's return).

·         Taxpayers without Social Security numbers cannot claim rebates, and numbers must be provided for qualifying children. Individual Taxpayer Identification Numbers cannot be substituted for Social Security numbers.