As of the second of May, the IRS will begin providing 130 million American households with economic stimulus payments, also referred to as tax rebates.

Generally, the rebate amount is $600 for an individual or $1200 for a married couple, plus $300 for each eligible child under the age of 17. The rebates are, however, limited to earned income, and also phase out for high-income Americans. You must file a return to qualify for a rebate, and if you earned less than $3,000 in income during 2007 you may not be eligible.

If you'd like to know more about the eligibility rules, or the rebate amount for which you qualify, you can refer to the article entitled Questions About Your Rebate? in the February 18 issue of Bader Martin's newsletter: http://www.bizactions.com/index.cfm/ba/e105/fa/78585888G1023J630868P0P10072143T0/.

The IRS's Rebate Schedule
On March 17, the IRS announced its anticipated schedule for providing tax rebates.

When you get your rebate will depend on several factors: when you file your 2007 tax return, the last two digits of your Social Security number, and whether you are getting your return by direct deposit or by a paper check by mail.

Rebates for Tax Returns Processed by April 15
If your 2007 tax return is received and processed by April 15, your rebate will be sent according to one of the schedules below.

As long as you provided the IRS with direct deposit and bank routing information on your 2007 return―whether you're receiving a tax refund or you owe taxes this year―you'll be among the first to receive a rebate.  

For Direct-Deposit Rebates
Last Two Digits of the Social Security Number	Rebate Payment will be Transmitted
00 through 20	May 2
21 through 75	May 9
76 through 99	May 16

If you didn't provide the IRS with direct-deposit information, you'll receive your rebate in the mail, according to the following weekly schedule:

For Paper-Check Rebates
Last Two Digits of the Social Security Number	Rebate Payment will be Mailed
00 through 09	May 16
10 through 18	May 23
19 through 25	May 30
26 through 38	June 6
39 through 51	June 13
52 through 63	June 20
64 through 75	June 27
76 through 87	July 4
88 through 99	July 11

Rebates for Tax Returns Processed after April 15
The IRS will continue processing rebate checks on a weekly basis for tax returns that are processed after April 15.

To ensure that you receive your rebate payment this year, you must file your return by October 15.

For More Information
You'll find more rebate-related information, on the IRS website at http://www.irs.gov/irs/article/0,,id=177937,00.html.

The IRS has also provided an online rebate calculator at http://www.irs.gov/app/espc/ You'll need information from your completed 2007 tax return to use this tool.

Rodney Fujita is a shareholder and director of the Bader Martin tax practice. He is also a member of the firm's High Net Worth Services practice. Rod's work integrates tax strategies and financial and business consulting for high net worth individuals and families, and their closely held businesses. He is also an expert at addressing the unique needs of public-company executives, including compensation planning, stock option consulting, and financial planning.

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