The Federal Economic Stimuls Package

Starting in May, millions of households will be receiving checks or deposits into their bank accounts of $300, $600, $1,200 or more. In most cases, the IRS will distribute the funds to the same address or account number that tax refunds were sent. Thus, people who file their taxes early and electronically will receive the payments sooner. If a split refund form (Form 8888) was used, the stimulus payment will be sent in check form only.

To receive a refund check from the government, individuals MUST file their taxes.

$300 - $1,200 Payments to Eligible Recipients

Individuals earning less than $75,000 annually will receive a check for up to $600. Couples earning less than $150,000 annually will receive up to $1,200. Payments would phase out beginning with individuals with more than $75,000 in adjusted gross income (AGI) and couples with more than $150,000 in AGI.

• Families will also receive $300 for each child younger than 17.
• Additionally, workers who can verify that they earned at least $3,000 in 2007 and have little to no tax liability will be eligible for payments of $300 although they must file their taxes.
• Seniors, disabled veterans and veterans' widows that can verify $3,000 in Social Security or veterans' disability benefits in 2007 are eligible to receive payments of $300.
• The determination of income and children is based on the filed 2007 tax return. To receive the funds, 2007 income taxes must be filed with a social security number. ITINs or individual tax identification numbers will not suffice. The funds will not arrive until after May.

To receive the stimulus payment, taxes must be processed by the IRS by December 31, 2008.

{source: CFED}