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This post is a follow-up to the article I wrote a few weeks ago about the Government Rebate Checks. Yesterday I, as well as millions of other Americans, received a letter in the mail from the IRS outlining the Economic Stimulus Act of 2008. It stated that the government would start sending these one time payments out in May. The great thing about this rebate is that you don’t have to fill out any additional paperwork. All you have to do is submit your yearly tax return, and the IRS will determine your payment from that.

A single person is eligible for up to $600, and a married couple is eligible for up to $1,200. Up to two dependants can be claimed for $300 each. The largest payoff would be to a married couple with two dependants. They would be eligible to receive $1800. Depending on your income levels and other deciding factors you may not be eligible for the full amount. The IRS has created a refund calculator on their website and can be found here.

There are a few people that the government will be leaving out in the cold though.

• If your adjusted gross income is over $75,000 (or more that $150,000 if married filing jointly), the payment will be reduced or phased out completely.
• You must have a valid Social Security Number to qualify for the rebate.
• Individuals who can be claimed as a dependant of another taxpayer cannot receive the payment.
• Taxpayers who filed a 2007 form1040NR, 1040NR-EZ, 1040-PR or 1040-SS will not be eligible.
• A dependant over the age of 17 will not qualify for the additional $300.

One thing that frustrates me about this plan is that is does not consider college students. First of all, the parents who are most likely supporting the student (and claim them as a dependant) will not be receiving the $300 bonus. Also, college students (many who work during the school year) also will not be able to qualify to receive the $600 check. I’m sure there are quite a few people who are with me on this one.

For all the nitty gritty details that only the IRS can provide, click here for the official IRS page for the Economic Stimulus Act of 2008!