How to cash in on the rebate

SPRINGFIELD -- The April 15 IRS filing deadline carries a bit more importance this year.

Eligible taxpayers will receive up to $600 ($1,200 for joint-filing married couples). Plus, parents will pocket an additional $300 for each eligible child under age 17.

You have to file to be eligible for the federal economic stimulus rebates that'll begin being deposited in taxpayers' bank accounts next month.

With the 15th quickly approaching, the Daily Herald answers 15 questions taxpayers are likely to have about the rebates, how to get them and how big -- or small -- the check might be.

For more information and the latest updates, visit www.irs.gov.

1. Do I meet the requirements to receive a rebate?

You must file a 2007 federal income tax return, use a valid Social Security number and have $3,000 of income tax liability or qualifying income. Retirees, disabled veterans and low-wage workers usually exempt from filing tax returns must do so this year to be eligible.

However, people claimed as a dependent on someone else's tax return, like working teens or students away at college, are not eligible for a rebate because their parents will likely be getting $300 for them. Sorry, the IRS doesn't allow double-dipping.

2. What if I don't have a Social Security number but another IRS-issued taxpayer ID number?

You're out of luck. You must have a Social Security number. Individual Taxpayer Identification Numbers, or ITIN, and Adoption Taxpayer Identification Numbers, or ATIN, are ineligible.

Also, both individuals filing joint returns must have valid Social Security numbers, otherwise neither will receive a rebate.

3. What qualifies as income?

Any combination of earned income and certain benefits from Social Security, Veterans Affairs or Railroad Retirement counts as qualifying income. Dividends, interest, capital gains and Individual Retirement Account income are not included when determining rebate eligibility.

4. Can I file a 1040EZ tax form and still get a rebate?

Yes. Rebates are not exclusive to those who file Form 1040 or 1040A. But those who have qualifying income from Social Security or other benefits must file either Form 1040 or 1040A for their stimulus payment.

5. If I don't normally file taxes, can I get any help?

If you had no legal obligation to file taxes in 2007, you can file your federal return online for free at Web sites like FileYourTaxes.com or TurboTax, which usually walk you through your return. Remember, you must file to get a rebate.

6. How much can I get?

There's no simple answer. It depends on how much you make.

The payments begin to phase out for individuals making more than $75,000 and married couples making more than $150,000.

The entire rebate, including the child tax credit, is reduced by $50 for every additional $1,000 in taxable income. Singles with more than $87,000 in gross income and couples exceeding $174,000 will receive no rebate if they don't have qualifying children.

7. I owe. Does that mean I won't get a rebate or it will be applied to the amount I owe this year?

No. The rebate is a separate entity and does not affect taxes you may owe on your 2007 return, which must be paid separately by April 15 to avoid interest charges. However, if a person is paying back taxes, the rebate will go toward that tax debt. The payment can also be withheld for overdue child support or delinquent student loans.

8. Will my rebate check count as income, and will the government tax it next year?

Both the IRS and state revenue department say no.

9. Will this stimulus payment in 2008 reduce my 2008 tax year return refund or increase what I owe?

No. The IRS says these rebates are handled separately from actual refunds. They will not reduce your refund or increase the amount you owe when you file your 2008 return next year.

10. You said rebate checks will arrive in May. But when, exactly?

How fast depends on whether you asked for direct deposit or a mailed check on your 2007 returns and also the last two digits of your Social Security number. If you opted for direct deposit, the amount will be transmitted between May 2 and May 16. Those receiving a check will have their payments mailed between May 16 and July 11.

11. If I used direct deposit to divide my tax refund among multiple accounts, I'm still set up for direct deposit of my rebate, right?

No. The stimulus rebate can't divide into more than one account, so it will be mailed the old-fashioned way.

12. If I file for an extension, will I still get my economic stimulus rebate?

Yes. People who file a return after April 15 will still get their rebate, but at least two weeks later than those who file on time. To take advantage of the rebate this year, you must file by Oct. 15.

13. What if I'm not eligible now but become eligible later? Can I still get it?

Yes. For example, if you don't have a Social Security number now but get one soon, you can file an amended Form 1040X. File it after April 14 and allow eight to 12 weeks for processing. If you become eligible next year, you can claim the rebate on your 2008 tax return.

14. I still don't get it. What's an easy way I can estimate my rebate before sending off my taxes?

If you have your completed tax return, use the IRS rebate estimate calculator located at www.irs.gov/app/espc/.

However, some tax programs will inform you of your rebate amount after you finish filing online.

15. Great, so now that I'm getting some cash, maybe I should know what it's all about?

The stimulus rebates are a 2008 tax cut in advance, handed out in hopes that taxpayers will spend the money to help boost the flailing U.S. economy. Unlike similar rebates issued in 2001, these payments include low-income individuals who don't typically pay taxes.