Stimulus Rebate Rules

$5,000—Penalty for making "frivolous" tax arguments to the IRS.

(Wall Street Journal, 2008)

The folks down in DC, as usual, have turned a relatively simple idea and added complex rules to make it confusing. Congress has decreed, for example, that the economic stimulus rebate should go to people who don’t pay taxes, which means that even those who don’t usually file a tax return will have to file one this year to get in on the goodies.

Seniors living on Social Security, those living on disability, or those with low incomes may qualify for a rebate, but they have to file a return to get it. Taxpayers who actually pay taxes automatically qualify for the rebate.

If you haven’t filed your return yet, be sure to fill out the direct deposit information on Lines 73b and 73c, even if you’re not eligible for a regular refund. Those who opt for direct deposit will have their economic stimulus rebate checks deposited in the bank no later than May 9. Those who opt for a paper check could wait until as late as July 11 before they see any cash. For more information on the economic stimulus rebates, see Stimulus Payments: Answers to Frequently Asked Questions.

“The care of human life and happiness, and not their destruction, is the first and only object of good government.”—Thomas Jefferson

More for You:

• Qualifying for a Stimulus Check

• Picking the Right Tax Pocket for Your Assets