How to Apply for Tax Rebate

A tax rebate is sometimes used interchangeably with a tax refund, even though there is a difference. A refund is a repayment from the government of taxes that were withheld over the course of the year and overpaid. In other words, too much money was withdrawn from paychecks throughout the year, and the government will pay you back. Today, however, a tax rebate typically refers to the recovery rebate created by the Economic Stimulus Act of 2008. The rebate may be claimed on Form 1040EZ.

Things You'll Need

• W-2 Form
• Form 1040EZ

Instructions

1. Obtain a W-2 form from your employer. This form will contain all the information you need to fill out Form 1040EZ, as long as you only had one job over the year and are not concerned with deductions or credits. Also, this form is only for single and joint filers with no dependents. If you have deductions, credits, dependants or other forms of income, you will be better suited visiting a tax professional.

2. Obtain a Form 1040EZ as well as the 1040EZ instructions. These documents can be obtained at the IRS website. An alternative is to purchase one of the many tax preparation programs available. These programs can be costly, and for a simple tax return such as this, they are not necessary.

3. Follow the 1040EZ instructions to fill out Form 1040EZ. The instructions are 40 pages long and are very detailed. However, do not let the length of the instructions intimidate you because only a small portion will be relevant to a typical filer. Instructions for claiming the rebate are included. The length of the instructions is meant to ensure that each filer has specific instructions at his fingertips for his specific circumstances.

4. Sign and mail Form 1040EZ to the IRS at the address listed at the bottom of the form. Typically, you should receive your refund within 28 days. Using software and e-filing will speed up the process by about 20 days, but add the cost of the software to the equation.

Tips & Warnings

• Take your time. Read through the instructions slowly and carefully. If there is something you do not understand, do not hesitate to visit a tax professional.

• While this is a do-it-yourself method, many times, a tax professional will be able to obtain a larger refund, making the fee owed to the professional relatively small and worth it.

• The 1040EZ form is for the simplest of circumstances. It is recommended that a filer with anything more than a spouse and a single job meet with a tax professional. There are consequences for incorrectly filing a tax return, from losing out on the proper refund to IRS sanctions.

References

• IRS Recovery Rebate Instructions
• Economic Stimulus Act of 2008
• IRS Refund Availability