How to Calculate the Amount of a Tax Stimulus Rebate

A taxpayer prepares his 2007 federal income tax return.

Calculating your tax stimulus rebate is a relatively simple procedure provided you filed a 2007 federal income tax return. Under the 2008 Economic Stimulus Act, taxpayers are entitled to receive stimulus rebate checks in amounts ranging from $300 to $1,200. In order to qualify for the rebate, a taxpayer must have a valid Social Security number, they cannot be claimed as a dependent on another person's tax return and they must have either an income tax liability or "qualifying income" of at least $3,000.

Instructions

1. File a 2007 federal income tax return. The tax rebate is calculated based on the information you provide in your 2007 tax return, even though you anticipate receiving your rebate in 2008 or 2009.

2. Compute your net income tax liability, which is the amount shown on Form 1040, line 57, plus the amount on line 52. For 1040A filers, it is the amount on line 35 plus the amount on line 32. For Form 1040EZ filers, it is the amount on line 10.

3. Add each child you can claim as a dependent on your tax return. If you cannot claim a child as a dependent, you will not be entitled to receive a rebate payment under this part of the program.

4. Calculate your rebate amount which is equal to your net income tax liability but no less than $300 if you are filing as a single person or no less than $600 if you are filing as a married couple on a joint return. Under this rebate program, a single filer can receive a rebate of no more than $600 and a married couple filing a joint return cannot exceed $1,200. Add $300 to your rebate for each child you can claim as a dependent to arrive at your final tax stimulus rebate.

Tips & Warnings

• Consult with a personal income tax professional or certified public accountant before you file your tax return.

References

• IRS.gov: basic information on the stimulus payments
• IRS.gov: economic stimulus payment Q&As: eligibility