As I wrote in February, the House, Senate and President worked together to pass a timely, temporary and targeted economic stimulus package. The Economic Stimulus Act of 2008 included several elements to boost our sagging economy.

The stimulus package provides incentives for businesses to invest in new equipment more quickly. It also allows Freddie Mac and Fannie Mae to purchase more home mortgages from banks and more safely package those mortgages into securities that can be sold to investors around the world.

But one element of this economic stimulus package that most taxpayers may care about most is their tax rebate checks. The stimulus bill provides for rebate checks to couples whose income is under $150,000 and to individuals whose income is under $75,000 in the amounts of $1,200 to couples, $600 to individuals, plus $300 per dependent child claimed on the return. Above these income levels, the rebate begins to phase out.

Taxpayers qualify to receive rebate checks if their 2007 income totaled at least $3,000. This income can come in the form of a paycheck, veterans’ disability compensation or pension; Social Security, retirement or disability benefits; or railroad retirement.

But to receive a rebate check, you must file a tax return showing income of at least $3,000, even if you normally do not file a tax return. This may be of most concern for military personnel, recipients of Social Security and certain veterans’ benefits, and low-income workers. The IRS has released a special version of Form 1040A to ensure people in these categories receive their rebate checks.

Taxpayers may have their rebate check directly deposited in their bank accounts if they select that option when filing their 2007 tax returns. Not only is direct deposit the fastest way to receive this year’s rebate, it saves the government on paper and postage.

To help simplify the process, the IRS is mailing more details regarding the stimulus payments, and also maintains a very helpful website. Below I have compiled some additional information you may find useful.

As always, protect your financial information and beware of scams involving the rebate. The IRS will not ask for any of your financial information via telephone or email, so please ignore such requests.

Rebate checks to taxpayers are by no means the only answer to our current economic downturn, though they may be the most popular solution with many! Please be assured, however, that I will continue to look for bipartisan solutions to avoid a future mortgage meltdown as we work to tackle the financial problems resulting from the current housing crisis.

For questions, comments, or problems enountered while using my website, please contact the Webmaster.