The Economic Stimulus Act of 2008 (H.R. 5140), approved by the Democratic-led Senate and House of Representatives by overwhelmingly bipartisan votes in February, was designed to help hard-working Americans struggling with the high costs of gas, groceries, and housing and to jumpstart our slowing economy and create jobs here at home.

The centerpiece of this legislation is the payment of an economic stimulus check to 130 million families and individuals that will put hundreds of dollars into the hands of millions of American families who will spend the money immediately to help reinvigorate the economy.

WHO:       More than 130 million and individuals are eligible for the economic stimulus check. This includes more than 20 million senior citizens, and 250,000 disabled veterans and their spouses that the Senate Democrats fought to include as beneficiaries.

Eligible beneficiaries are those reporting:

1)     At least $1 of tax liability for 2007 and gross income greater than the sum of the basic standard deduction plus exemptions or;

2)     $3,000 of qualifying income for 2007, defined as the sum of net self employment income, veterans' disability payments (including payments to survivors of veterans), and Social Security retirement and disability benefits.

Individuals or both members of a married couple filing jointly must have a valid Social Security number to qualify for an economic stimulus check. Individual taxpayer identification numbers (ITINs) are not acceptable.

A report on the state-by-state benefits of the economic stimulus check is available here or in Appendix A.

WHAT:     Eligible recipients will receive a stimulus check of up to $600 ($1,200 for married couples) and an additional $300 for each qualifying child.

1)     $300-$600 rebate ($600-$1,200 for married couples). The payment is based on a combination of qualifying income, gross income and tax liability. There is, for all eligible taxpayers, a minimum rebate of $300 ($600 for joint filers). The maximum rebate, which is based on tax liability, is $600 ($1,200 for joint filers).

2)     $300-per child Child Credit. If a taxpayer receives $1 of the income tax rebate and the taxpayer has qualifying children, the stimulus check will be increased by $300 for each qualifying child. 

To qualify, the child must be under age 17 at the end of the taxable year and meet certain relationship, residency, and support tests. This payment is refundable, meaning the recipient is entitled to the full child credit without regard to income tax liability. 

The amount of the stimulus check is not subject to Federal tax next year- it is an advance payment of an additional, new tax credit related to a beneficiary's 2008 income tax return.

The Internal Revenue Service (IRS) has an online calculator that provides an estimate of the amount of check a taxpayer would receive, available here.

WHERE: To receive a stimulus check, 2007 tax returns must be filed with the IRS.

Individuals who would otherwise not be required to file an income tax return in 2007 must still file a return (on a Form 1040A available here or via the free online services available here) to receive an economic stimulus check

The IRS will determine eligibility, figure the amount, and send out the payments.

WHEN:    The IRS will begin issuing stimulus payments on May 2 (for taxpayers using direct deposit) or May 16 (for taxpayers receiving paper checks).

Update: On April 24, 2008, the Department of Treasury announced that the stimulus payments will begin earlier than previously announced. For taxpayers using direct deposit, the payment will be transmitted beginning on Monday, April 28, 2008. The remainder of the schedule, which appears below, has not yet been updated.

The IRS will issue economic stimulus payments according to the last two-digits of the main filer's Social Security number (SSN):

This schedule applies to tax returns processed by April 15. Taxpayers who filed their returns after April 15 and by October 15, 2008, can expect to receive their payment two weeks later than shown on the schedule.

WHY:       Hard-working Americans are most likely to spend stimulus funds quickly - fulfilling the Democratic Congress's goal of increasing consumer spending and providing a short-term boost to the American economy.

Appendix A

Source: U.S. Department of Treasury, February 8, 2008.