IRS creates link on its Web site for rebate questions

The Internal Revenue Service is trying to keep it simple when it comes to explaining to taxpayers about those highly anticipated economic stimulus payments.

"To receive the stimulus payments, the majority of American taxpayers won't need to do anything more than file a 2007 tax return,” Acting IRS Commissioner Linda Stiff said Friday during a conference call with reporters.

"The IRS then will do all the rest, including determining eligibility and payment amount. There is no need for anyone to call the IRS to request payment or file any other form.”

Despite that, some confusion remains, Stiff said.

To help answer some questions from taxpayers, the IRS has created a link on the front page of its Web site at www.irs.gov labeled "Rebate Questions?” Clicking through provides a wealth of information on the economic stimulus payments.

The agency will begin mailing checks soon after the April 15 tax return filing deadline. Some taxpayers should see payments in early May, with payments continuing through the spring and early summer.

A schedule of when taxpayers can expect to receive their payments should be published "within a week or so,” Stiff said. The schedule likely will be determined by Social Security numbers and geography, she said.

The IRS also hopes to put a calculator on its Web site that would allow users to determine how much they can expect to receive, Stiff said.

In most cases, payments will range from $300 to $600 for individuals and $600 to $1200 for joint filers. Taxpayers may receive $300 for each qualifying child.

The payments begin to phase out beginning at $75,000 for single filers and $150,000 for joint filers.

A minimum of $3,000 in qualifying income is needed to receive an economic stimulus payment. Some of those eligible for the payments have not needed to file federal tax returns in previous years because they didn't generate enough income, but they will need to file 2007 returns to get their stimulus checks, Stiff said.

That includes people who receive income from Social Security benefits, railroad retirement benefits and disability compensation, disability pension and survivor benefits from the Veterans Affairs Department. Supplemental Social Security (SSI) benefits do not qualify as income toward the $3,000 minimum for stimulus payments.

"Some people receiving Social Security and veterans' benefits may not realize they will need to file a tax return to get the stimulus payment,” Stiff said. "To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.”

A final point to keep in mind: the economic stimulus payments are not taxable income, and acceptance of the payments will not affect future tax liabilities or benefits.