Questions & Answers

Your first clue will be when you get a letter from the IRS. According to the IRS: Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer. Most taxpayers will receive two notices from the IRS. The first general notice from the IRS will explain the stimulus payment program. The second notice will confirm the recipients’ eligibility, the payment amount and the approximate time table for the payment. Taxpayers will need to save this notice to assist them when they prepare their 2008 tax return next year.

The initial checks will be based upon your 2007 tax return as filed. The actual rebate is based upon your 2008 income and tax liability which can't be determined until you file in 2009 so there will have to be a reconciliation section on the 2009 tax returns. If you didn't receive all of the rebate that you were entitled to, the IRS will settle up when you file your 2008 return in 2009. However if you received too much initially you will NOT be required to repay the excess payment.

The maximum amount of income you can earn and still get the credit has increased. You may be able to take the credit if: - You have more than one qualifying child and you earned less than $37,783 ($39,783 if married filing jointly), - You have one qualifying child and you earned less than $33,241 ($35,241 if married filing jointly), or - You do not have a qualifying child and you earned less than $12,590 ($14,590 if married filing jointly). Your adjusted gross income also must be less than the amount in the above list that applies to you. See Publication 17 for more details.

Any time the IRS changes the refund, they send a letter. Check your tax return, if it truly showed $500 more, you'll get a letter. By any chance do you pay quarterly estimated taxes or apply money from last year's tax return? This is a common problem area because people put down the wrong amount and the IRS computer ALWAYS verifies the payments.