Please retrieve the latest version of the economic stimulus rebate calculator here.

2008 Economic Stimulus Package Tax Rebate Calculator
Copyright © 2008 – Last modified 02/18/2008

To use this calculator, you need to first complete your 2007 Federal income tax return, or be able to estimate the relevant values.

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The "rebate" is only available for "eligible" taxpayers! A taxpayer is ineligible if he or she can be claimed as a dependent on someone else's return, or if he or she is a nonresident alien. Estates and trusts are ineligible. A taxpayer is also ineligible if he or she has an invalid SSN (social security number) , an ITIN (Individual Taxpayer Identification Number), an ATIN (Adoption Taxpayer Identification Number), or any other identifying number not issued by SSA.

Computation of the "rebate" amount

The basic rebate amount is the lesser of net income tax liability or $600 ($1200 for married couples filing jointly).

If and only if,

1) the "taxpayer" has $3000 in qualified income (earned income, social security, railroad retirement, and/or veterans' benefits)

OR

2) the "taxpayer" has gross income greater than the basic standard deduction plus one exemption (two exemptions for married couples filing jointly) (see table below) AND the "taxpayer" has net taxable income of at least $1

then the "taxpayer" qualifies for the minimum "rebate" amount of $300 ($600 for married couples filing jointly) plus an additional $300 per child. [Note that, for many of these "taxpayers", this is not a rebate, but rather a hand out (of some other taxpayer's money), since they are receiving more "back" than they paid in taxes.]

If the "taxpayer" does not meet the above criteria, they do not qualify for the minimum "rebate" amount, nor the additional $300 per child. See IRC Section 6428(b)(2) as modified by the final version of HR 5140.

For taxpayers with an adjusted gross income greater than $75,000 ($150,000 for married couples filing jointly), the basic or minimum rebate amount is reduced by 5% of the adjusted gross income over those amounts, but the rebate amount will not be less than zero.

The "rebate" is an advance credit against your 2008 tax return (which will be filed in 2009). However, it is calculated based on the amounts shown on your 2007 return. When you file your 2008 return, the IRS will recalculate your "rebate" based on the 2008 amounts. If this results in a larger "rebate" amount, you will receive a "refund" of the difference. If this results in a smaller "rebate" amount, you will not have to repay the difference.

The "rebate" will not increase or decrease any tax refund to which you would otherwise be entitled. It is an additional credit for 2008, which you are receiving in advance.

To receive a "rebate" (which the IRS is now calling a "stimulus payment") you MUST file a 2007 tax return, even if you are not otherwise required to file. Social Security benefits, Railroad Retirement benefits, veterans’ disability compensation, and pension or survivors’ benefits received from the Department of Veterans Affairs should be reported on Line 20a of Form 1040 or Line 14a of the Form 1040A, which is normally designated for Social Security benefits only. [This should not create an additional tax liability, but it will qualify you for the refund.] Note that Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment. See IRS Bulletin.

Number of qualifying children. A qualifying child must be your child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these; have the same principal residence as the taxpayer for more than half the tax year (exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year); be under the age of 17 at the end of the tax year; not provide more than one-half of his/her own support for the year. This should correspond to the number of dependents claimed on Form 1040 or Form 1040A, line 6c, for which the "qualified" box in column 4 has been checked. Click here for additional information.

Earned income is all the taxable and nontaxable income you get from work.

• Include wages, salaries, tips, self-employment income, deferred compensation contributions to retirement plans, salary reductions in a cafeteria benefit plan, dependent care benefits, adoption benefits, educational assistance benefits, union strike benefits, statutory employee income, disability payments from an employer disability plan (if you are under retirement age), meals and lodging that are for the convenience of your employer or due to military service and the clergy housing allowance if included on Schedule SE.
• Also include earned income from a partnership or a farm.
• Do not include interest, dividends, pensions, annuities, Social Security, railroad retirement benefits, alimony, child support, jury duty pay, worker's compensation, veteran's benefits, welfare benefits, workfare payments, penal inmate earnings, unemployment compensation or disability payments after you reach retirement age or if you paid premiums for the disability insurance.

Social Security and Railroad Retirement benefits - Enter the total of the amounts from box 5 of all your Forms SSA-1099 and RRB-1099. Do not include any SSI benefit amounts. If you did not receive a Form 1099, multiply your monthly benefit amount by the number of months you received benefits in 2007. See IRS Bulletin.

Veterans' Disability, Pension, and Survivor’s benefits - Enter the total of your veterans' disability compensation, and pension or survivors’ benefits received from the Department of Veterans Affairs. If you didn't receive a Form 1099, multiply your monthly benefit amount by the number of months you received benefits in 2007. See IRS Bulletin.

Net income tax liability for the calculation of the rebate means the regular tax liability, plus any additional tax under AMT, minus any nonrefundable personal and other credits (but not reduced for the child tax credit). To determine this figure, add lines 52 and 57 of Form 1040, or add lines 32 and 37 of Form 1040A, or use the amount on line 10 of Form 1040EZ.

Print button - Clicking this will invoke the standard Windoze "print" window to print the contents of the calculator frame including all the explanatory text, which will take 2-3 pages! If you just want the first page with the calculations, specify "Page 1" when the print window opens.

This calculator was written to reflect the final version of H.R. 5140 (the "Recovery Rebates and Economic Stimulus for the American People Act of 2008") as I understand it. I wrote it because all the calculators I found on the Internet at the time 1) purported to reflect the original version of the "rebate" legislation, not the final version, and 2) none of them provided the correct results for any version of the bill. Most of them linked to the same (completely inaccurate) calculator provided by PBS in late January.

The entire text of all five versions of the bill, as well as committee reports and the three "official summaries", can be found here:

Please send any comments or suggestions to Feedback. Please do not send me your opinion of the legislation. Congress didn't consult me when they wrote it, and they aren't consulting me now.

Tax Professionals: I spent a great deal of time and effort writing this calculator. I had to read the entire tax bill and review all the IRC sections it references in order to produce the ONLY comprehensive and accurate tax "rebate" calculator on the Internet. I had to write the program, and thoroughly test it to make sure it works properly on a variety of Internet browsers. And, I had to document it for both the layman and tax professional. I have promptly fixed the few errors and omissions that I have discovered, and I intend to continue to do so if any further errors or omissions are reported. However, I am NOT a tax professional, and this calculator is NOT generating any revenue for me. So, if you are a tax professional, and are using my calculator to generate revenue, I would appreciate a donation (in whatever amount your choose) via Paypal using the following link:

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IMPORTANT: Everything stated above is for general guidance in how to use the calculator, and in how the calculator computes the estimated "economic stimulus payment" amount. It is not, and should not be construed as, legal or specific tax advice. Each taxpayer's situation is unique, and we recommend that you consult a tax professional or attorney for specific tax or legal advice..

Although we do not give legal or tax advice we are required by law to provide you with the following disclosure:

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or (b) promoting, marketing or recommending to another party any transaction or matter addressed herein.