Tax returns will determine stimulus payments

Starting in May and continuing through spring and summer, the U.S. Treasury will send out economic stimulus payments to more than 130 million people.

Most people who qualify won't have to do anything to receive their payments except file their 2007 individual income tax returns. The Internal Revenue Service will use the 2007 tax returns to determine eligibility and calculate the payments.

According to the IRS Web site www.IRS.gov., in most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for those who file joint returns) and a minimum of $300 for individuals ($600 for those who file joint returns). Even people who owe little or no income tax could qualify for the minimum payment if their tax return shows $3,000 or more in qualifying income.

Low income workers who have earned more than $3,000 but do not have a regular filing requirement must file a 2007 tax return in order to receive the minimum stimulus payment.

Parents and others with minor dependents will also receive an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number, as must all taxpayers who qualify.

These payments will be made separately for any income tax refund payments.

Later this month, the IRS will send a special mailing to some recipients of Social Security and Veterans Affairs benefits. Generally, those benefits are nontaxable, so recipients may not file tax returns. However, to receive the stimulus payment, they must file 2007 returns if they have at least $3,000 from a combination of certain Social Security benefits, Veterans benefits, and earned income, the Web site said.