U.S. Begins Sending Out Tax Rebates

The federal government began issuing electronic tax rebates on Monday under a $168 billion program to bolster the sagging economy. The stimulus plan, which was passed by Congress in February, also includes tax breaks for businesses. President Bush and Congress hope that putting this money people’s hands will stimulate spending and jump-start the economy. The Treasury Department plans to send electronic rebates to nearly 7.7 million people by the end of this week, said Andrew DeSouza, a Treasury Department spokesman. The government plans to begin mailing checks on May 9 and expects to send a total of about 130 million rebates. The bulk of those will be mailed by early July, Mr. DeSouza said. The stimulus plan provides tax rebates of up to $600 for individuals and up $1,200 for couples filing jointly, with an additional payments for families of $300 per child. Under the rules of the plan, payments will be reduced for people with adjusted 2007 gross incomes above $75,000 and for couples with incomes above $150,000. Taxpayers earning above a certain amount — for example an individual with no children making $87,000 — are not eligible, said Eric Smith, a spokesman for the Internal Revenue Service. People who are not normally required to file a tax return are also eligible provided they have at least $3,000 in qualifying income, which includes some payments from Social Security and Veterans Affairs, the I.R.S. said. “We know there are many people who are eligible for an economic stimulus package who have not filed a tax return,” Commissioner Douglas Shulman of the I.R.S. said in a statement on Monday. “If you think you may be eligible, even if you don’t normally file a tax return, please check it out.”For Phylishia White, the rebate check will be a measure of help at a difficult time. Ms. White, 26, of Los Angeles, said her family rents part of a duplex that is now in foreclosure. Facing eviction, they have to move on short notice, and she said the rebate would help with some of the expenses. SOURCE: NYTIMES