By Edward Gately

Mar. 18, 2008 (McClatchy-Tribune Regional News delivered by Newstex) --
The Internal Revenue Service is offering its biggest incentive yet for taxpayers to e-file their federal income tax return.

Those who e-file their returns will receive their economic stimulus rebate checks much sooner than those who file paper returns.

"If an individual chooses to electronically file and they have a refund coming that is direct deposited, then the stimulus payment will follow suit and it will be sooner than if a paper check was to be issued, based on the distribution order for the stimulus payment," said Bill Brunson, IRS spokesman in Phoenix.

The IRS will begin sending more than 130 million economic stimulus payments starting May 2.

If you received or will receive your 2007 federal income tax refund via direct deposit, you will automatically receive your stimulus payment the same way. All others will receive their payments in the form of a paper check.

All or part of a stimulus payment may be applied to back taxes or certain other debts, such as delinquent child support and student loans. In such cases, the IRS will send a letter explaining the offset.

Also Monday, the IRS announced the availability of an online calculator at www. irs.gov to help taxpayers determine if they are eligible to receive a payment and how much they can expect. Anyone who has prepared a 2007 income tax return can use the calculator.

Basic payment amounts established by Congress are up to $600 for individuals or $1,200 for married couples filing returns jointly, plus up to $300 for each qualifying child.

However, individual payment amounts will vary depending on each individual's circumstances, Brunson said.

"For example, a married couple filing jointly would receive a $1,200 payment. However, if they had income above the initial threshold amount of $200,000, the stimulus payment would be reduced by a percentage point, .05 percent, until it was phased completely out," he said.

For Social Security and Veterans Administration benefit recipients, the IRS is mailing packets designed to help them file their federal return in order to receive a rebate check. Those needing assistance can call (800) 829-1040 to find out the nearest location offering free filing help.

CONTACT WRITER:

(480) 898-6814

or egately@evtrib.com


Newstex ID: KRTB-0132-23863645