WASHINGTON, D.C. - Taxpayers could begin receiving IRS rebate checks of up to $600 per person in May from the recently passed Economic Stimulus Act of 2008.

Linda Stiff, acting president of the IRS, said payments would begin in early May and continue through the summer. A final decision will be made by the middle of this week.

Stiff speculated distribution would be based on a combination of geography and the digits of taxpayers' Social Security numbers, not alphabetical order.

Most people with a 2007 income tax liability will qualify for a rebate check of up to $600 for individuals or $1,200 for joint filers. Families with children under the age of 17 as of December 31 will receive an additional $300 per qualifying child. Individuals filing as dependants are not eligible.

The minimum payment for a single person is $300 and $600 for a married couple filing jointly. The upper threshold for qualifying for a tax rebate is $75,000 for individual filers and $150,000 for joint filers. Anyone above these thresholds will have a "phase out" amount of 5 percent for adjusted gross income above that amount, plus any qualifying children.

The IRS will work with other organizations, including the Social Security Administration and the AARP to inform individuals eligible for the rebate who do not regularly file taxes on how to receive a rebate checks. The informational marketing campaign is being funded by a special package set aside by Congress. Stiff did not say how much would be spent on the campaign.

In order to receive rebate checks, individuals must file a 2007 tax return. The IRS will determine eligibility and refund amounts based on the information provided in the tax return. No extra work is necessary on the behalf of taxpayers.

Stiff offered two tips on how to receive rebate payments quickly: File by the April 15 and provide information for direct deposit on the return. Even taxpayers who owe money to the government on their 2007 returns should fill out direct deposit information, and the government will deposit the checks, but not withdraw taxes owed.

Some individuals with no tax liability also qualify, including some Social Security and railroad retirement beneficiaries, recipients of certain veterans' payments, low-income workers with an earned income and/or benefits of at least $3,000 and individuals who have a combine income of at least $3,000 from any combination of those sources.

Rebates checks will be mailed or directly deposited separately from checks for 2007 tax returns. The rebate checks will not count as taxable income. Only individuals with a valid Social Security number are eligible.

Stiff also said the IRS Web site was updated Friday with new information, including several rebate scenarios and example 1040 forms for those who do not normally file taxes.

The new information can be found at www.irs.gov or by visiting your local IRS office.

Contact Drew Andersen at (319) 291-1418 or drew.andersen@wcfcourier.com.