The rising costs of energy, housing and health care have taken a toll on the state of our economy. In Rhode Island, the typical monthly housing payment is over $2,200, making homeownership a dream out of reach for too many.  The situation for renters is not much better, as the average two-bedroom apartment in Rhode Island rents for nearly $1,200 a month.  Compounding the cost of housing are the skyrocketing costs of energy, which rose 18.4% in 2007.

These harsh realities, combined with the snowballing effects of the subprime lending crisis, make it increasingly clear that without swift action, our economy will face an even sharper downturn. To jump-start our nation’s economy, I worked with my colleagues in the House of Representatives to pass the bipartisan H.R. 5140, the Recovery Rebates and Economic Stimulus for the American People Act.   Congress sent the final version of the economic stimulus package to President Bush, and he signed it into law on February 13, 2008.

This measure will quickly inject $150 billion into our economy to revitalize our markets, increase consumer confidence, protect against recession and deliver relief to American families who need it right now.  It will provide a recovery rebate to 130 million families nationally, including 35 million Americans who work and contribute to payroll taxes, but make too little to pay income tax.  This measure also provides rebates to certain senior citizens and veterans.  You may visit the IRS if you have questions regarding your eligibility for a stimulus payment.

As you and your friends and neighbors file your taxes, please be vigilant of attempts at identity theft and fraud.  The Internal Revenue Service (IRS) has issued several recent consumer warnings on the fraudulent use of the IRS name or logo in e-mail messages to trick recipients into giving access to personal and financial information that can be used to steal their identity and assets.  These phony e-mails may offer links to sites that appear legitimate.  If you receive a suspicious e-mail that claims to come from the IRS, you can alert the IRS. The IRS can use the information to trace the hosting Web site and alert authorities to help shut down the fraudulent sites.

Looking forward, I will work for policies that offer a long-term plan to boost our economy by strengthening our safety net, creating jobs and restoring consumer confidence.

What is the recovery rebate?

The recovery rebate is the payment now of a new tax credit for the 2008 income tax year. The check is intended to stimulate the economy.

Am I eligible for a stimulus check?

Generally, you are eligible if you file your 2007 income tax return reporting tax liability or have earned income, social security income, Railroad Retirement benefits, or disabled veterans’ benefits of more than $3,000. The credit phases out for those taxpayers with an adjusted gross income of $75,000 ($150,000 for a joint return) or more. If you are claimed as a dependent on someone else’s return, such as your parents, you are not eligible.

What do I need to file to get a stimulus check?

Most taxpayers simply will need to file a 2007 income tax return. There is no additional form needed, the IRS will automatically send it to you.

When will I receive my rebate?

The Treasury Department expects to begin issuing checks starting in May to more than 130 million households. They will be issued over a period of months through the spring and early summer.

What will be the amount of my recovery rebate?

Taxpayers generally will receive a rebate check of up to $600 ($1,200 in the case of a joint return). In addition, a taxpayer is eligible for an additional $300 for each qualifying child. Taxpayers may also visit the IRS to calculate the amount of their rebate.

How can I get more information?

The IRS will mail two informational notices to taxpayers advising them of the stimulus check. The IRS website also has information on the economic stimulus check. You can also call the IRS at 1-800-829-1040.