Before you start deciding what you will spend your tax rebate on, you should determine whether you are getting a rebate. There are several groups of people who will not be receiving a payment from the stimulus package this May, including a large percentage of college students.

On Feb. 13, President George W. Bush signed into law the $168 billion two-year stimulus package. Starting in May, the U.S. Treasury will begin sending the stimulus payments to more than 130 million people. The payments will go out from late spring through summer.

The majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax returns. The IRS will use information on the tax return to determine eligibility and calculate the amount of stimulus payments.

As soon as the stimulus package was announced, questions about it began flowing in. Here are a few common questions that have been asked about the rebate:

Q: Who is not eligible for the stimulus payment?

A: According to an IRS representative, if someone else declares you as a dependent on a 2007 tax return, you will not be eligible for a stimulus payment. The rebate bill specifically makes dependents ineligible for the rebate. That means that students who are claimed by their parents won't get rebates, even if they held jobs that otherwise would have qualified them for the money.

Additionally, if you do not file for the 2007 tax return, you will not receive the rebate. Anyone who does not have a social security number will not receive the rebate, either. Wealthier taxpayers also face some rebate limits. Rebate amounts will begin phasing out for single filers with an adjusted gross income of more than $75,000, and more than $150,000 for married couples filing jointly.

Q: I am eligible. How much will I get?

A: Individual taxpayers could receive rebate checks of at least $300 and up to $600. Married couples will get up to $1,200. Most individuals who have income of $3,000 but who do not have to file a return will get $300, as long as they file a return for 2007.

Q: I'm eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?

A: According to the IRS website, your payment will be reduced. For this purpose, the stimulus payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support. If this occurs, you will receive a letter explaining how the stimulus payment was applied.

Q: Where is this money coming from?

A: The government will borrow the money to pay for the rebate, initially adding to the federal deficit.

Q: I am claimed as a dependent. Will the person that claims me receive my payment?

A: Since the stimulus payment plan is still very new, there are some aspects of the rebate that are unclear. Both an IRS representative and an H&R Block representative could not give a solid answer for this question. USA Today’s website, however, stated that parents can't claim a $300 rebate for dependents 18 and up; the rebate is limited to dependents under age 17.

For those receiving a stimulus check this spring, spend it wisely. For the majority of college students who will not be getting that check in the mail, don’t let it bring you down. While $300 may seem like a lot now, hopefully a college education will aid you in making much more than the minimum stimulus payment.

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