President Bush signed the Economic Stimulus Package and now, it's on its way to taxpayers. More people qualify for this payment than they realize.

Many people are contacting tax preparers asking if this is a refund or a rebate. The IRS says it is neither.

The true term for the check most taxpayers will receive is "Economic Stimulus Payment."

Rumors are circulating regarding the 2008 Economic Stimulus Payment that President Bush signed into law. Tax payers aren't sure if they qualify or how much they will get back.

H&R Block Office Manager Linda Hartzog said, “The main questions they've been asking is about the amount of income they need to have, what they need in order to file for it and if it's going to effect them next year on their federal and state tax returns.”

Tax payers who file a return every year should file their return as normal. Individuals whose 2007 adjusted gross income exceeded $75,000 dollars or married couples filing jointly whose income exceeds $150,000 dollars may get a reduced payment or none at all.

Eligible individuals could receive a maximum payment of $600 dollars. Married couples filing jointly could receive up to $1200 dollars and each individual child could qualify for up to $300 dollars.

IRS Media Specialist Dan Boone said, “In order to get a stimulus payment, everyone on the return must have a valid social security number.”

People, who have no tax liability, but have at least $3000 dollars income for 2007 from earned income, social security benefits, certain railroad retirement or certain veteran's benefits may qualify for a refund. Individuals would qualify for $300 dollars; married couples filing jointly would qualify for $600 and $300 dollars for each individual child.

“If you have any combination of any four of those types of income that amounts to at least $3000 dollars, then you will probably qualify and you will want to file a return,” Boone added.

This refund amount will not be taxed by the federal government and it will not have to be paid back.

Alabama has introduced legislation to make the refund amount exempt from state taxation.

The IRS says they will be sending two informational letters about the refund to taxpayers in March by U.S. mail.

They say to beware of scammers. The IRS will never ever contact anyone by email or phone. They will not send you anything asking you to send them any personal information.

For more information on the Economic Stimulus Refund, you can log onto the IRS website at http://www.irs.gov/ or call their helpline at 800-829-1040.