If you are still expecting for your tax relief check, stop waiting. Instead look forward to having your federal income tax withheld from your paycheck if you still hold your job.

The first round of rebate checks, which were mailed directly to eligible taxpayers, was based on 2007 tax return information. Rebates are reduced for single taxpayers with more than $75,000 in adjusted gross income. For joint filers, the phase-out begins at $150,000.

If your income has changed since 2007 — perhaps due to a job loss or a reduction in investment earnings — you may qualify for a credit of up to $600 if you are single and up to $1,200 if you are married. Or, if you had a baby or adopted a child in 2008, or if you are a divorced parent who claims a child as a dependent every other year, you may qualify for a tax rebate of up to $300 for an additional child under age 17.

Any amount you receive based on 2008 tax information would be offset by what you have already received based on your 2007 tax returns. So, for instance, if you are single and received $200 out of the potential $600 rebate, you may be eligible for an additional $400.

If you qualify for a rebate, don’t expect to receive your tax relief check in the mail. It will be added to any refund you are due or will reduce any tax bill that you owe.

Even if you already received your rebate check in 2008 and aren’t entitled to any additional money, you stand to gain too. The rebate you received is not taxable, and if your 2008 income increased about the levels that make you ineligible for a rebate, you are not required to give the IRS back.

Source: Second Chance for a Tax Rebate - 2008-2009