Several readers have asked me whether the federal economic stimulus payments that 130 million of us will start getting in May are really just pre-payments on our 2008 taxes. Next year, will we get smaller tax refunds--or owe more--because we're getting a tax rebate now?

My source at the IRS says no. This will not affect our tax refunds next year or in any future year. This is a one-time payment that won't bite us in the rear later on. You won't owe federal tax on this rebate, either. (For more details, click here for the IRS's fact sheet and scroll to the bottom of the page.)

For 2008 only, the government is providing a basic tax credit of up to $600 per single filer or head of household, $1,200 per married couple filing jointly. The credit is based on what you report on your 2007 tax return. If your 2007 tax was lower than those maximums, your credit is less. For example, a single filer who paid $400 for 2007 would have a $400 credit. Eligible individuals will recieve another $300 for each qualifying child under 17. The credit phases out as your income increases.

This rebate is a pre-payment of that credit. It won't reduce your refund next year or increase what you'll owe. It may affect how you fill out your 2008 tax return, so hold on to any notice on it that you receive from the IRS.

Remember last year's telephone excise tax rebate? Mr. IRS tells me to think of it that way. It's essentially a one-time freebie.

Of course, looking at the big picture, it's not a freebie. The government has to get the money from somewhere to pay us all. If it borrows, it has to pay that money back by reducing expenditures somewhere or eventually raising taxes. So yes, in larger sense, we--or future generations--eventually will have to pay for it. But from the point of view of the individual taxpayer in the here and now, it's a gift.

--Tobie Stanger