Read the IRS FAQs (Off topic warning!)
Yeah, the Government is handing out $600 to stimulate the economy. Trouble is, they hope everyone is too dumb to realize that they will be taxed on it next year, so dumb people will receive $600 from government this year, spend all of it thinking it is free money, and then next year be taxed (say 25%) on it and so owe the government $150 or so.
According to the IRS's own FAQs, you are not correct. While there is definitely no such thing as "free money", this stimulus package is not a prepayment on next year's refund like the $300 stimulus we received back in 2002. It is based on 2007 tax returns, and like the war in Iraq, will just be into the national debt, which a full stimulated economy would refill just like that through increased tax revenues...riiighhht.
If you didn't file in time, you'll get it next year in a one-time credit. Those who received it in 2008 won't receive the credit...it is a prepayment on a credit, on not next year's taxes.
You don't have to believe me...read it at the IRS web site. You know to Google, I trust.
Other off-topic facts:
$600 of single with an AGI of less $75K
$1200 to those with AGIs of under $150K
$300 extra per child (must be claimed on 2007 taxes)...no limit
<http://money.cnn.com/2008/04/28/news/economy/rebate_update_monday/index.htm?postversion=2008042810>
From the above article:
Will I have to pay it back?
No. And here's why.
Your stimulus payment is a one-time tax cut - an advance on a credit you'll receive on your 2008 return. You will not owe tax on your payment when you file your 2008 tax return, and it will not increase the amount you owe or reduce your 2008 refund.
The stimulus payment is based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.