Economic Stimulus Act Payments

The Economic Stimulus Act of 2008 (Public Law 110-185) enacted on February 13, 2008, provided a tax credit against 2008 tax liability, in the form of a cash payment, to most taxpayers based on income and tax liability information reported on 2007 federal income tax returns. Taxpayers who received a stimulus check had a valid Social Security number, at least $3,000 in income, and filed a 2007 federal income tax return. The maximum stimulus payment amount was $600 ($1,200 for married couples filing a joint return) plus an additional $300 for each eligible child in the family younger than 17. Maximum payments were phased out for higher-income taxpayers and reduced for lower-income taxpayers with limited federal income tax liability.

Therefore, the Department of Education has determined that any amounts of stimulus payments received last summer, are excluded from the "expected family contribution" calculation. Applicants for Federal student aid should not report these stimulus payments either as income or untaxed income on their 2009-2010 FAFSA.

Updated October 20, 2009