Q: My daughter lives in Puerto Rico. . . . Are they ineligible for this [rebate]? Because from what I hear, everyone in Puerto Rico is excited about getting this [rebate], and my daughter was curious how this will work out – if they are going to qualify. . . .

— C.G., Pawtucket

A: Many New Englanders have relatives in Puerto Rico and are probably wondering the same thing. Here’s the deal:

The new federal economic stimulus law makes it clear that residents of Puerto Rico are eligible for rebates.

The Commonwealth of Puerto Rico’s Department of the Treasury developed a plan to distribute the rebates, as required by the new law, and the U.S. Treasury approved that plan last month.

As a result, Puerto Rico residents should soon start receiving rebate checks totaling up to about $1.28 billion. Checks are to be mailed through July.

The basic rebate rules are the same for Puerto Rico as they are for the United States, said Bob D. Scharin, senior tax analyst for the Tax & Accounting business of Thomson Reuters.

For example, a married couple filing a joint return will generally receive a rebate of between $600 and $1,200; someone who’s single will generally receive a rebate of between $300 and $600. (There’s also an additional rebate amount of $300 available to parents for each child they have who’s under 17.)

However, there are some key differences. For example:

•In the United States, the Treasury is using the information on your 2007 return to process your rebate. Puerto Rico authorities will instead rely on the information on a person’s 2006 return, Scharin said.

(This is because nearly half of all Puerto Ricans file their returns on April 15, and most of those returns are on paper. As a result, Puerto Rican authorities won’t be able to process those returns quickly enough to generate the rebates. Instead, they’ll rely on information on returns filed last year, covering 2006, the Treasury report says.)

•In the United States, the “additional rebate amount” of $300 mentioned above is for a child who was under 17 as of Dec. 31, 2007. In Puerto Rico, the additional rebate amount of $300 will be for a child who was under 17 as of Dec. 31, 2006, Scharin said.

•In the United States, you’re not eligible for a rebate if you were claimed, or could be claimed, as a dependent on another person’s U.S. return. Puerto Ricans won’t be eligible if they were claimed, or could be claimed, on another person’s Puerto Rico income-tax return or U.S. income-tax return, the report says.

Keep in mind that this is just a summary of Puerto Rico’s rebate distribution plan. The plan itself provides more details. It’s available on the U.S. Treasury’s Web site:

www.ustreas.gov

Also last month, Treasury Secretary Henry M. Paulson Jr. approved rebate distribution plans for American Samoa, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

Q: Our adjusted gross income is $145,900. My husband made $82,000; I made the rest. My question is, are we going to get the $1,200? When I asked the gentleman who did taxes, he said he was not sure. . . .

— S.D., Cranston

A: You should receive $1,200, which is the maximum rebate amount for a married couple filing a joint return, said Internal Revenue Service spokeswoman Peggy Riley.

Whether you’re eligible for a rebate depends mainly on the amount of adjusted gross income listed on the front of your 2007 return, toward the bottom.

In general, you’re eligible for a full rebate if you’re single with adjusted gross income of $75,000 or less, or you’re married and filed a joint return reporting adjusted gross income of $150,000 or less.

If your income exceeds the limits, the amount of your rebate will be reduced, perhaps to zero.

In your question to MoneyLine, you said that your adjusted gross income is $145,900. As a result, you should receive a $1,200 rebate, Riley said.

(If you have children, you’re generally eligible for an additional rebate amount of $300 for each child who was under 17 as of Dec. 31, 2007.)

Remember, though, that there are situations in which your rebate could be reduced. Maybe that’s what your tax preparer had in mind. For example, your rebate could be reduced – or even eliminated – if you’re delinquent on federal income taxes, state income taxes, federally backed education loans, or child-support payments.

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