Week 1 of rebates: $7.1 billion sent out

NEW YORK (CNNMoney.com) -- Nearly 8 million taxpayers found some extra money in their bank account this week, courtesy of the U.S. Treasury.

The Treasury Department deposited about $7.1 billion into the accounts of more than 7.7 million taxpayers this week in the first stage of an economic stimulus package that passed earlier this year to help Americans combat a slowing economy.

IRS spokesman Bruce Friedland said the first week of rebates went smoothly and the program remains on schedule.

Tax rebate payments started to be issued via direct deposit this past Monday and the Treasury Department expects to complete the program by mid-July.

Single taxpayers with adjusted gross income of less than $75,000 last year as well as joint filers with adjusted gross income of less than $150,000 were eligible for a rebate.

That works out to more than 130 million households, including at least 117 million low- and middle-income families, 20 million senior citizens living on Social Security and 250,000 disabled veterans.

For a single filer, the minimum payment is generally $300, and the maximum payment about $600. For married taxpayers filing jointly, the minimum payment is $600 and the maximum is $1,200. Taxpayers with children will receive an additional $300 per child under 17.

President Bush signed the stimulus package in February after it passed Congress with overwhelming bipartisan support.

The government hopes the stimulus package will help boost the economy as taxpayers go shopping with the extra cash. Critics contend that the rebates represent a short-term fix that will not address the underlying problems in the housing and job markets.

The effectiveness of the stimulus package depends on whether taxpayers actually spend their rebate cash. If consumers save the money or use it to pay down debt or buy imported goods, that would provide a smaller boost to the economy, critics of the program say.