IRS Releases Schedule for Economic Stimulus
Payments, Fastest is Direct Deposit
Payments to go out weekly starting May 2 based on
Social Security number
March 18, 2008 - The Internal Revenue Service
announced yesterday that it will begin sending more than 130 million
economic stimulus payments on May 2 and that the fastest way to receive
the payment is with electronic filing and direct deposit.
The initial round of weekly payments will be
completed by early July, but only for those who file a tax return by
April 15. That includes senior citizens who may not normally file a
return.
Stimulus payments will be made by direct deposit to
people who choose to receive their 2007 income tax refunds through
direct deposit. All others will receive their economic stimulus payments
in the form of a paper check.
The IRS reminds taxpayers that they can get their
stimulus payments faster by using direct deposit when they file their
tax return.
In addition, the IRS urges taxpayers to file
electronically. For people who normally dont need to file a tax return,
the IRS and Free File Alliance have a special program set up to allow
for
free electronic filing.
Stimulus payments will be sent out in the order of
the last two digits of the Social Security number used on the tax
return.
Seniors Must File Tax Return
to Get Stimulus Check
Because the IRS will use the Social Security number
to determine when checks are mailed, taxpayers may receive their checks
at different times than their neighbors or other family members. On a
jointly filed return, the first Social Security number listed will
determine the mail-out time.
The IRS expects to make about 34 million payments
within the first three weeks after the payment schedule begins May 2.
With more than 130 million households expected to receive stimulus
payments, more than 25 percent of the payments will be made in the first
three weeks.
Taxpayers who choose direct deposit on their
federal income tax returns can expect to receive their economic stimulus
payments between May 2 and May 16 provided their returns were received
and processed by April 15, 2008. For taxpayers who did not choose direct
deposit on their tax return but whose returns were processed by April
15, the paper checks will be in the mail starting May 16, with the
initial mailings completed by around July 11.
Stimulus
Payment Schedule for Tax Returns
Received and Processed by April 15
Direct Deposit
Payments
If the last two digits of your Social Security number are:
Your economic stimulus payment deposit should be sent to your
bank account by:
00 20
May 2
21 75
May 9
76 99
May 16
Paper Check
If the last two digits of your Social Security number are:
Your check should be in the mail by:
00 09
May 16
10 18
May 23
19 25
May 30
26 38
June 6
39 51
June 13
52 63
June 20
64 75
June 27
76 87
July 4
88 99
July 11
At right are the schedules for economic stimulus
payments related to tax returns processed by April 15, 2008.
A small percentage of tax returns will require
additional time to process and to compute a stimulus payment amount. For
these returns, stimulus payments may not be issued in accordance with
the schedule above, even if the tax return was processed by April 15.
All or part of an economic stimulus payment may be
applied to back taxes or certain other debts of the taxpayer, such as
delinquent child support and student loans. In such cases, the IRS will
send a letter to the taxpayer explaining the offset.
To accommodate people whose tax returns are
processed after April 15, the IRS will continue sending weekly payments.
People who file tax returns after April 15 and
receive a refund can expect to receive their economic stimulus payments
in about two weeks after receiving their tax refunds, but not before the
date they would have received their payment if the return had been
processed by April 15.
To ensure taxpayers receive their stimulus
payment this year, they must file a tax return by Oct. 15.
Two bureaus of the Treasury Department are involved
in making the payments. The IRS will calculate the amount of each
economic stimulus payment based on the tax year 2007 income tax returns
it receives. The IRS will then forward the information to the Financial
Management Service (FMS), which is the bureau of the Treasury Department
that makes federal payments such as Social Security benefits, federal
income tax refunds and, now, economic stimulus payments.
March 18, 2008 - The Internal Revenue Service
announced yesterday that it will begin sending more than 130 million
economic stimulus payments on May 2 and that the fastest way to receive
the payment is with electronic filing and direct deposit.
Stimulus payments will be made by direct deposit to
people who choose to receive their 2007 income tax refunds through
direct deposit. All others will receive their economic stimulus payments
in the form of a paper check.