Published: March 25, 2008 03:33 pm            

IRS announces economic stimuluspayment schedules, online payment

Monticello — The Internal Revenue Service announced that it will begin sending more

than 130 million economic stimulus payments starting May 2. The initial

round of weekly payments will be completed by early July.

The IRS also announced the availability of a new online calculator on

IRS.gov to help people determine the amount of their stimulus payments.

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.

"To receive an economic stimulus payment, people just need to file their

tax returns as they usually do," said IRS Acting Commissioner Linda E.

Stiff. "The payments will be automatic for the vast majority of taxpayers.

Some lower-income workers and recipients of certain Social Security and

veterans benefits who don't normally need to file a tax return will need to

do so in order to receive a stimulus payment. IRS.gov has all the

information people need to help them obtain a stimulus payment."

Stimulus payments will be sent out in the order of the last two digits

of the Social Security number used on the tax return.

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.

The IRS is also announcing today the availability of an on-line

calculator on IRS.gov to help taxpayers determine if they are eligible to

receive an economic stimulus payment and if they are, how much they can

expect. Anyone who has prepared a 2007 income tax return can use the

calculator. It will ask taxpayers a series of questions, so they should have

their 2007 tax returns handy. After answering the questions, the calculator

will provide the projected dollar value of the payment.

Please see accompanying graph for a stimulus payment schedule for tax

returned received and processed by April 15.

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, 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 October 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.

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 don't need to file a tax return, the IRS and Free File Alliance

have a special program set up to allow for free electronic filing.  IRS Free

File ­Economic Stimulus Payment is available at IRS.gov.

        

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