Wayne County Outllook
Monticello
Mon, May 12 2008
—
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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