Originally published: March 18. 2008 3:01AM
Last modified: March 18. 2008 12:43AM
The Internal Revenue Service announced Monday 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 www.IRS.gov to help people determine the amount of their stimulus payments.
Stimulus payments will be made by direct deposit to people who chose 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. Below are the schedules for economic stimulus payments related to tax returns processed by April 15.
Direct deposit payments
If the last two digits of your Social Security number are: Your 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
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. 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 also launched 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.
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.
