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Economic Stimulus Package Facts

Apr 28, 2008 | Posted in Individual, Knowledge Sharing, News

The Economic Stimulus Package is now going to begin being distributed today - April 28, 2008. Originally, the checks were scheduled to begin arriving in your checking account this Friday.

The IRS has issued a schedule of when the checks will be directly deposited to your account or when you will receive them via mail. Here are the details:

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting April 28. The first cycle of paper checks will be mailed starting May 9 and continuing through May 16.

If you used direct deposit on your 2007 1040, then:

  • If your social security number ends with 00 through 20; you'll receive your payment April 28.
  • If your social security number ends with 21 through 75; you'll receive your payment May 5.
  • If your social security number ends with 76 through 99; you'll receive your payment May 12.

If you did not use direct deposit, then:

  • If your social security number ends with 00 through 09; you're payment will be mailed May 16.
  • If your social security number ends with 10 through 18; you're payment will be mailed May 23.
  • If your social security number ends with 19 through 25; you're payment will be mailed May 30.
  • If your social security number ends with 26 through 38; you're payment will be mailed June 6.
  • If your social security number ends with 39 through 51; you're payment will be mailed June 13.
  • If your social security number ends with 52 through 63; you're payment will be mailed June 20.
  • If your social security number ends with 64 through 75; you're payment will be mailed June 27.
  • If your social security number ends with 76 through 87; you're payment will be mailed July 4.
  • If your social security number ends with 88 through 99; you're payment will be mailed July 11.

People who file a return after April 15 will receive their economic stimulus payment, but probably about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year. See the online calculator for an estimate of the amount you will receive.


Additional Information

What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return.

Are you eligible? The vast majority of people who file a 2007 income tax return qualify, and many who don't regularly file a tax return may qualify as well. You're eligible if you have a valid Social Security Number (SSN), can't be claimed as a dependent on a tax return and have either an income tax liability or "qualifying income" of at least $3,000. Qualifying income includes any combination of earned income and certain benefits from Social Security, Veterans Affairs or Railroad Retirement.

Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment — if only one has a valid SSN, neither can receive the payment.

How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.

The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.

Can you estimate your payment? The IRS has created an "online calculator"http://www.irs.gov/app/espc/ that will allow you to answer a few questions and get a quick estimate of your payment amount.

How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.

More facts can be found on the IRS website

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