The Internal Revenue Service announced that it will begin sending more than 130 million economic stimulus payments starting May 2nd. The initial round of weekly payments will be completed by early July. The economic stimulus payment schedule for related to tax returns processed by April 15th, 2008 has been announced.
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 2 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 3 weeks after the payment schedule begins May 2nd. With more than 130 million households expected to receive stimulus payments, more than 25% of the payments will be made in the first 3 weeks.
Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2nd & May 16th, provided their returns were received and processed by April 15th, 2008. For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by April 15th, the paper checks will be in the mail starting May 16th, with the initial mailings completed by around July 11th.
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.