IRS rebate checks to hit the mail May 2

Taxpayers in Yuma County have a little extra incentive to get their tax returns to the Internal Revenue Service by April 15.

The IRS will begin sending more than 130 million economic stimulus payments starting May 2 for those who filed their tax return by April 15, based on the last two digits of a person's Social Security number.

"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 in a news release. "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, she said. She advises them to go online to IRS.gov for information on how to obtain a stimulus payment.

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. 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.

A few 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 that schedule, even if the tax return was processed by April 15.

A new online calculator is now available on IRS.gov to help people 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.

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.

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. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.

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 forward the information to the Financial Management Service, which will send out the payment.

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SCHEDULE FOR DIRECT DEPOSITS

Below is the schedule for direct deposit of economic stimulus payments for tax returns received and processed by April 15. Based on the last two digits of your Social Security number, your payments should be deposited by:

- 00-20: May 2

- 21-75: May 9

- 76–99: May 16

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SCHEDULE FOR PAPER CHECKS

Below is the schedule for direct deposit of economic stimulus payments for tax returns received and processed by April 15. Based on the last two digits of your Social Security number, 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

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Sun staff writer Joyce Lobeck contributed to this report. She can be reached at jlobeck@yumasun.com or 539-6853.