Timing Is Everything! We all know the deadline for filing your 2007 taxes is quickly approaching. But you may want to be ahead of the curve if you want your tax rebate sooner, rather than later. That’s because tax rebates will start going out on May 2… but only to taxpayers who have their returns processed–not just sent–by April 15. The closer it gets to mid-April, the more the IRS gets backed up to process the flood of returns–sometimes taking a couple of weeks to complete. E-filers will get their rebates more quickly, since electronic returns can be processed faster. However, even e-filers should have their returns in by April 10 to be safe.
Would You Like Paper? Or Electronic? Tax rebate checks will start going out on May 2. But here’s the deal… taxpayers who chose direct deposit will be first in line. According to the IRS, all direct deposit tax rebates will be wired between May 2 and May 16. Paper checks won’t start going out until May 16, and aren’t expected to be completed until mid-July.
What’s Your Number? The IRS needs some way to determine the order of distributions – but they’re not going alphabetically. Instead, tax rebates will be distributed in order of the last two digits of your Social Security number…the lower your number, the sooner you’ll receive your payment. For a detailed breakdown of the order, take a look at the IRS’s Stimulus payment schedule @ http://www.irs.gov/irs/article/0,,id=180250,00.html
About seven to ten days before your rebate is sent, the IRS will send you a notice informing you how much it will be. If you signed up for direct deposit, however, you’ll probably receive that information in the mail about the same time your rebate is deposited into your account, since direct deposit transactions are processed so quickly. But you don’t have to wait that long to determine approximately how much you’ll receive. To calculate your approximate rebate, visit the new online stimulus calculator on the IRS website @ http://www.irs.gov/app/espc/ .
Finally, it’s important to remember that the rebate check will not be counted as taxable income and will not reduce your refund or increase the amount you owe when you file your 2008 return. However, if you owe back taxes, the IRS will apply your rebate to that bill and send you whatever is left over.
For more information, visit the Economic Stimulus Package Information page on the IRS website @ http://www.irs.gov/newsroom/article/0,,id=179211,00.html . You can even read detailed answers to Frequently Asked Questions @ http://www.irs.gov/newsroom/article/0,,id=179181,00.html .