Stimulus Checks

Obama Stimulus Check

2009-02-08T04:48:00.000-08:00

House Democrats have recently presented what can be termed as the “Obama stimulus plan,” an $825 billion tax cut and spending proposal, part of which is a huge taxpayer bailout that addresses the ongoing recession’s effects on countless Americans.

The bill focuses on five major points:

- Taxpayer bailout for the middle class

- Job creation through infrastructure projects

- Unemployment benefits and expansion of health insurance coverage

- Modernization and reform in the economic and financial system

- State and local spending for education and health care initiatives

This new stimulus package is so far a balance between Democrat and Republican plans for taxpayer bailouts, tax cuts and infrastructure. If the bill pushes through, it will allocate $550 billion for programs in education, energy, infrastructure and science. $30 billion will be spent on road and bridge construction, which will open up job opportunities across the country. The bill will include $318 billion for non-profit organizations, state and local government units to use in education and health care.

It will also include $275 billion in tax cuts that will apply to both businesses and individuals. $850 million will be for wildfire prevention and $600 million for new cars for the federal government, a reflection of a more expansive, Democrat-backed view of how to create jobs.

The target date for the Obama stimulus plan is January 28, so that it can be sent to the Senate.

This bill will effectively strengthen economic recovery plans, together with the second stimulus package from TARP. Democrats won in a 52-42 vote for how TARP funds were to be handled, preventing a bid to block the release of the allocated money. Obama has committed to using up to $100 billion of the TARP funds to help homeowners who are facing foreclosure.

Looking for government grants that can help you with your budget in these hard times

Where’s My Refund

2008-06-03T02:40:00.001-07:00

Where’s My Refund?,” the popular Internet-based service used by taxpayers to check on their federal income tax refunds, now offers a safe and easy way to trace refund checks and update a flawed mailing address.

These enhancements allow taxpayers to start a trace for lost or missing refund checks and notify the Internal Revenue Service of an address change when a refund check goes undelivered.

“This new feature lets taxpayers take quick and easy steps to track down a lost refund,” said IRS Commissioner Mark W. Everson. “It can reduce headaches for nearly 88,000 taxpayers who wind up with undelivered refund checks each year.”

Taxpayers securely access their personal refund information through IRS.gov, the agency’s Web site. They enter their Social Security number, filing status and the exact amount of their refund. These shared secrets — data known only to the taxpayer and IRS — verify the person is authorized to access the account and make it possible to avoid delays in tracing refunds and changing an address.

Taxpayers used “Where’s My Refund?” nearly 24 million times last year and have used it more than 16 million times so far this year.

The new features offer step-by-step instructions to allow taxpayers to trace their lost checks and change or correct their mailing addresses when their refund checks have been returned to the IRS as undeliverable. When the taxpayer makes the change online, it automatically updates the IRS database and provides a date when the refund check should be received.

The new services are specialized so only those taxpayers who actually need the services will see them online. The refund trace can be started 28 days after the date the IRS says the refund check was mailed. Taxpayers who file married, filing joint tax returns must also complete and fax or mail a copy of Form 3911, Taxpayer Statement Regarding Refund. Signatures of both taxpayers must be on the form. The form is only required for those whose filing status is married, filing joint.

Taxpayers can avoid undelivered refund checks by having their refunds directly deposited into a personal checking or savings account. Direct deposit also guards against theft or lost refund checks. The option is available for both paper and electronically filed returns.

Almost 36 million taxpayers have used direct deposit for $94 billion in refunds this year. The number of direct deposit refunds is up nearly 12 percent from last year.

2008 stimulus checks

2008-06-01T23:14:00.000-07:00

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.

The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns.

Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Basic Eligibility

The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans’ benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.

The IRS emphasized that people with no filing requirement who turn in a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.

Additional Payments for Parents and Others with Qualifying Children

Parents and anyone else eligible for a stimulus payment will also receive 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.

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.

Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.

Special Circumstances for Recipients of Social Security, Railroad Retirement and Certain Veterans Benefits

Individuals who receive Social Security benefits, Railroad Retirement benefits and certain veterans’ benefits may have to follow special filing requirements in order to receive the basic amount:

Those who have already filed a 2007 return reflecting qualifying income of $3,000 or more do not have any additional filing requirements and do not need to do anything more to receive their payment.
Those who have already filed a 2007 return showing less than $3,000 in qualifying income and did not list their Social Security, Railroad Retirement or certain veterans benefits should file a Form 1040X to list those non-taxable benefits and qualify for a payment.
Those who are not required to file a 2007 return but whose total qualifying income including Social Security, certain Railroad Retirement and certain Veterans benefits would equal or exceed $3,000 should file a return reporting these benefits on Line 14a of Form 1040A or Line 20a of Form 1040 to establish their eligibility. Please note the form lines just mention Social Security, but use these lines even if your only benefits were Railroad Retirement or veterans’ benefits.

federal stimulus check

2008-06-01T22:21:00.000-07:00

Starting in late April, the Treasury began sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

Even though April 15 has passed, there is still time for retirees, disabled veterans and others who normally do not file a tax return to submit a 2007 form to receive an economic stimulus payment.

stimulus check schedule

2008-06-01T22:18:00.000-07:00

The IRS is also announcing today the availability of an online 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.

Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008.

Stimulus Payment Schedule for Tax Returns
Received and Processed by April 15

Direct Deposit Payments
If the last two digits of your Social Security number are:	Your economic stimulus 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

A small percentage of 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 the schedule above, even if the tax return was processed by April 15.

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.

To accommodate people whose tax returns are processed after April 15, the IRS will continue sending weekly payments. 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, but not before the date they would have received their payment if the return had been processed by April 15. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.

Two bureaus of the Treasury Department are involved in making the payments. 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 then forward the information to the Financial Management Service (FMS), which is the bureau of the Treasury Department that makes federal payments such as Social Security benefits, federal income tax refunds and, now, economic stimulus payments.

The IRS reminds taxpayers that they can get their stimulus payments faster by using direct deposit when they file their tax return.

government stimulus checks

2008-06-01T22:16:00.000-07:00

over 130 million American households will receive economic stimulus checks. The U.S. government is sending out the payments days ahead of schedule.To receive a payment, individual taxpayers must have a valid Social Security number, at least $3,000 in income in 2007 and have filed a 2007 federal tax return. Retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.The Internal Revenue Service is warning that there are several phone call and e-mail scams concerning the stimulus rebate. They warn to never give out private information and urge Americans to contact the government if they feel they may be a victim.

When Can Taxpayers Expect To Receive Money?
Taxpayers who received their income tax refund by direct deposit will also receive the stimulus payment via direct deposit. Those who received an income tax refund check by mail will also send the stimulus check by mail.Single taxpayers will receive up to $600; married couples will receive up to $1,200. Parents will receive an additional $300 for each eligible child under 17 years of age. Some people will not qualify for the rebate if their income exceeds a certain amount.

irs stimulus checks

2008-06-01T22:13:00.000-07:00

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. For joint filers, the payments will go out based on the person listed first on the return. Payments will be made by either direct deposit or paper check, consistent with how people filed their 2007 tax return.

People who use direct deposit also will be among the first to receive the payments starting April 28. Direct deposits will be made daily and completed on the dates listed below. Payments should be received by close of business on the dates listed below.

DIRECT DEPOSIT

Last two SSN digits:	Payments will be transmitted no later than (and received by the end of the day of):
00 through 20	May 2
21 through 75	May 9
76 through 99	May 16

If filing or preparation fees were deducted from your 2007 refund or if you obtained a refund anticipation loan or other bank product related to your regular tax refund, you will receive a check instead of a direct deposit.

Paper checks will also go out based on Social Security number. For Social Security numbers ending in 00 through 09, the paper checks will be mailed starting May 9 and will continue through May 16. A similar process will be repeated in the following weeks.

Please allow additional delivery time, perhaps 3 to 5 days, since the paper checks are being sent through the mail.

PAPER CHECK

Last two SSN digits:	Payments will be mailed no later than (and received a few days after):
00 through 09	May 16
10 through 18	May 23
19 through 25	May 30
26 through 38	June 6
39 through 51	June 13
52 through 63	June 20
64 through 75	June 27
76 through 87	July 4
88 through 99	July 11

People who file a return after April 15 will receive their economic stimulus payment, but probably 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.

economic stimulus checks

2008-06-01T22:12:00.001-07:00

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

But there are more details to know about. Find out more here and visit this page regularly for the latest updates.

Stimulus Checks

2008-06-01T22:04:00.000-07:00

WASHINGTON — The Internal Revenue Service announced today that 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 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.

Stimulus payments will be sent out in the order of the last two 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 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, 2008. 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.