'Economic stimulus' checks start in May, and you can speed up process

By Claudia Buck

Mar. 23, 2008 (McClatchy-Tribune Regional News delivered by Newstex) --
Get ready, here they come. If you're among the 130 million Americans who are counting on getting IRS "economic stimulus" checks, take note: The first batches will start going out in six weeks.

Starting May 2, the IRS will begin issuing the first payments -- typically $600 for individuals or $1,200 for a couple -- for those who file a tax return by April 15.

And here's a little incentive: If you want it fast, ask for direct deposit when filling out your tax return, advises IRS spokesman Bill Steiner.

"Even if you owe money on your taxes, keep in mind that stimulus payments are a separate check," said Steiner. "So if you've asked for direct deposit, it'll be there significantly faster than the paper check."

If you opt for direct deposit, the payments will start hitting bank accounts weekly between May 2 and May 16. If you requested a paper check, you'll have to wait until May 16 for the first checks to be mailed, continuing on a weekly schedule through July 11.

Don't fret if your check doesn't arrive at the same time as your brother's or your neighbor's. The payment schedule isn't based on your household income or when you filed, but on a numeric system: the last two digits of your Social Security number.

For instance, if the last two digits of your Social Security number are 37, and you've asked for a paper check, it should be in the mail by June 6. (See the accompanying chart to find out when your stimulus check will arrive or search online at: www.irs.gov.)

If it's a joint return, the IRS will use the first Social Security number listed on the tax form.

The stimulus payments are part of a $168 billion plan by the federal government to plump up the deflating economy. The hope is that consumers will freely spend their one-time windfall.

How can you be sure to get one? For most regular taxpayers who file by April 15, getting a stimulus payment will be automatic. File your taxes and the IRS will compute and process your payment.

If you don't normally file a tax return, either because you're retired or on limited income, you'll need to fill out a 1040A tax form, which can be found at most libraries, tax preparation centers or by calling the IRS toll-free on weekdays, (800) 829-1040. You must have a Social Security number and at least $3,000 in annual income, including Social Security or certain veterans' benefits.

You aren't eligible if you are claimed as a dependent on someone else's tax form.

Wondering how much you'll get? The IRS has a new online calculator that asks detailed questions to compute your estimated stimulus check. Go to www.sacbee.com/links to access it. You'll need your tax form handy to fill it out.

You can also find free online filing help and tax forms at www.irs.gov.

Be forewarned: If you have any outstanding debts, such as student loans, delinquent child support or unpaid back taxes, the IRS may use some or all of your check to cover those bills. If that happens, it will send you a letter of explanation.

One last note: Not everyone will get an IRS check. The ceiling on stimulus checks is $75,000 in adjusted gross income for individuals and $150,000 for a couple filing jointly. If you're over those limits, the government figures you're already stimulated enough.

Newstex ID: KRTB-0178-23960615