By SCOTT NILES Courier staff writer
March 25, 2008 01:12 am
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OTTUMWA — It’s tax season mixed in with Christmas this year.
The Internal Revenue Service has announced it will begin sending more than 130 million economic stimulus payments beginning May 2.
“To receive an economic stimulus payment, people just need to file their tax returns as they usually do,” said IRS Acting Commissioner Linda 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.”
“This is the first time in a long while that the government has given out payments like this. There was one other time when they did it when the economy was slow, but it hasn’t been for quite a while,” said H&R Block Tax Preparer Mertic Cary in Ottumwa.
When the government issued tax rebates checks earlier this decade, taxpayers were required to include that information on the following year’s income tax returns.
“I think it will be the same with the stimulus payments,” Cary said.
The deadline to file for the first round of stimulus payments is April 15, but if paperwork is not filed by then, people will still receive their payments at a later date.
Liberty Tax Service Preparer Danna Hardt of Ottumwa said stimulus payments are also done electronically and are free of charge at their office.
Their stimulus payment filings are only on Monday and Thursday from 9 a.m. to 2 p.m.
“It’s beneficial if the people make an appointment first,” Hardt said.
H&R Block does have a minimum charge for filing stimulus payments.
“We recommend that people go to the free places to get their stimulus payments done,” Cary said.
Though tax season is wrapping up, local tax preparers said they have still been seeing steady rush of clients.
“We have been getting people coming in on a regular basis for both regular taxes and stimulus payments,” Hardt said.
Cary said they have already hit their peak time, but they still anticipate some late arrivals.
“We will still get some people coming in April,” she said. “Usually it is the people that are going to owe, but not always.”
The IRS press release also said taxpayers should be advised that if they want to receive their government payments quicker they are advised to arrange for direct deposit.
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.
Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2-16 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.
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.
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,” according to IRS Spokesperson Christopher Miller.
On a jointly filed return, the first Social Security number listed will determine the mail-out time.
The IRS also announced the availability of a new online calculator on IRS.gov to help people determine the amount of their stimulus payments.
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.
Scott Niles can be reached at (641) 683-5360 or via e-mail at sjniles@mchsi.com.
Direct Deposit Payments Below are the schedules for economic stimulus payments related to tax returns processed by April 15.
Payments that will be deposited or mailed will be issued at different times depending on the last two digits of your Social Security number.
Direct Deposit
Last digits of SS number Payment deposit date
00 – 20 May 2
21 – 75 May 9
76 – 99 May 16
Paper Check
Last digits of SS number Payment sent 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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