IRS reports Economic Stimulus Payments on schedule

Everyone’s talking about it.  The IRS is sending economic stimulus payments starting this month to more than 130 million households under the Economic Stimulus Act of 2008.  Even if you do not normally file an income tax return because you are classified as low-income, receive Social Security or Railroad Retirement benefits, or even receive benefits from the Department of Veterans Affairs, you could receive a check soon.  Not all taxpayers, however, will receive a Stimulus Payment; in particular, single taxpayers reporting more than $75,000 of adjusted gross income receive a reduced amount up to $87,000, above which they get no stimulus payment at all; for joint filers, the phase-out range is $150,000 to $174,000.  Nevertheless, the IRS reports that most taxpayers will be receive full Stimulus Payments: $1200 for joint filers and $600 for all other filing status.

IRS has promised to begin making payments in early May.  If you filed your 2007 income tax return on time and without an extension, so that IRS received your return by April 15, you will likely receive your stimulus payment earlier than other taxpayers.  If you filed by April 15 and chose the direct deposit method for receiving your tax refund on your return, your payment should arrive on May 2, 9, or 16.  Otherwise, IRS has promised that it will mail out checks between mid-May and mid-July.  The order of the payments will be based on the last two digits of your Social Security number. 

In addition, if you have not yet filed an income tax return, remember that the deadline for filing on extensions is October 15, 2008.  You will still be eligible for an economic stimulus payment after filing on the extension; you just won’t receive the payment as soon.