Monday, May 05, 2008
What do you do when recession is imminent? If you're the federal government, the answer is simple: give people more money to spend (and hope they spend it instead of keeping it under the mattress; there's a recession after all). To that end, the Internal Revenue Service is sending out millions of economic stimulus payments, starting May 2.
If you are eligible, you are looking at an extra $600 in your bank account. Married couples will get $1200, and each child adds an extra $300 to your stimulus check.
If you filed your tax return using direct deposit, you're in luck because you are first in line for a stimulus payment. People wilh the last two digits of their social security numbers between 00 and 20 will have their payments sent by May 2, 21 to 75 by May 9, and 76 through 99 by May 16.
If you paid your taxes by check, expect a check in return from the IRS according to this schedule:
Who will be getting a check? "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." That amounts to over 130 million households.
To see if you qualify, you can even use the official IRS Economic Stimulus Payment Calculator. Be sure to have your 1040 ready.
For late filers, remember to file your tax return by October 15 so you will be eligible for a stimulus check.