Saturday, May 3, 2008

Where's My Money?

OK, so your friends are getting their stimulus checks, when will you really get yours to spend?

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 by the date listed below:

Last two SSN digits: Payments will be transmitted no later than:
00 through 20 -May 2
21 through 75 -May 9
76 through 99 -May 16

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.

Last two SSN digits: Payments will be mailed no later than:
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 about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year.

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Posted By: Joe on Saturday, May 03, 2008
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Thursday, April 24, 2008

Will The Stimulus Money Be Taxed?

Someone asked if the stimulus money that will be arriving next month will be taxed.

When you do your 2008 income tax return, you will be asked somewhere in the preparation process how much of an advance you got in 2008. (By the person doing your tax return, by the software program you are using, or if doing by hand, the instructions will have you enter it on a worksheet.) This is not in order to tax you on it. This is to calculate to see whether or not you got the full credit and, if not, you will get the remainder of it that is still due you when you file your 2008 return.

Some people who do not receive the stimulus funds now will get it when they file their 2008 tax return. You have to take into account what you did receive so that you are not getting it twice. On the other hand, maybe you end up getting more than you should have if it had waited until you filed the 2008 return and in that case, you do not have to pay any of it back. I am not sure exactly how this is all figured, but the child tax credit is increasing to $1300 (therefore you will get $300 for every dependent child on your 2007 tax return who will still be under age 16 by the end of 2008). If you cannot for some reason claim that child on your 2008 return you still get to keep the $300 you got for that dependent.

To sum it up, the stimulus check, is a one time tax credit just paid in advance. Your taxes for next year will not be affected.

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Posted By: Joe on Thursday, April 24, 2008
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