Most Frequently Asked Questions
Regarding Stimulus Payments
Q. When will I get my payment?
A. Payments are going out now for those returns processed
by April 15 and will continue on a weekly schedule through mid-July. See the
payment schedule for both direct deposit and paper checks for further
information. Payments will continue through 2008 for returns filed after April
15.
Q. I filed after April 15 and the payment date for my Social Security number
has passed. How long will it take for me to get my stimulus payment?
A. It will generally take a minimum of six weeks after
you file your return to get your stimulus payment.
Q. I filed my return on time, but I haven't received my
stimulus payment, even though the payment date listed for my Social Security
number has passed. Why?
A. In general, the payment schedule only applies if your return
was received and the IRS finished processing it before April 15. If you filed
your return on time, but close to the April 15 deadline, the IRS may not have
finished processing it before April 15.
Processing times for tax returns and stimulus payments vary. If
you are getting a regular income-tax refund, the IRS will send you that refund
first. Normally, your stimulus payment will follow one to two weeks later.
If you are not expecting a regular tax refund, your stimulus
payment generally should arrive a minimum of six weeks after you file.
Also, if you chose direct deposit and requested a Refund
Anticipation Loan (RAL) or had your refund deposited into more than one account,
you will receive a paper check based on the distribution schedule for paper
checks.
Q. I chose direct deposit for my 2007 tax refund but also requested a refund
anticipation loan (RAL) from my preparer. How does that affect my stimulus
payment?
A. Taxpayers who use Refund Anticipation Loans (RALs) or enter
into any other loans or financial agreements with a tax professional, such as
agreeing to have return preparation fees deducted from their refunds, cannot
receive their stimulus payments by direct deposit and instead will get paper
checks based on the paper check distribution schedule.
Q. Will the IRS allow me to provide it with direct deposit
information, if I didn't include that information on my original tax return?
A. You cannot correct direct deposit information or request a
direct deposit after a return has been filed.
Q. Is there something I can do to prevent my stimulus payment
from being automatically deposited into the account that I identified for the
direct deposit of my regular refund?
A. Generally, if you designated direct deposit on a tax return,
the stimulus payment will go to the account number you designated. If the
account number is no longer active, the IRS will send you a paper check. This
process may take several weeks.
Q. I received my stimulus payment, but it was less than what
my friends and neighbors received. Why?
A. Your economic stimulus payment is based on information
provided on your 2007 income tax return.
Many but not all taxpayers qualify for the maximum basic payment
of $600 for singles or $1,200 for married couples. Many parents are also
receiving an additional $300 for each qualifying child, born after Dec. 31,
1990.
Your payment may be less than the maximum for one or more of the following
reasons:
-
You are single and your net income tax liability is less
than $600. If you file Form 1040 net income tax liability is the amount
shown on Line 57, plus the amount on Line 52.
-
You are married and your net income tax liability is less
than $1,200.
-
You are single and your adjusted gross income (AGI) is more
than $75,000. On Form 1040, AGI is the amount on Line 37.
-
You are married filing a joint return and your AGI is more
than $150,000.
-
You owe back taxes that reduced your payment.
-
You have non-tax federal debts such as unpaid student loans
or child-support obligations that reduced your payment.
Around the time you receive your payment, you will also receive
a notice from the IRS explaining how your payment was calculated. It is
important to keep this notice as a record of your economic stimulus payment. In
addition, you'll get a separate notice if you owe back taxes or non-tax debts
that were offset or deducted from your stimulus payment.
The " Stimulus Payments: Answers to Frequently Asked Questions"
section of this Web site has further details on how these payments are figured.
Q. The notice I received shows I should have gotten more than
the government actually deposited into my bank account. What happened?
A. It could be that the amount deposited into your bank account
was what remained of your stimulus payment after it was reduced, or offset to
collect back taxes or other debts such as a student loan or child support. If
this is the case, you will receive a separate notice about two weeks after you
receive your stimulus payment and notice.
Q. I have moved since filing my 2007 tax return. How will my
payment reach me?
A. You should file a Form 8822 with the IRS and a change of
address notice with the U.S. Postal Service. This will ensure your check is sent
to your new address. Without your current address, the check could be returned
to the IRS as undeliverable.
Q. I chose direct deposit for my 2007 tax refund but also
requested my electronic filing and/or tax preparation fees be deducted from my
refund. Does that affect my stimulus payment?
A. If you requested that your electronic filing or tax
preparation fee be deducted from the amount of your refund, you have entered
into a financial agreement with the tax preparation provider or e-file software
company for a refund anticipated check (RAC). Both Refund Anticipation Checks (RACs)
and Refund Anticipation Loans (RALs) are bank products. The money that is
deposited into your bank account comes from the financial institution associated
with your electronic filing software provider or tax preparation provider, not
directly from the IRS. Taxpayers who use RALs, RACs or enter into similar loans
or financial agreements with their tax professional or tax software companies
will not receive their economic stimulus payments by direct deposit. Instead
they will get a paper check that will be issued according to the schedule that
has been published for paper check distribution.
Q. I chose to have my tax refund deposited onto a "stored
value card" or debit card through the professional tax preparer I used. Will my
stimulus payment be directly deposited onto that same stored value card or debit
card account?
A. Yes, unless you requested a refund anticipation loan (RAL)
through your tax professional or the stored value card or debit card account has
been closed, in which case you will receive your economic stimulus payment by
paper check. Because the IRS must wait until the money is returned, this process
may take several weeks.
Q. I received a stimulus payment and I want to verify that it
is correct. How do I figure the payment, myself?
A. The easiest way to figure the amount is to use the Economic
Stimulus Payment Calculator on the IRS.gov Web site. Essentially, there are two
parts to the stimulus payment: a basic amount based on tax liability, filing
status or other qualifying income, if there is no tax liability, and an
additional amount based on whether a qualifying child is reported on the return.
Basic Amount of Payment: If you had a net income tax liability
for 2007, you will generally receive a payment, unless you can be claimed as a
dependent on someone else's return, had higher income or do not have a valid
Social Security number.
Your net income tax liability is one of the following:
-
On Form 1040, the amount shown on Line 57 plus the amount on
Line 52;
-
On Form 1040A, the amount shown on Line 35 plus the amount
on Line 32; or
-
On Form 1040EZ, the amount on Line 10.
NOTE: Net income tax liability is not the same as the amount of
tax withheld from your pay, the amount of your refund or the balance due on your
return.
Your stimulus payment is equal to your net income tax liability,
but no more than $600, if you are single, or $1,200, if you are married filing a
joint return.
If you had no net income tax liability for 2007, you are usually
getting a minimum payment of $300, if you are single, or $600, if you are
married filing jointly, as long as you had qualifying income of at least $3,000
in 2007. To figure your qualifying income, add together the following amounts:
-
Wages that are reported on Form W-2;
-
Net self-employment income that is taken into account in
computing taxable income;
-
Social Security benefits reported in box 5 of the 2007 Form
SSA-1099 you received in January 2008. If you don't have this form, you can
estimate your annual benefit by multiplying your monthly benefit by the
number of months (usually 12) you received benefits during 2007;
-
Certain Railroad Retirement benefits reported in box 5 of
the 2007 Form RRB-1099 you received in January 2008;
-
Veterans' benefits received in 2007, including veterans'
disability compensation and disability pension or survivors' benefits
received from the Department of Veterans Affairs. You can estimate your
annual benefit by multiplying your monthly benefit by the number of months
during 2007 you received benefits;
-
Nontaxable combat pay if you chose to include it as earned
income on your 2007 return.
Note: Supplemental Security Income (SSI) is not considered
qualifying income and is not included for the purpose of establishing
eligibility for the stimulus payment.
Additional Amounts for Qualifying Child: If you qualify for the
basic amount, you may receive an additional $300 for each qualifying child. To
qualify, a child must be younger than age 17 and have a valid Social Security
number.
Phase Out: Your payment is reduced, or you may receive no
payment at all based on your income level. The stimulus payment begins to phase
out for individuals with adjusted gross incomes (AGI) over $75,000 and married
couples who file a joint return with AGI over $150,000. The combined payment is
reduced by 5 percent of the income above the AGI thresholds. Your AGI is the
amount shown on:
-
Form 1040, Line 37
-
Form 1040A, Line 21, or
-
Form 1040EZ, Line 4
Q: I normally don't need to file a tax return. How do I know
if I'm one of those people who may be eligible to receive an economic stimulus
payment?
A: This group includes some recipients of Social
Security, Railroad Retirement or veterans' benefits as well as taxpayers who do
not make enough money to normally have to file a 2007 tax return. For example,
this can include low-income workers, those who receive Social Security benefits
or those who receive veterans' disability compensation, pension or survivors'
benefits from the Department of Veterans Affairs. These people will be eligible
to receive a payment of $300 ($600 on a joint return), if they had at least
$3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain
Railroad Retirement benefits, certain veterans' benefits and earned income, such
as income from wages, salaries, tips and self-employment. For people filing
joint tax returns, only a total of $3,000 of qualifying income from both spouses
is required to be eligible for a payment. |
