The IRS Stimulus Payments are slowly being released to taxpayers between May and mid-July. Clients with a tax refund that was directly deposited to their bank account by the IRS should have received their Stimulus Payment already. Taxpayers who either owed the IRS or received a refund by check or used a “bank product” (refund anticipation loan or other product by which the preparer fees were withheld from the refund) will receive a check. For the official IRS payment schedule, please visit http://www.irs.gov/irs/article/0,,id=180250,00.html.
Stimulus Payment FAQs
Q. I did not receive my Stimulus Payment on the date the IRS schedule shows. What can I do?
A. First, check online with the IRS at https://sa1.www4.irs.gov/irfof/IRServlet?app=IRACTC to verify that your payment has been processed (some delays are going to be inevitable, when you consider they are processing over 130 million payments). If you have not received your direct deposit within 5 days or your check within 28 days from the date the IRS claims it was sent, contact the IRS at (800) 829-1040 be use a speakerphone, as you can expect a lengthy hold time.
Q. I am married with two children and received $XXXX.00. My next door neighbor is married with 2 children and they received $1800.00. Why am I being short-changed?
A. The basic Stimulus Payment ($600 for a single person, $1200 for a married couple) can be no more than the income tax on the return. You can find your tax on line 10 (Form 1040-EZ), line 37 (Form 1040A) or line 57 (Form 1040). Note that special rules apply if you claimed the child tax credit. Within a week or two after processing the payment you should receive an IRS notice indicating how the payment was calculated. You can also verify the Stimulus Payment amount by visiting the IRS website http://www.irs.gov/app/espc/ (have a copy of your 2007 return handy).
Q. I received a notice that my Stimulus Payment was subject to an “offset”. What does that mean?
A. If you have certain outstanding financial obligations the IRS may forward your Stimulus Payment to another agency. This is typically the result of unpaid federal/state income taxes, student loans in “default” status, child support in arrears, etc. If the agency was not specified in the letter, contact the IRS at (800) 829-1040 to find out where your Stimulus Payment was sent.
Q. Is the Stimulus Payment taxable?
Q. If I didn’t receive the full $600 (or $1200) how can I recoup the difference?
A. If you are required to pay taxes in 2008 you may be able to reduce the tax by the portion of the Stimulus Payment you did not receive. This credit may be available if your income was too low (or too high) to allow a full Stimulus Payment.
Q. I closed my bank account after my tax refund was deposited. What will happen to my Stimulus Payment?
A. The IRS will attempt to have the Stimulus Payment electronically deposited to the bank account shown on the tax return. If the electronic deposit cannot be processed by the bank it will be returned to the IRS and a check will be issued. This could take several weeks (or months) to process.
