Get your stimulus tax rebate faster: The IRS tells how

Want to get your tax rebate faster? File your taxes early and electronically, and arrange for direct deposit.

The IRS drove home that message today when it announced its schedule for delivering economic stimulus rebates. Folks whose federal tax forms are processed by the IRS by the April 15 deadline and who arrange for direct deposit can expect their rebates to be sent to their bank accounts no later than May 16. You're more likely to have your taxes processed by April 15 if you file electronically.

The IRS will deliver stimulus payments based on the last two digits of filers' Social-Security numbers; the lower those digits, the earlier the payment. If a couple is filing jointly, the first Social Security number on the tax return is the one that counts in determining the payment schedule.

For folks whose returns are processed by April 15 and arrange for direct deposit:
Those whose last two Social-Security number digits are between 00 and 20 are expected to get the first payments, by May 2.
Those with last digits between 21 and 75 should get their payments by May 9.
Those with last digits between 76 and 99 should get theirs by May 16.

In contrast, the IRS says it will begin to send out paper checks on May 16, even for early filers. The agency says it expects to send out the last checks to on-time filers by July 11. You may have to wait a few days extra for the checks to reach your mailbox.

If there's a problem with processing your return, your payment--whether by direct deposit or paper check--could be delayed beyond those target dates. And anyone filing for an extension will have to wait for their rebate for at least two weeks after they get their refund.

IRS spokesman Eric Smith notes that by filing electronically, you can expect your rebate from two weeks to two months sooner than if you filed by mail. Even if you owe the government, you can file now and arrange for payment on April 15; that way, even with no refund, you'll get your rebate faster.

"If you've never tried electronic filing, this is the year to do it," Smith told us. "If you're getting a refund, you'll get it sooner. If you're getting a rebate, you'll really get it sooner."

While you're waiting for the rebate, try the IRS's new economic stimulus payment calculator to determine how large a rebate you'll get. To do a proper estimate, you'll need to have filled out your 2007 Form 1040, 1040A or 1040EZ.

Comments

[Tobie Stanger (Consumer Reports)]

To Nicole, Rhonda, Jane, Stacy, Heather and Robin:

In general, you will get your rebate the same way you get your refund. If your refund comes through the mail, so will your rebate. If you arranged to get your refund direct-deposited, your rebate will come the same way. The exception is if you arranged for your refund to be direct-deposited to more than one account; in that case, your rebate will be mailed.

However, here is what H&R Block tells me about rebates and the Emerald Card: If you had your taxes prepared at an H&R Block tax office and had your federal tax refund put on the Emerald Card, you WILL receive a Direct Deposit of the Tax Rebate Payment on the Emerald Card account. However, if you received your federal tax refund on the Emerald Card through a temporary bank product--a Refund Anticipation Loan, Refund Anticipation Check, Simple Pay, or other such "settlement products," you will receive your stimulus payment as a mailed check from the IRS.

If you already have filed your tax return, it is too late to change the way your refund and rebate are delivered.

The way your refund and rebate are delivered has nothing to do with how your Social Security payment is delivered.

[Jennifer]

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 RALs or enter into any other loan or financial agreement with their tax professional cannot receive their stimulus payments by Direct Deposit and instead will get a paper check.

Q. Can my stimulus payment be directly deposited onto a stored value card or debit card where a bank product such as a RAL/RAC is not involved?

A. No. [New 4/14/08]

[Toka]

The IRS will not deposit check to emarld card.

[Whitney]

I filed my tax return early this year and had my refund direct deposited into my back account. A week after I got the refund, I had to close my checking account and reopen another one due to some fradulent activity. I assume that once the IRS sees that my account is closed, they will mail me my rebate check. Is there anyway to change my account number with the IRS to get my rebate direct deposited?

[Tobie Stanger (Consumer Reports)]

Whitney:

Here is the IRS's response:

Q: If I use Direct Deposit for my tax return refund and my bank account information later changes, what will happen when my Stimulus Payment goes out?

A. Typically, the Direct Deposit will be rejected. After the IRS receives a rejection notice, the payment will be converted to a paper check and mailed to you.

So it looks like you will have to suffice with a paper check.

[Tobie Stanger (Consumer Reports)]

To Rhonda re: child support:

The IRS treats the stimulus payment (rebate) the same way it treats your refund when it comes to child support. So if it garnishes your refund, it will also garnish your rebate.

[Rena]

I electronically filed my tax return and I have 4 children. My husband and I filed separately. He claimed 2 and I claimed the other two. My husband recieves disability benefits and I recieve the benefits for my two children that I have by my husband. I recieved irs forms to file for the rebate for the two children that recieve the benefits of behalf of thier father. I did not claim those two children on my tax return, My husband did. Who is entitled to get the rebate?

[ceejayoz]

"I was just wondering if there is a way I can get my return sooner if i give someone my checking account information?"

Unlikely - anyone offering is probably a scammer looking to steal your identity, money, or both.

[K.Jenkins]

I was told by someone that the letter received by mail regarding the rebate checks-a mass mailing-that it was supposed to be signed and returned in order to receive the check? Is this true or have I been misinformed because I've misplaced the letter???

[Sue]

Will I receive the rebate if I owe back taxes and am paying on them monthly? And will I receive the rebate if I owe back child support and it is coming out of the ss check each month?

[amanda]

I also used the h&r block prepaid mastercard.. half off my payment was RAL and the other half was not. How should I expect my stimulus payment?

[torrey gravely]

I recieved a full income tax check for the year of 2007 and in April my grilfriend and I split up. Now I have to pay child support. OK, I'm behind now because of arrears that I owe, but it's coming out of my check every week. So will i recieve a rebate check or will it go directly to her?

[Ann Jones]

can the stimulus tax money be deposited directly to the emerald prepaid Mastercard as our taxes were when we filed electronically

[Gayle]

The bank account I used for my tax refund is closed. I understand that once my tax rebate is rejected by that bank, it will be converted to a paper check. Will that be done right away or will it go out based on the last 2 digits of my social security number?

[Jennifer]

I moved after I did my taxes (no forwarding address). How do I update this information??

[jennifer]

We sent our tax payment out on apr 14 by mail. So obviously it was not processed the next day apr 15. We did fill in the portion to have our rebate direct depostied will not mailing it till the 14 delay receiving our rebate or will it come as scheduled for our last 2 of the social security #. Our payment to the irs has already cleared.

[Tobie Stanger (Consumer Reports)]

To K. Jenkins:

No, you did not have to do anything with the letter. It was just informational. The only thing you needed to do to get the rebate was to file your 2007 tax return.

Certain folks who don't normally file tax returns are also eligible, and can still file a special form before October 15th of this year to get a rebate.

See this URL at the IRS Web site for details:

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

[Tobie Stanger (Consumer Reports)]

To Amanda:

Most likely the entire rebate will come in the form of a check. The IRS says folks who received their refunds through an RAL will receive their stimulus rebates by check. The same goes for people who split their refunds into more than one account.

[Jennifer Green]

I was told by IRS accounting dept. on the phone that they are not direct depositing into any of the HRBlock Emerald Cards. So I'll be waiting on a check... fun, fun.

[Tobie Stanger (Consumer Reports)]

To Ann Jones:

Please scroll up through the comments to an answer I gave to Nicole, Rhonda, Jane, Stacy, Heather and Robin, on April 24. It should answer your question.

[Becky]

we filed our 2007 taxes and we ended up owing, so no refund.
So... does that mean a paper check or direct deposit?
In the past we have received it both ways, just not this year since we owed. Thanks!

[Tobie Stanger (Consumer Reports)]

Becky,

My guess is that you will receive a paper check. Since you didn't opt to have a refund direct-deposited, the rebate will not be direct-deposited.

[Erika]

We applied for a RAL but were turned down, so our taxes were direct deposited later onto H&R Block master card, how will we receive our rebate?

[vickie]

I NEVER GOT A LETTER IN THE MAIL TELLING ME IF I WAS GOING TO GET THE REBATE I FILED SINGLE WITH 2 DEPENDENTS AND ONLY MADE 14,000 THIS YEAR WILL I GET THE REBATE?

[Tobie Stanger (Consumer Reports)]

From what you have told me, you will receive the rebate. You need to have earned $3,000 in 2007, and to have filed a 2007 tax return with the proper information about your dependents.

The letter was just informational. You're not disqualified because you didn't get it.