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An excerpt from a MarketWatch story (full text):

SAN FRANCISCO (MarketWatch) – Almost 46 million stimulus payments totaling about $41 billion were sent to taxpayers in the three weeks ending May 16, the U.S. Treasury Department said Friday.

But at least a few of those payments ended up in the wrong bank accounts, the IRS said, confirming a story reported in the New York-based newspaper Newsday on Thursday.

“We determined that about 1,500 of these payments went to the wrong bank account and IRS is working with taxpayers and banks on a case-by-case basis to resolve this issue as quickly as possible,” the IRS said in a statement Friday.

For more information about your stimulus payment, read our previous coverage.

The following letter from the IRS was waiting in my mailbox yesterday. You better believe I tore the envelope open in two-seconds flat after seeing “economic stimulus” printed on the back of it.

Dear Taxpayer,

You are entitled to an economic stimulus payment as provided by the Economic Stimulus Act of 2008. You can expect your payment by 5/16/08. If you do not receive it within six weeks of this notice, please contact us at the number shown above.

I’m starting to get the feeling I’m being led on. First, I was looking at a direct deposit date no later than 5/2. Then, it backed up to 5/16. Now, with the letter dated May 12, I shouldn’t bother the IRS until June 23. Yes, I have talked with people who have gotten their money, but I’m still sitting here waiting like a good little taxpayer. All I have to say is show me the money!!!

If you have questions about your economic stimulus payment, read our previous coverage.

If you have direct deposit, your tax return was processed by April 15 and the last two digits of your Social Security number are between 21 – 75, your stimulus payment should be deposited no later than today.

For those of you with a SSN ending in 00 – 20, you should have had yours last Friday if you met the qualifications listed above.

Next week marks the last round (SSN 76-99) of payments for direct deposit and the start of mailed-out checks (SSN 00-09).

Check the status of your stimulus payment by calling 1-866-234-2924 or use the IRS’ online status updater.

Still have questions? Read our previous coverage.

Our FRIENDS at the IRS have some frequently asked questions that they answered for those of you wondering where the heck your stimulus checks/rebate checks/whatever you want to call them are:

According to the IRS:

Stimulus payments started going out last week, and the initial round of payments will continue on a weekly basis through mid-July. In all, nearly 130 million payments will go out this year. Last week, 7.7 million payments were direct deposited, and the first mass production of paper checks begins Thursday.

Since last week millions of Americans have visited IRS.gov and called the IRS toll-free lines. The IRS reminded taxpayers the fastest way to get answers is to visit IRS.gov, which has payment schedules and other information.

The most common question has been when people can expect their payments. Economic stimulus payments will be issued according to the last two-digits of the taxpayer’s Social Security number. For joint filers the payments will go out based on the last two digits of the Social Security number of the person listed first on the return. Payments will be made by either direct deposit or paper check, based generally on the option people chose when they filed their 2007 tax returns.

The payment schedule below is for people who filed early enough to have their tax returns processed by April 15.

Direct Deposit Payments For Returns Processed by April 15
If the last two digits of your Social Security number are: Payments will be transmitted no later than:
00 – 20 May 2
21 – 75 May 9
76 – 99 May 16
Paper Checks For Returns Processed by April 15
If the last two digits of your Social Security number are: Payments will be mailed no later than:
00 – 09 May 16
10 – 18 May 23
19 – 25 May 30
26 – 38 June 6
39 – 51 June 13
52 – 63 June 20
64 – 75 June 27
76 – 87 July 4
88 – 99 July 11
The payment schedule is a general guideline and several factors could affect payment timing. For instance, some paper returns filed but not processed by April 15 could result in payments later than the scheduled date. In addition, a small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was filed by April 15. Finally, taxpayers who file after April 15 will get a stimulus payment after their tax return is processed.

If you want to check the status of your stimulus payment, the hotline is 1-866-234-2924 or you can check the status online.
Continue reading ‘IRS has answers about your stimulus check’

Those of you who have gotten your “tax rebate” checks – and those still waiting – what are your plans for your financial windfall?

The National Retail Federation, with its rosy glasses, thinks consumers will spend $43 billion, or about 40 percent of their checks, with retailers to give them a boost much like Christmas.

I agree with others who think that most people will be spending the bulk of their checks on just buying the basics like food and gas. A bulk of the money likely will be used to pay down on some debt, too.

Wal-Mart definitely wants to cash in – the world’s ginormous retailer said it would cash stimulus checks at its stores. How nice of them! But it’s not alone. Other retail promos related to the stimulus checks:

• Kroger will add 10 percent to the value of the rebate checks when customers use them in $300 increments to buy Kroger gift cards
• Sears and Kmart will get an additional gift card in the amount of the check plus 10 percent, as long as the customers spend their ENTIRE check at one of its stores between May 14-19.

• Home Depot will offer discounts through July on Energy Star appliances and CFL bulb

Let the battle for our dollars begin!

The first round of those tax rebate “stimulus” checks go out Monday, with some 8 million taxpayers getting them a week earlier than originally announced.

The checks range from $300 to $1,200. In all, about $160 billion will be “rebated” and the hope is that the money will go back into the economy as people start buying.

Oh, they’ll be buying all right. Not the LCDs and plasmas and furniture. Instead, they’ll be paying for $3.50 gas and more expensive food.

The IRS said all checks for those who filed their tax returns on time are scheduled to deposited or mailed by July 11. And if you filed electronically and provided direct-deposit info, you’ll likely get your money faster.

I filed my tax return on April 14 and Uncle Sam managed to put back a meager amount a week later. So maybe some of us will get the tax rebate money in before July 11. We’ll need it to pay for the $4-plus gas that we’ll likely have by then.

OK, we used the PR spin from Kroger to pull you in. But, the marketing ploy is an interesting way for a retailer to try to cash in on the stimulus checks. A excerpt from a Kroger press release:

CINCINNATI, Ohio, April 16, 2008 – The Kroger Co. (NYSE: KR) said today that beginning May 2, 2008, customers can receive free groceries through a gift card program available exclusively in Kroger stores. The program allows Kroger customers to exchange their tax refund or economic stimulus checks for a Kroger gift card with an extra $30.00, $60.00 or $120.00 added to it. Gift card amounts correspond to the payment amounts outlined by the Internal Revenue Service for the federal economic stimulus program.

For example:
Load This Amount: Receive Kroger Gift Card At This Amount:
$300 $330
$600 $660 (2 gift cards valued at $330.00 each)
$1,200 $1,320 (4 gift cards valued at $330.00 each)

“Grocery bills represent a significant expenditure for the average American family. In fact, the average family of four spends between $105 and $235 per week* on food purchased at a store and prepared at home,” said David B. Dillon, Kroger chairman and chief executive officer.

Kroger customers who are interested in exchanging their refunds or economic stimulus checks should present their check and customer loyalty card at their local store’s Customer Service center from May 2, 2008 through July 31, 2008. The program is limited to one offer per household with a limit of $1,200.00.

So you’ve waited until today to file your taxes, dreading this day that you’ve known about since, oh, last year. Here are some of the things you need to know to keep Uncle Sam happy:

I can’t get it all done by midnight. What do I do?

If you don’t have enough time to finish your paperwork, you can file for an extension, but you must do it today. Submit a Form 4868, and the extension gives you until Oct. 15 to file a 2007 tax return.
But be warned – more time to file doesn’t mean more time to pay.

But what if I can’t pay right now?

The Internal Revenue Service expects full payment, even from those who file for extensions. If you can’t pay in full, the IRS will levy interest and penalties on the balance due. The IRS says it also can work with you to pay your balance in installments.

What do taxes have to do with my stimulus check?

To get the stimulus check promised by President Bush and Congress, you have to file a tax return. Even those who normally aren’t required to file a return – retirees, disabled veterans and low-wage workers, for instance – must do so this year to get a payment.

If you’re filing only to get the stimulus check, you don’t have to file today, and you don’t have to get an extension. But you will have to file a Form 1040A by Oct. 15 to receive the payment this year.

Will the post office be open late?

Post offices will be open until midnight to collect federal and state returns. In Tupelo, the office at 362 S. Thomas Street will collect returns from both the front and side drop boxes until midnight and postmark them with the deadline date.
The retail window at the Thomas Street location will be open until 10 p.m.

Any last-minute reminders?

Don’t forget to sign your forms and include a return address on the envelopes. Also, returns of more than four pages will require extra postage. Returns weighing more than 13 ounces require direct acceptance by a postal employee.

Thank you, Congress, for getting the economic stimulus package approved. Nice to know Republicans and Democrats can compromise every now and then.

While it’s a temporary boost to the overall economy, I don’t think very many people will complain about getting a check back from the government.

It is, after all, OUR money to begin with.

Spend it, save it or pay bills? Two out of three for our family, I think (spend, pay bills).

Did you hear? The Feds are giving away money and the recipients have been instructed to spend it ASAP. Under the economic stimulus package approved by the House today, as many as 117 million people will get rebate checks. Individual income tax filers will receive up to $600, working couples will get up to $1,200, and those with children will get an additional $300 per child.

I’m still deciding what I want to spend my cash on. A new couch would be nice. What are you going to buy? And, do you think this is really going to ward off the dreaded r-word?