Receiving Your Stimulus Check: Answered Questions About Government-Issued Payment

Everybody is buzzing with rumors about the government-issued 2008 stimulus payments. Some are saying that they've been delayed, and others say they've received them. And who's really getting them? More importantly, do we have to pay this back? Let's skip the talk and get right to the answers.

Who gets a stimulus payment?
According to the IRS Web site, most people with a 2007 net income tax liability will qualify. This includes most people who get tax refunds. To even think about qualifying, though, you must have filed a 2007 federal income tax return. Some filers, such as those who are claimed as dependents on another person's tax return or high-income filers may not qualify. To find out for sure, use this calculator: www.irs.gov/app/espc/.

When will I receive my payment?
When you receive your payment all depends on two things: the last two digits of your social security number and whether you chose direct deposit or mailed check on your 2007 tax return. If you chose direct deposit, then match the last two digits of your social security number with the list below to see when your payment will be deposited by:

00 through 20: May 2nd
21 through 75: May 9th
76 through 99: May 16th

If you chose to be payed via mailed check then your payment won't even be started to be mailed until May 9th. See the list below for the the date when your check will be mailed by.

00 through 09: May 16th
10 through 18: May 23rd
19 through 25: May 30th
26 through 38: June 6th
39 through 51: June 13th
52 through 63: June 20th
64 through 75: June 27th
76 through 87: July 4th
88 through 99: July 11th

Keep in mind that for a social security number with the last two digits of 19 through 25, for example, your payment will be mailed between May 23rd and May 30th. Once it is mailed, it could arrive as early as 3 days, and as late as 2-3 weeks after the initial shipping date.

Do we have to pay this back?
Now this is certainly the question on everybody's mind. No, you do not need to pay back the stimulus payment, but it will be listed on your 2008 tax return. Basically, there is a one time tax cut being issued in 2008 and this stimulus payment is an advance on that. If the rebate issued is more than what the tax rebate would have given you, you do not need to pay back the extra. Likewise, if you don't receive a rebate this year and you have any liability next year (or your liability next year is greater than your stimulus payment) then you will benefit from the tax cut. Let's make it simple and cut to the IRS' answer to this question:

"No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return."

Is the stimulus payment taxable?
We're gonna let the IRS handle this question as well. Taken directly from the IRS website: "No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received."

Is there a way to see the status of my payment?
Yes! Simply go here:

https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC

on the IRS website and fill in the required information to see if there is any status update on your stimulus payment.