Where is My Economic Stimulus Rebate?

For those individuals who have been expecting an early-May economic stimulus rebate from the government, the initial direct deposit period has come and gone. If you were one of those expecting a direct deposit by May 16th, there are a number of reasons that may have delayed or denied your rebate.

If you did not file your 2007 tax return by the April 15th filing deadline, your stimulus rebate could be delayed as long as October-December, depending on when the IRS receives your 2007 federal tax return. If you do not file a 2007 return at all, you will not receive the advance stimulus rebate, though you may be eligible to receive it when you file your 2008 tax return next year.

Or, if you paid a tax professional or used a software program that gave you the option to have your tax preparation fees or electronic filing fees withheld from your refund, you will receive your stimulus via check even if you received your refund by direct deposit. The reason for this is that your initial refund third-party routed through an outside financial institution, such as HSBC, before you received it (e.g. the IRS deposited to HSBC who withheld your tax prep fees before directly depositing the remaining refund into your bank account).

Another reason for not having received an early economic stimulus rebate is that you or your spouse if filing a joint return owed back taxes, child support, or another form of government debt. If that is the case, the IRS will use all or a portion of your rebate to pay the outstanding debt or other financial obligation before any monies are distributed to the taxpayer.

Additionally, if you have fallen behind in filing your prior year tax returns you will be required to fill those prior years before receiving your rebate even if you filed your 2007 tax return on time. So, if you did not file in 2004, 2005, or 2006 you may need to get those returns filed before receiving your rebate. Also, if there were any problems identified with your 2007 return that the IRS is requested be corrected then that could delay the receipt of your refund as well.

These are the most common reasons for not having received your economic stimulus rebate via direct deposit by May 16th, 2008. Those who are awaiting checks should see those arriving before the end of July if they filed their 2007 return on time. The IRS website http://www.irs.gov has a link to the distribution schedule for direct deposits and checks by the taxpayer's last two digits of his or her social security number. If you should have received a direct deposit and you do not fall under any of the above mentioned categories you may need to contact the IRS and/or your financial institution to see if there is another reason for the delay.