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Beginning in May, Over 130 million households in America will receive economic stimulus payments. Recipients must file a 2007 federal tax return to be eligible for a stimulus check payment. Low income earners and Social Security recipients, who may not normally file, will need to do so to become eligible for the stimulus check.
To receive your payment faster it has been advised that you sign up for a direct deposit payment. People with low Social Security numbers will receive their checks first. For example, an 06 number will be amongst the first to receive payment.
May 2 is the date that direct deposit taxpayers will start to receive refunds. Last year it is estimated that almost 60% of refunds were through direct deposit. The government is hoping to increase that number this year.
The IRS has announced that all rebate checks will be mailed by May 16. Rebates will be garnished for those with student loans or overdue child support payments.
Economic analysts have stated that the stimulus check rebates will boost spending for about 6 months; however this will be a temporary boost to the economy. A poll shows that 45% of people plan to spend their checks on bills, 21% will use it for groceries, gas and other necessities, 18% plan to invest the money and just 16% plan to purchase luxury items such as a TV or vacation with their refund.
