Economic Stimulus Payment
Perhaps you’ve heard talk of an Economic Stimulus Payment. But just what is this payment and what does it mean for you?
What Is It?
The Economic Stimulus Package was a bill signed into law at the beginning of this year to help stimulate the economy and deter an economic recession. This plan will result in checks from $300 to $600 for individuals ($600 to $1,200 for joint filers) plus $300 for each qualifying child.
Who Gets It?
Over 180 million American households will receive payments from the IRS starting in May 2007. Most taxpayers are eligible for payments, except for some high-income earners who will not receive a payment or will receive a reduced payment.
This payment is not the same as a tax return; however, you are required to file a 2007 tax return to get the payments. This applies to everyone, even low income earners and Social Security recipient who don’t normally file tax returns.
How and When?
Taxpayers who chose to receive their 2007 tax returns through direct deposit will receive direct deposit stimulus payments and all others will receive a paper check. Payments will start to go out in the beginning of May starting with direct deposit recipients and then distributed by the last two digits of Social Security numbers:
Stimulus Payment Schedule for Tax Returns Received and Processed by April 15
Direct Deposit
| Last two SSN digits: | Payment will be transmitted: |
| 00 through 20 | May 2 |
| 21 through 75 | May 9 |
| 76 through 99 | May 16 |
Paper Check
| Last two SSN digits: | Payments will be mailed by: |
| 00 through 09 | May 16 |
| 10 through 18 | May 23 |
|
19 through 25 |
May 30 |
| 26 through 38 | June 6 |
| 39 through 51 | June 13 |
| 52 through 63 | June 20 |
| 64 through 75 | June 27 |
| 76 through 87 | July 4 |
| 88 through 99 | July 11 |
Source: IRS.gov
What Should You Do With Your Payment?
A 360FinancialLiteracy.org poll surveyed nearly 4,000 visitors and asked what they plan to do with their economic stimulus payments:
- Spend it: 13%
- Save it: 31%
- Pay off debt: 48%
A little extra money can go a long way toward settling your debts and graduating you from the Debt Shield program even faster. Consider putting your economic stimulus payment in your set-aside account and settle your next debt sooner. Call Client Services at 1-888-828-4673 to make arrangements for applying these funds to your set-aside account.
More Info?
To find out if you are eligible to receive a stimulus payment and for more information check out these IRS resources:
