If your anything like me you were expecting more money on your stimulus check. Well here's the deal...
In recent weeks, tens of millions of Americans have been flooding the Internal Revenue Service with questions about the government's economic-stimulus payments. Some callers want to know why their payment hasn't arrived and when it will. Others want to know why they didn't get as much as they had expected.
These were among the issues aired at a congressional hearing last week at which IRS officials generally drew praise for handling a massive job relatively smoothly and on short notice. But officials also say the unexpected avalanche of questions has led to unusually long delays for many callers trying to reach the IRS on this and other tax questions. There have also been a few glitches -- including one, scheduled to be remedied next month, affecting hundreds of thousands of parents.
"As with any undertaking this large and complex, it has not been without hiccups," said IRS Commissioner Doug Shulman.
The government began sending payments April 28. So far, about 85.2 million payments totaling $70.78 billion have been distributed. IRS officials estimate 124 million payments totaling $100 billion will be made this year. Those eligible are getting as much as $600 apiece -- or $1,200 for married couples filing jointly -- plus $300 for each eligible child under 17.
But many people are getting less -- or nothing at all -- because their incomes exceeded certain levels. The amount of the stimulus payment begins to phase out for those with adjusted gross incomes over $75,000, or $150,000 for joint filers. People with income above those levels lose 5% of the dollar amount above the threshold -- such as $50 for each $1,000 amount over the limit.
The Bush administration is hoping the payments will pump fresh life into the struggling economy. But some economists say the results have been disappointing so far and that any impact on consumer spending is likely to be short-lived. "It's true that non-auto retail sales are enjoying a spring renaissance courtesy of the federal tax rebates," says a new Credit Suisse report. "But we think the surge is unlikely to last past the summer."
The IRS also is planning special efforts this summer to reach millions of retirees and disabled veterans who qualify for a stimulus payment but who wouldn't otherwise have to file tax returns. Here's an update on the stimulus payments, where the glitches are and where to get help.
Payment schedule. If your return was processed by the IRS by April 15, you were supposed to get your stimulus payment based on dates determined by the last two digits of your Social Security number and whether you use the direct-deposit payment system.
Here's the schedule for the next three weeks, according to the IRS Web site: If the last two digits of your Social Security number are 64 to 75, your check should be in the mail by June 27. If your last two digits are 76 through 87, your check should be sent by July 4. And if the last two digits are 88 through 99, the check should be in the mail by July 11.
This seemingly precise schedule has led to questions. Some people assumed that if they had filed their returns by the April 15 deadline, they would get their checks based on the Treasury schedule. Not so. The key issue is whether your return was processed by April 15, not whether it was filed by then.
Rep. Pat Tiberi (R., Ohio) says he has heard from more than 50 constituents who filed around April 15 and want to know why their checks haven't arrived. Among those who had expected to get a check sooner was his father. At last week's hearing, Rep. Tiberi said his father was "pretty frustrated" by the experience. But this week, he learned that his payment will be sent early next month.
If you got a six-month extension, haven't yet filed and want your payment in a hurry, here's a suggestion: File your return electronically. Your return will be processed more quickly and your payment will arrive sooner.
Glitches. If you already got your stimulus payment and it didn't include money to reflect your kids, you have company. The IRS says it will mail out about 230,000 additional payments around mid-July after discovering some tax returns were "improperly filed and did not capture the information needed to generate the $300 in qualifying child payments."
In some cases, parents didn't check the right box to get the $300 child payment. In other cases, "a few tax software products primarily used by tax professionals did not capture the proper information needed for issuing the child stimulus payment."
To fix the problem, the IRS is "taking extra steps to identify the affected taxpayers and send them separate checks to cover their qualifying children." You don't need to call the IRS or take any additional steps. These payments will be made by paper check, even if you received your regular tax refund or initial stimulus payment by direct deposit.
Separately, the IRS in early May found a problem with 1,500 stimulus checks that were directly deposited into the wrong accounts, Mr. Shulman said. That was the result of a "programming error" that occurred during the initial computer payment run. "We immediately corrected this problem, and no additional erroneous deposits have been made." All taxpayers affected have since been sent a check.
Getting help. The IRS Web site (
http://www.irs.gov/) has extensive information, including a list of answers to frequently asked questions. If the IRS made a mistake in computing the amount of your refund, consider contacting the IRS's Taxpayer Advocate Service. This unit can be especially helpful for people facing financial distress. For details, go to the IRS Web site and click on "Taxpayer Advocate" on the home page, or call 877-777-4778
