When should I expect my Stimulus payment?
The payment schedule depends on three factors:

• Whether the payment is being made via direct deposit or by check
• When you filed your tax return
• The last two digits of the first Social Security number on the return

If you filed your return by April 15, you will most likely receive your money according to the schedules below; however, these dates are not guaranteed.

Direct deposit schedule

Last two SSN digits	Payment date
00 through 20 21 through 75 76 through 99	May 2 May 9 May 16

Paper check schedule

Last two SSN digits	Payment date
00 through 09 10 through 18 19 through 25 26 through 38 39 through 51 52 through 63 64 through 75 76 through 87 88 through 99	May 16 May 23 May 30 June 6 June 13 June 20 June 27 July 4 July 11

(Source: www.irs.gov)

If you extended your return, your payment will be delayed. The IRS expects to pay most people by July and no rebates will be issued after December 31, 2008.

Spending the extra money
Americans have differing opinions on how they’ll spend their money. In an interview with the Minneapolis-St. Paul TV station, KARE 11, Virginia Harn, tax principal with LarsonAllen, cautioned people to look at their personal financial needs before spending the cash. “Make sure you’re covering those, especially if you’re struggling with anything like a mortgage, gasoline, and groceries,” she said.

Rebate amounts and eligibility
Payment amounts depend on the following:

• Single taxpayers will receive a check for the amount of income tax paid in 2007 or $600, whichever is less.
• Married couples will receive a check for the amount of income tax paid in 2007 or $1,200, whichever is less.
• Taxpayers with a child under the age of 17 (claimed as a dependent) will receive an additional $300 per qualifying child.
• For lower income qualifying taxpayers, the minimum rebate amount is $300 per taxpayer, or $600 for joint returns.

All qualified taxpayers must submit a 2007 return to receive their rebate (even those not otherwise required to file).

Reduced or no rebate based on AGI
The Stimulus payment is phased out for taxpayers whose adjusted gross income (AGI) exceeds $75,000 for individuals and $150,000 for joint returns.

Taxpayers with no children whose AGI is more than the following amounts will not receive a rebate:

• $87,000 (single)
• $174,000 (married)

Taxpayers with children have higher AGI limits before losing the rebate due to phase out.

Credit in 2008 compared to rebate in 2007
The Stimulus payment amount will ultimately be based on results from the 2008 Form 1040. Accordingly, the advance rebate paid to taxpayers in 2007 will need to be reconciled to the amount computed when preparing the 2008 Form 1040.

If the advance rebate paid in 2007 exceeds the computation based on the 2008 return, no repayment of the excess is required.

If, however, the advance rebate is less than the computation based on the 2008 return (e.g. if 2008 AGI is lower and the phase out is diminished), the taxpayer can claim the difference as a credit against the 2008 tax liability.

Business incentives
The stimulus package also includes one-year depreciation incentives for businesses.

For more information, contact us or review the frequently asked questions on the IRS Web site.