Eager for your tax rebate? Make sure you get it without delay
-- The eight West Virginia women who won $276 million in the Powerball lottery last week are probably too busy dodging phone calls from long-lost relatives to worry much about when their tax rebate checks will arrive. Not to mention that they really don't need the money.
But millions of Americans who didn't win the Powerball jackpot are eager to receive their checks. Under the economic stimulus plan approved this year, most Americans will receive payments of at least $300 to $600. That's not exactly a windfall, but if you're having trouble paying the bills, it certainly helps.
The IRS announced last week that it will start distributing the money on May 2, based on the last two digits of your Social Security number. For married couples, the schedule will be based on the Social Security number of the spouse whose name appears first on the return.
Though you can't change your Social Security number, there are other steps you can take to speed your rebate, even if your last two digits fall at the high end of the range. They include:
•Be sure to file your tax return by April 15. This year, as in the past, procrastinators can request an extension to file their tax returns until Oct. 15. But the IRS won't send you a rebate until it receives your 2007 tax return. If you file for an extension, you'll move to the end of the line.
•File electronically. E-filed returns are handled more quickly by the IRS. They're also less likely to contain errors that could delay the processing of your return.
•Arrange for direct deposit of your tax refund. The IRS will use the information on your tax return to deposit your rebate in the same account.
Taxpayers who use direct deposit will receive their rebates May 2 through May 16, while taxpayers who receive paper checks will receive them May 16 through July 11, depending on their Social Security numbers.
You can arrange for direct deposit of your rebate even if you're not expecting a refund, the IRS says. Fill out the bank routing information on your return, and the IRS will deposit your rebate in that account.
Of course, that strategy works only if you haven't yet filed your tax return. If you've already filed and didn't arrange for direct deposit of your refund, you'll receive your tax rebate in the mail.
•Don't use the split-refund option. The split-refund option, introduced last year, lets taxpayers deposit their refund in up to three accounts, including an individual retirement account. It's designed to encourage Americans to save at least a portion of their refunds, which is a laudable goal. But if you want your rebate fast, don't use the option this year, says Mel Schwarz, partner at Grant Thornton's national tax office.
The IRS won't know which account to use for your rebate, so it will just mail you your check.
•Make sure the IRS knows where you are. If you move, use Form 8822 to update your address with the IRS.
That's particularly important if you expect to receive your rebate by mail, because the postal service won't forward a rebate check to your new address. Instead, it will return the check to the IRS.
Rules for seniors and veterans
As part of the economic stimulus package, retirees, veterans and many low-income workers will be eligible for a rebate even if they owe no federal income taxes. Americans who received at least $3,000 in 2007 from Social Security, veterans' benefits, earned income or some combination are eligible for a rebate of $300, or $600 for married couples.
But to get your rebate, you must fill out part of Form 1040A — a shorter version of Form 1040 — even if you don't owe any federal taxes. The IRS recently mailed a 10-page package to more than 20 million people who receive Social Security and veterans' benefits; the package includes the form and tips on how to fill it out. If you didn't get a package, you can find the information and download the form at www.irs.gov.
The IRS will also open more than 300 offices on Saturday to help people fill out the simplified tax return. The Super Saturday program is limited to individuals who are filing a tax return solely to get a tax rebate. You can find a list of participating IRS offices at www.irs.gov or by calling 800-906-9887.
Retirees and veterans can e-file the form for free through the IRS Free File program. Five of the participating tax-software providers offer free e-filing for individuals who are filing the stripped-down version of 1040A.
To find the list, go to the Free File link at www.irs.gov.
Sandra Block covers personal finance for USA TODAY. Her Your Money column appears Tuesdays. Click here for an index of Your Money columns. E-mail her at: sblock@usatoday.com.