May will bring economic stimulus checks to first recipients

In elementary school, it was alphabetical order. In gym class, it was tallest to short. This year, the Internal Revenue Service has a whole new twist on who gets their goods first - the last two digits of your Social Security number.

Most taxpayers who file with the Internal Revenue Service will be receiving fat refunds this year, about $600 per individuals, in addition to their normal tax refunds.

The extra cash is meant as a shot in the arm to an ailing economy.

The lucky taxpayers with 00-20 as the last two digits of their Social Security number will start getting their checks directly deposited into their bank accounts on Friday, May 2, just in time to stock up for a killer weekend Cinco de Mayo celebration or to celebrate Bing Crosby's 104th birthday.

Those that fall into the 21-75 category will get their refunds on May 9 and the quarter of individuals with 76-99 will get their deposits on May 16. Only those that used direct deposit on their 2007 returns will get their checks at the earlier dates. For those that didn't use direct deposit, the checks should be in the mail two weeks after the direct deposit day for their refunds.

The refunds start at $600 for individuals and $1,200 per family $300 for every child. The IRS has created a refuned calculator (see link below) to determine exactly how much each taxpayer will get back.

Joint-filers will receive their checks according to the first Social Security number listed on the return,

"Social Security numbers are the most efficient way for the government to send out payments," said Lea Crusberg, a spokeswoman with the Internal Revenue Service.

The payment schedule only applies to those that pay their taxes before the April 15 deadline. The IRS will still mail out refunds to those that pay their taxes late, but only if taxes are submitted before Oct. 15.

Only those that submitted taxes for 2007 will receive the economic stimulus payments.

President Bush announced the refunds in January as a way to fight a struggling economy. Congress passed the refunds a month later. Government officials hope the refunds will help the economy by spurring retail spending, which in turn will increase manufacturing and service sector spending.
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Kyle Arnold covers business, the economy and general assignments for The Monitor. You can reach him at (956) 683-4410.