Many people have been checking their bank accounts expecting to see their economic stimulus payments only to be disappointed and calling the IRS to find out where it is. The answer was a surprise to many although it makes sense.
If you filed your taxes through Turbo Tax and you paid for your software and efiling with your tax return, you will be getting a paper check. The reason for this is that the IRS actually sent your refund to a bank who deducted the fees and then the bank direct deposited the money into your account.
This will also affect anyone who got a refund anticipation loan or filed through HR Block or other tax softwares that allow you to pay for your fees with your refund. You can check your bank statements to see if your refund was received from the Treasury Department. You can also check at the IRS website at Where’s My Stimulus Payment although it will only track your payment if it has been sent.
I paid for my software and efiling with my refund and I was a bit disappointed as my ssn ends with 98 which means I will not get my payment now until mid July. It’s a good thing I didn’t have plans for it other than adding to my emergency fund.
The paper check schedule is
PAPER CHECK
| Last two SSN digits: | Payments will be mailed no later than: |
| 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 |
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Thank you for posting this– it helped solve a mystery for my mom who I called as soon as I read this. One less person who has to call the IRS today
Jennifer, It was my mom who had me look into it. They should have gotten their direct deposit last week. By the way, there is still nothing that I could find posted on the IRS website that states this. Go figure.
Eee! That’s good to know. We ended up paying Turbo Tax fees with a debit card, so I guess we’re in the clear. Expecting our check later this week (hopefully!)
Just to be clear. When you use Turbo Tax you have two options for processing your refund.
#1: You can have the processing amount deducted from your refund. With this option you HAVE to go through another bank for clearing purposes. In this instance you would be getting a paper check (as described above).
#2: If you pay for the processing fee yourself (credit/debit card) your refund is deposited to your account directly from the IRS (Dept of Treasury). In that case your refund will be electronically deposited (not paper check).
The above article is very helpful!!!
What if you used the free edition turbo tax??8x
Steveo, I would check your bank statement and see if the deposit was from the Treasury Department or if it was from something like RAL DEPT. If it came direct from the Treasury, then you should get your stimulus payment direct deposited. If it came from another source then you can expect a check.
Ram, Thanks for clarifying that point! You are absolutely correct.
yup says the deposit is from –> “US TREASURY 220 TAX REFUND” thanks for the info cindys
How did you verify this information? I belong to a listserv 1400 strong and tis doesnt apply to quite a few of the ladies there. Have you confirmed that this is the case from the IRS? Where else is this information posted?
Ginger,
It is posted on the IRS website under the Stimulus FAQs http://www.irs.gov/newsroom/ar.....97,00.html
Q. I chose direct deposit for my 2007 tax refund but also requested a refund anticipation loan (RAL) from my preparer. How does that affect my stimulus payment?
A. Taxpayers who use RALs or enter into any other loan or financial agreement with their tax professional cannot receive their stimulus payments by direct deposit and instead will get a paper check.
I used to work for Intuit and supported their efile program. Whether you got a “rapid refund” or paid for your software with your tax refund, the deposit will come from the bank. When I worked there it was Santa Barbara but that may have changed, they worked with several. This is where it falls under “loan or financial agreement”.
You can call the IRS at 1-800-829-1040 if you want to clarify it further.
To all… It’s unfortunate that those who used a third party for refund/payment processing of their 2007 tax return will be receiving their REBATE by check. However, this is a decision the IRS made (and for valid reasons… see below). It applies to all taxpayers regardless of which tax software, online service, or tax franchise you went to. If the return’s refund or the payment of fees were handled by a third party, that means your REBATE will be by check.
Had the tax software companies and tax franchises known how the IRS would be processing the rebate checks back in tax season, I’m sure we all would have handled this differently. Remember, the rebate legislation wasn’t passed until mid-February and the details on how the IRS would be processing them didn’t come for many more weeks after that.
If there is any consolation for those in this unfortunate situation, it is that the IRS is about a week ahead of their original schedule.
For more information on REBATES and TurboTax, please visit http://turbotax.intuit.com/sup...../5961.html.
As to why the IRS decided to send rebate checks to these taxpayers who used third parties, here is why. When you make the election to have your fees deducted from your refund, the bank sets up a temporary account used only to receive your 2007 refund from the IRS. The IRS sends the 2007 income tax refunds to the temporary account and the bank then transmits the net amount (after deducting any fees) directly to the your actual bank account. Because the IRS does not receive taxpayer bank account numbers under this method, it cannot match taxpayers with their current bank accounts. That’s why the IRS decided that taxpayers who entered into financial transactions with third parties will get rebates by mail. This also applies to taxpayers who used “refund anticipation loans” or RALs (loans made to tax filers against their expected refunds). TurboTax does not offer RALs.
Thanks to all for providing this valuable information to everyone.
Bob Meighan
VP, TurboTax
Bob, Thank you for your comment and your explanation of the reasons behind it. I worked for Intuit in the ProTax division and frankly, I don’t see what you could have done differently. I suppose that if you had known about the rebate, you could have notified people in advance or perhaps worked with the banks and IRS to resolve it. I appreciate the clarification from your end and I still think that Turbo Tax is the best tax software solution going.
Too bad I didn’t have reportable income last year. I ain’t getting diddly, but if I was, my SSN ends in 31.
However, I discovered recently when I organized my important documents that somehow, mysteriously, I had overlooked filing for the 2004 tax year. So I still get a miniature windfall to the tune of over $200.
It’d be even nicer, though, if the government would quit underfunding and slashing important services and then tossing us a doggie biscuit and going, “Here, take this money and go blow it.” That isn’t really what we need.
Why is the letter I got in the mail saying to receive on may 30th, but didnt come. I didnt do any of the afore mentioned things that should slow it down. The Government sure did spend alot on postage, to send an inaccurate letter.