Comments on: You May Not Get Your Stimulus Bonus When You Think

By: michelle

michelle — Fri, 30 May 2008 18:28:51 +0000

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.

By: Dana

Dana — Wed, 07 May 2008 19:27:51 +0000

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.

By: cindys

cindys — Tue, 06 May 2008 16:15:58 +0000

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.

By: Bob Meighan

Bob Meighan — Tue, 06 May 2008 15:24:48 +0000

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

By: cindys

cindys — Tue, 06 May 2008 02:54:24 +0000

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.

By: Ginger@Girls Just Wanna Have Funds

Ginger@Girls Just Wanna Have Funds — Tue, 06 May 2008 02:33:42 +0000

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?

By: steveo

steveo — Tue, 06 May 2008 01:12:13 +0000

yup says the deposit is from –> “US TREASURY 220 TAX REFUND” thanks for the info cindys

By: cindys

cindys — Tue, 06 May 2008 01:07:53 +0000

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.

By: steveo

steveo — Tue, 06 May 2008 01:03:36 +0000

What if you used the free edition turbo tax??8x

By: RAM

RAM — Mon, 05 May 2008 18:47:40 +0000

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!!!