IRS has announced that it will begin sending more than 130 million economic stimulus payments starting May 2. The initial round of weekly payments will be completed by early July. IRS also announced the availability of a new online calculator on its web site to help people determine the amount of their stimulus payments. Stimulus payments will be made by direct deposit to people who choose to receive their 2007 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check.

Mailing schedule. Stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return. On a jointly filed return, the first Social Security number listed will determine the mail-out time. Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by Apr. 15, 2008. For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by Apr. 15, paper checks will be in the mail starting May 16. They will be sent in batches over a nine-week period with the initial mailings completed by around July 11.

To accommodate people whose tax returns are processed after Apr. 15, IRS will continue sending weekly payments. People who file tax returns after Apr. 15 and receive a refund can expect to receive their economic stimulus payments about two weeks after receiving their tax refunds, but not before the date they would have received their payment if the return had been processed by Apr. 15. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.

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