Stimulus snafus
Posted on May 20th, 2008 – 6:16 PMBy Kara McGuire
You didn’t expect this hastily approved stimulus rebate deal to go off without a single hitch, did you?
And now the stories are coming in about rebates being sent via mail instead of direct deposit, rebates being deposited into IRA accounts designed for retirement, and rebates ending up in the wrong taxpayer’s bank account.
Anyone have such a story to share?
The IRS has a list of frequently asked questions about the rebate. And they’ve made an exception for taxpayers who had directed their tax rebate into an IRA and either don’t want their stimulus to go towards retirement or can’t have their stimulus payment applied to the IRA because it would bump them over the maximum IRA limit. Read more here.
I’m still expecting mine to come in July. And in a way, it’s a good thing to have to wait because it gives me time to mull over all of my options– from the flat screen to the plane tickets to a GPS for the car. Maybe by the time the check’s in my hot little hands, the urge to splurge will be long gone and I’ll stick it in my just in case account or new car account where it belongs.
6 Responses to "Stimulus snafus"
Well, I WAS complaining about my situation, but now that I hear about other people’s problems, it seems minor. I filed my taxes on paper, via snail mail (not e-file) BUT I had my return direct-deposited. So I figured my stimulus check would be direct-deposited. Wrong! I got the check in the mail this week. So now I’m just mildly annoyed that the message wasn’t clear - they should have said “If you E-FILED, you’ll get direct deposit”…I’m thinking THAT’S probably what they REALLY meant.
I’ll live. Now, what to do with the money…
Really? We filed ours snail mail and our rebate was direct deposited.
One of my co-workers said that hers didn’t end up being the full $600 … she got like $460-something. Has anyone else heard of that happening?
If you make more than the alloted amount or make too little so you don’t pay a lot of taxes, the amount you get is less. Did she use the calculator to see how much she was supposed to get?
Answers:
If you used Turbo Tax and had the fees taken out of your refund or received a Refund Anticipation Loan from H&R you’ll get a paper check because the IRS doesn’t have your bank info, they have TT or H&Rs.
If it was deposited into an IRA you can withdraw it with no penalty or tax consequences.
If you didn’t have at least $600 of tax liability for 2007 you will get a reduced amount. Earn more money next year and have a larger tax liability and you’ll get the remainder after filing your 2008 tax return.
I filed mine via snail mail and had my refund direct deposited. I got my direct deposit stimulus on the day the feds said I would get it. it was great!
well, looks like I’m the only one (here, anyway) who filed snail-mail, chose direct deposit for my refund, but still got a paper check. Crazy! (I didn’t do Turbo Tax or H&R block - and I typed in MY bank’s routing numbers).
Perhaps it was because I split my refund between two accounts (one traditional and one ING) and they feared that one of them was an IRA account? Or they just couldn’t choose, like Homer at the donut counter?
Who knows. But let me again emphasize - no big deal for me. I got my check and it’s in the bank now; I can’t really complain compared to someone who doesn’t get one at all or has it stolen!
