The Internal Revenue Service announced last week 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.

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.

“To receive an economic stimulus payment, people just need to file their tax returns as they usually do,” IRS Acting Commissioner Linda Stiff said. “The payments will be automatic for the vast majority of taxpayers. Some lower-income workers and recipients of certain Social Security and veterans benefits who don’t normally need to file a tax return will need to do so in order to receive a stimulus payment.”

For taxpayers who normally file an income tax return, the maximum stimulus payment is $600 ($1,200 for married couples) with an additional payment of $300 for each qualifying child. Starting with adjusted gross income of $75,000 ($150,000 for married couples), stimulus payment amounts are reduced. For taxpayers who file a 2007 income tax return, the amount of the economic stimulus payment will be calculated automatically by the IRS.

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.

Even if people typically do not file taxes they may still be eligible for a rebate check. Under the Economic Stimulus Act of 2008, people may be eligible for the minimum payment of $300 ($600 for married couples) even if they do not normally file a tax return. However, people must file an income tax return or use Free File – Economic Stimulus Payment, which is available at IRS.gov, to receive the payment.

The IRS is in the process of mailing special information packages to approximately 250,000 Minnesota recipients of Social Security or Veterans Affairs benefits to help them get their 2008 economic stimulus payment.

“Some seniors and others haven’t needed to file a tax return for years. To help them get a stimulus payment, we’re doing everything we can to make this process simple and quick,” said Carrie Resch, IRS spokeswoman. “These packages mean most people will just need a pen and a stamp, and the IRS will do the rest.”

The economic stimulus payment is not taxable, and it won’t reduce people’s 2007 or 2008 refund or increase the amount they owe when they file their 2008 return.

The only official IRS Web site is located at www.irs.gov [2].