Business and economics |

An overwhelming majority of Americans believe that the so-called economic stimulus plan - largely consisting of tax rebates - will not boost the economy. According to a poll conducted by CNN/Opinion Research Corp., a whopping 82% of Americans believe the stimulus package won’t work. This is up sharply from 70% of Americans who said the same thing in February.

The Treasury claims to have sent out nearly 30 million payments totaling $27.2 billion so far - though it’s clear from the comments that most of my readers haven’t seen their checks so far. And the White House believes that those payments will make a difference in the long run.

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The IRS has updated its website to address questions about rebates. Mostly, it’s the same old story - no real news on why payments may not be on time. But there are some concrete answers about Refund Anticipation Loans (RALs), Refund Anticipated Checks (RACs) and tax preparer issued debit cards.

I’ve posted about Refund Anticipation Loans (RALs) and rebates before - be sure and check out this prior post.

With respect to Refund Anticipated Checks (RACs), including those from tax preparers and tax software, the IRS has clarified that funds deposited into your bank account as a result of these agreements are from the financial institution associated with your software provider or tax preparation provider, and not directly from the IRS. Therefore, taxpayers who use RALs, RACs or similar loans will not receive their rebates by direct deposit and will instead receive a paper check.

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Taxpayer asks:
Heeello! I was wondering if it is true that my stimulus payment could be taken for outstanding hospital bills I have yet to pay? If so, “How will that help boost the economy?”

Thanks for your time…

Taxgirl says:
The short answer is no. Rebates are being withheld or reduced for federal obligations such as past due student loans, back taxes or child support payments.

However, if you owe money to the government as a result of your care, that would change my answer.

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Taxpayer asks:

We thought we’d get an early start on taxes this year, but it didn’t happen. My husband and I used Turbo Tax to do our taxes (we also have two young children) and at first, it said that we owed $1200 or something like that. So, we waited until last minute to redo the taxes and now we’re getting $300 back. Is the stimulus economic refund check the reason we’re now getting a refund back? Not sure if this stiumulus refund check can affect us for this tax season already? Pls advise.

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Taxpayer asks:
Hello,

I have a daughter born 3/3/06. There has been a delay in her birth cert. due to name change which also means I have not been able to acquire a ss# for her.

I am going to do an amendment for the past 2 tax years once I receive the proper documents (birth cert, then ss#). My question is am I able to still receive the $300 on the extra rebate for her? If so what is my time frame?

Thank you,

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Taxpayer asks:

I have a problem. I let my son’s father claim us on his taxes and he died on 3/29/08. What do I do to get the rebate back on, at least on my son and myself? Not to sound morbid! But what can I do?

Taxgirl says:

If the return for 2007 was already filed, the rebate will still be processed despite the death (if the return was not filed, it can be filed post-mortem by the decedent’s personal representative). The rebate will be issued in the decedent’s name and become part of his estate.

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Taxpayer asks:
Just curious, are the foreign taxpayers who are not American citizens also going to get the stimulus rebate checks? I’ve heard people from all over the world have been filing tax forms for the stimulus payment. (And apparently, these are non-American citizens who have social security numbers).

Taxgirl says:

Permanent residents overseas who are American citizens (and otherwise qualify) will receive a rebate. You can see my prior answer to this question here.

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