Stimulus Check Woes

Have you receive your stimulus check? If you’re like many Americans, the answer is “Yes, but…” “ The “but” being an error ranging from an incorrect amount or in some extreme cases a receiving a duplicate check.

Since April the IRS began sending the much anticipated stimulus checks. The plan, an effort by the Bush administration to encourage consumer spending and jump-start the sagging economy, has not been without its problems. The distribution of checks has, for the most part, been a seamless operation. However, with any program of this size, some errors have occurred. The vast majority being the amount sent. The rebate total was based on returns filed for the 2007 tax year. In a nutshell, the amounts sent were, $600 for single filers, $1200 for married couples and an additional $300 for each eligible child under age 17.

So what happened? Some married couples did not receive the additional amounts for each child. According to the IRS the problem occurred due to improperly filed returns or home tax preparation software which did not catch the proper information needed to generate a credit for each qualifying child.

Some people discovered an additional direct deposit in their bank account. The additional payment intended for another person. Although the problem was not widespread, the IRS estimated only about 1,500 people were affected and are working to resolve the problem. In some rare cases, a computer programming error sent individuals in California and Puerto Rico a duplicate stimulus check. According to the IRS Commissioner, Doug Shulman, an operation of this size and complexity “ has not been without hiccups.”

The IRS continues to send payments through mid-July, but if you’re one of the thousands of people who received an amount that did not include a credit for your children, no action is needed on your part. The IRS assures taxpayers a new wave of checks will be sent to affected taxpayers starting later in July. If you received an erroneous additional deposit or duplicate payment, the IRS advises you to contact your bank to report the error immediately. If you receive an extra paper check mark it “void” in the endorsement section on the back and send it back to the IRS with a note stating “Erroneous Stimulus Payment Check”. Failure to do will result in repayment of the amount to IRS, possibly with interest.

If you still have not received your stimulus check the IRS advises people to be patient. The last distribution of paper checks is on schedule and should arrive sometime in late July. If you still have questions, visit the IRS website and click on the section marked “Rebate Payment Questions?”