Stimulus payments directly deposited today

Monday April 28, 6:07 pm ET
By Anne D'Innocenzio, AP Business Writer
As first tax rebates show up in checking accounts, many Americans eye groceries, not fancy TVs


NEW YORK (AP) -- Tax rebates have begun dropping into bank accounts, but in this economy, gas and groceries may trump a high-end TV, a fancy dress or a new sofa -- making the checks less of an economic jump-start than the government hoped for.
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The first direct deposits from the Internal Revenue Service landed in bank accounts Monday, shoppers were already using the cash to play catch-up on the basics, such as milk and other groceries.

Analysts say the rest will probably be used to pay down debt.

Alicia Flaxman, a stay-at-home mother from Seekonk, Mass., was shopping at a Target store Monday and said she would use some of the rebate for food -- cheaper items like potatoes, not more expensive meat and fish.

"My bills are double," she said. "I go to the supermarket and I spend $200. I used to spend $120."

The rest of the money will probably go for summer clothes for her three children, she said.

The IRS aims to make 800,000 payments every day for the first three days of this week. No deposits will be made Thursday, and about 5 million on Friday.

How you receive the rebate depends on how you filed your taxes. Paper checks will go out beginning May 9. The exact timing for both direct deposit and paper checks depends on the last two digits of your Social Security number.

The rebates, which are expected to reach 130 million households, range up to $600 for individuals and $1,200 for married couples, plus $300 per child for eligible parents.

Eric Mossack of Spring Hill, Tenn., had his $1,200 rebate in his checking account Monday and spent some of it on clothing from Gap, Kohl's and other stores -- his first shopping spree in a few months, he said. The rest will go to car payments.

"We paid off something we owed, and had a little extra to spend," said Mossack.

But Bethany Blankley of Manhattan, who works in public relations, said she would immediately put the $600 she received Monday toward paying off credit cards. "The interest rates are high," she said.

That kind of frugality doesn't surprise analysts, who say shoppers are earmarking more of their money for groceries, the utility bill or credit card payments. Besides grocery chains, they expect discount retailers like Wal-Mart Stores Inc. and off-price clothing outlets like T.J. Maxx to benefit from the stimulus checks.

"Consumers are so feeling the pinch that ... they are really being forced to step away from luxury or discretionary purchases," said Janet Hoffman, managing partner of the North American retail division of Accenture.

But department stores and consumer electronics stores are unlikely to see a "measurable lift," Hoffman added. "The amounts are not that significant."

By comparison, previous government stimulus plans led to a lift across the entire retail industry, said Stacy Janiak, vice chairman and U.S. retail leader at Deloitte & Touche.

The rebates go out as the IRS finishes sending out its regular annual tax refund checks.

In an Associated Press-AOL Money & Finance poll earlier this month, 35 percent said they would use their regular tax refunds for bills and credit card payments. That was up from 27 percent who said that a year ago.

With consumer spending screeching to a halt in recent months, the retail industry needs shoppers to splurge. That's a big challenge. Gas could reach $4 a gallon this summer, and a gallon of milk is now about $4 on average as well.

"People who were eating steaks last year are now eating hamburger meat and pasta this year," said Burt P. Flickinger III, managing director of the consumer industry consulting firm Strategic Resource Group. "People are going to be able to put good food on the table, but in a few weeks they will go back to hamburger meat and macaroni."

Retailers have already tried to grab a share of the billions of dollars flowing to households. Sears Holdings Corp. is offering discounts and freebies to shoppers who convert rebate checks into gift cards. Home Depot Inc. launched a campaign urging people to spend on eco-friendly products like energy-saving light bulbs..

Kroger Co. has already announced that shoppers can convert $300 rebate checks into a $330 Kroger gift card.

"I'd estimate that we had about 100 people indicate they were ready to get the cards as soon as they could," Brad Casebolt, the manager of a Kroger said in Sharonville, Ohio, said Monday. "The interest in it really has been overwhelming."

Joyce Gundling, who was loading groceries at another suburban Cincinnati grocery, said she would take advantage.

"The way groceries are skyrocketing, I'll probably end up spending it here anyway," she said. "This way, I get more for my money."

Associated Press Writers Martin Crutsinger in Washington, Lisa Cornwell in Cincinnati and Michelle Smith in Seekonk, Mass. contributed to this report.

Can someone please point me in the direction of the newest schedule table for the tax rebates? The gov website still has the same "early May" information. I wanted to see what the newest social security table is for direct deposit payments.

I did not get my in the bank today. I wonder if that means I am not getting a rebate check. :cry:

I will just have to look tomorrow and hope for the best. I could really use it.

Amaranth- Its still the same schedule the only thing that changed is the date is BY that date instead of ON that date. As I posted above they began today...example I am 00 (last 2 of my SSN) and I did not get mine today, however I will have it BY friday. So theres a good chance I will get it tomorrow or Wednesday since Im 00.

spatterson_40- What is that 2 of your SSN?? How did you file your 07 taxes? Direct Deposit or Mail? Did you file before April 15th?

We didn't get ours either, but I am not worried. I am sure it will be there sometime this week and yes, we are one of the ones that will be using it to catch up and maybe buy gutters for our house.

My SSN ends in 03 and I had it direct deposited back in Feb. But from what I see there are other people that have not gotten it yet. Hopefully sometime this week.

Quote:

I had high hopes of using my total rebate for a nice vacation for myself and my kids later this summer, but it looks like now it will be going to pay off the huge winter gas bill (surprise! $400 a month for 2 months!) and to get groceries and pay bills.

We will still take our vacation, but I will be finding another way to pay for it. Back to selling on Ebay, I guess. :(

It sounds like everyone including myself is going to be using their stimulus payment to payoff bills from the winter months and buy gas :twisted:

The first page of ir(mess).gov states:

"Economic Stimulus Payments Start Direct deposit payments start April 28. When will you get your payment? Find out here."

but when you click through it states:

"Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008:

Direct Deposit Payments

SS# ending in /Direct Deposit by
00 ???????? 20 May 2

21 ???????? 75 May 9

76 ???????? 99 May 16

Paper Check


SS# ending in /Check in Mail by
00 ???????? 09 May 16

10 ???????? 18 May 23

19 ???????? 25 May 30

26 ???????? 38 June 6

39 ???????? 51 June 13

52 ???????? 63 June 20

64 ???????? 75 June 27

76 ???????? 87 July 4

88 ???????? 99 July 11

Well isn't that a bunch of bollocks for getting everyone's hopes up... that's our government for ya... A bunch of procrastinating liars :x

I think they are saying by that date you will receive it . . . . But you could get it earlier . . . .

See, I heard something completely different - I saw where basically all the direct deposits would be out between this week and next - so if you were expecting it next Friday (the 9th), you'd see it by this Friday instead.

I hope that is the case! My last 2 are 78, so I'm in the last batch . . . . I'd love to have mine earlier . . . .

I know I did read somewhere that only 500,000 were going out each day for the first couple days, and then way more on Friday . . . .

One thing to note - The schedule is only for people that had their returns processed before April 15th . . . . It can take up to a month to process returns, so if you mailed in your return close to April 15th, you may not get your payment according to the schedule.

Also, and this is just gossip - I read that the early payments are only for those that filed very early and used 1040ez and had no dependants - All other people will get paid according to the schedule. But I don't know how true that is or not - Just read it looking around on the web . . .

MSN Money is reporting the following schedule:

Rebate delivery schedule
Direct-deposit payment All sent by May 2
Paper check
If the last two digits of your Social Security number are: Your tax rebate check should be in the mail by:
00-09 May 16
10-18 May 23
19-25 May 30
26-38 June 6
39-51 June 13
52-63 June 20
64-75 June 27
76-87 July 4
88-99 July 11

But this contradicts the info posted on the IRS website.

Your probably right goudah, I filed a 1040a just to get the stiumulus payment and I checked the website fileyourtaxes.com and it says mine was accepted on 3-17-08 so I am sure I will get it on 5-2-08 (hopefully) directly deposited into my account. Sure could use it..just got my electric bill today after they shut it off :twisted:

Has anyone who did direct deposit recieve their stiumulus check yet? Both my boyfriend and I did direct deposit and still have not recieve it. It would be really cool if it would come soon?

I talked to my credit union when I was there today and they said they had a few, but I don't know if that was the regular tax returns or the stiumuls payments. All I know is I am anxious to get mine, it's already spent on electricity of $711.00. :twisted:

Well heres my situation....Filed 1040ez early Feb. received my refund the 3rd week of Feb direct deposited. My last 2 of my ssn is 00. I have no dependants and am single. I still have not received my rebate.

But heres the kicker...the account the IRS has on file is my old account that I closed due to the PDLs..BUT my bank put a note on the old account to forward the rebate to my new account. Im hoping that works and I get it friday.

Oh and I work for the bank and since monday we have been bombarded with people calling to see if they had theirs and I only know of one that got it and it was wednesday and their last 2 was 04. That pissed me off a lil bit lol

Mine showed up in my account today!! So Im thinking it went to my old account yesterday and it took a day to move it to my new account.

Yea...we got ours today!!! going to get some gutters for the house and some gravel for the drive and the rest goes to bills. Might sneak a dinner out in there also. Think we deserve that.

cool 2nband,how about ladybug.get yours yet my friend?

Hoping my son gets one, although his will come in the form of a check. If I read things correctly, he may. He turned 18 last June and made around $6,000. My ex had been able to claim him on his taxes (long story there), but Kyle wrote him and told him he made enough to claim himself and for Scott not to claim him. Don't know whether or not Scott did, but hoping not so Kyle can get a some of this. Guess we will have to wait and see. It will really piss me off if Scott gets Kyle's money when the SOB doesn't do a damn thing for his kids. He gripes about what little child support he had to pay (no increase for me in like 13 years!!!) and has not contact with them or anything...just pays the little bit of money and that is it.

What im trying to figure out is ok....if ppls ssn numbers that are 00-20 are to be deposited in the bank by may 02 then are the irs gonna start depositing for the 21-75 bracket on may 3rd? mine last are 32. i really need it i wish they would at least post a notice on there site updating there progress. i swear our government treats us like mushrooms...we are fed a load of sh*t and kept in the dark... :lol:

I agree Ronnie.

If you haven't checked the IRS site lately, check again. It's been updated with more payment info for the 21-75 bracket.

I see no updates?

when will my stimulus arrive?

No one here can answer that question for you. Contact the IRS.