The IRS announced today that it will begin sending more than 130 million economic stimulus payments beginning May 2nd. The initial round of weekly payments will be completed in early July.

The IRS has also announced the availability of a new online calculator on their Web site, IRS.gov, to assist people in determining the amount of their forthcoming stimulus payments.

The stimulus payments will be made by direct deposit to people who choose to receive their 2007 income tax refunds via direct deposit. Everyone else will receive their economic stimulus payments in the form of a paper check.

Acting Commissioner Linda E. Stiff said "To receive an economic stimulus payment, people just need to file their tax returns as they usually do and the payments will be automatic for the vast majority of taxpayers.”

There is a faction of the American public who will need to take certain steps in order to receive an economic stimulus payment. This group includes some lower-income workers and recipients of certain Social Security & veterans benefits who don't normally need to file a tax return will need to do so in order to receive a stimulus payment.

The IRS Web site – IRS.gov - has all the information people need to help them obtain a stimulus payment. For individuals who don’t have access to a computer at home, should visit their local library or community center.

Stimulus payments will be sent out in the order of the last two digits of the Social Security number you use on your tax return. Since the IRS will use the Social Security number to determine when checks are mailed, you may receive your checks at different times from your neighbors or other family members. On a jointly filed return, the first Social Security number listed will determine the mail-out time.

The IRS expects to make about 34 million payments within the first three weeks after the payment schedule begins May 2nd. With more than 130 million households expected to receive stimulus payments, more than 25 percent of the payments will be made in the first three weeks.

Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by April 15, 2008.

For taxpayers who didn’t choose direct deposit on their tax return but whose returns were processed by April 15th, the paper checks will be in the mail starting May 16, with the initial mailings completed by around July 11th.

The IRS also announced the availability of an on-line calculator on IRS.gov to help taxpayers determine if they’re eligible to receive an economic stimulus payment. If they are the on-line calculator will give you an indication of how much they can expect.

Anyone who has prepared a 2007 income tax return can use the calculator. It’ll ask taxpayers a series of questions, so they should have their 2007 tax returns handy. After answering the questions, the calculator will provide the projected dollar value of the payment.

Stand by people – the check is in the mail!