Economic Stimulus Checks

Some people are being stimulated the wrong way by this whole economic stimulus thing. 15,000 people did not get their check because a computer glitch put fifteen thousand checks into the the wrong bank accounts! We got ours OK, and they say that the majority of people who have been issued them have received them OK, but there are those 15,000 who, hopefully, have not already spent the money, because their checks went to the wrong way.

I couldn’t believe it when I read the story this morning, well I guess I could. What I thought was exceptional–and definitely unexpected–was that the IRS was notified by someone who got an unexpected $1,800 deposit in his bank account. the bank was able to track it down to a deposit from the IRS and the man called right away. Most people these days, unfortunately, would have just taken the windfall and been spending their little hearts out. Not a smart move. When the IRS tracks them all down, the WILL get their money back, even if they have to take it before you receive your paycheck! And, even though it was THEIR mistake….they will take their money back with interest! I just hope they don’t have another glitch and decide that checks that were deposited legitimately need to be taken back! After seeing their first mistake, it could happen!

So……where is YOUR economic stimulus check? The IRS actually has a form setup on their website that you can check to see the status of your economic stimulus payment. The information is not available until a week before your payment will be sent. If you’re interested you can click on this link to check your Stimulus Payment Status.

The question has been asked as to whether the economic stimulus payment is taxable. Well, the wishy-washy answer from the IRS is: The economic stimulus payment is not taxable and will not increase your taxable income any, but you should keep your documentation and records regarding it just in case. Will someone please define “just in case”!!!!!! The way I read that is, its not taxable now, but when the tax laws are passed for next year (and just why do they change them every year?) I expect that all or at least part of the payment will be taxable. Otherwise the answer would have just been: NO! Not taxable.

The payment was probably a good idea to infuse the economy with cash and get some things under control, lets just hope that it doesn’t turn into a nightmare because of this.