Economic stimulus payments to start coming in May

America’s taxpayers will start receiving economic stimulus payments by early May, if they have certain Social Security numbers.

The Internal Revenue Service announced this week that it will begin sending the more than 130 million stimulus payments to taxpayers starting May 2.

Direct deposit payments and checks will be sent out according to the last two digits from tax filers’ Social Security numbers, IRS officials said. The lower the number, the sooner taxpayers will get their payment.

“The last time we had a rebate in 2001, it was done the same way,” said Dan Boone, Tennessee spokesman for the IRS. “That’s how we keep records.”

Mr. Boone also said using Social Security numbers would make it so that Tennessee residents would not get their payments before or after anybody else.

“It ensures uniform geographic disbursal,” he said.

Deborah Parham, Chattanooga and Cleveland, Tenn., regional manager for H&R Block Inc., said the Social Security number method likely is the only way the IRS fairly could send out the payments.

“There’s got to be some semblance of order to it,” she said.

A timeline released by the IRS shows that taxpayers whose federal income tax returns are processed by April 15 and who asked for direct-deposit refunds will receive payments between May 2 and May 16.

The IRS will distribute about a quarter of the stimulus payments within those three weeks, according to the agency.

Checks will go out May 16 for filers who did not request direct deposit and whose Social Security numbers end with digits between 00 and 09. Those with Social Security numbers that end in digits between 88 and 99 will have their checks mailed July 11.

Congress in February passed the $168 billion economic stimulus package, which returns $600 to $1,200 rebates to most taxpayers and $300 to low-income people, including disabled veterans and the elderly.

To get the rebate, residents must file a tax return, even if they do not normally do so.

Ms. Parham said that has been the biggest point of confusion for customers.

“We’re trying to get the message out that you have to file the tax return,” she said. “As long as they file, that’s the biggest thing.”

People whose tax returns have not been processed by April 15 can expect their payments about two weeks after receiving their regular tax refunds, according to the IRS. To get a stimulus payment, a taxpayer must file a return by Oct. 15.

Lynn Rodgers, principal in charge of tax practice for Chattanooga-based Joseph Decosimo and Co., said her clients are more interested in other provisions of the stimulus plan, which provide breaks for small and medium-sized businesses.

For instance, businesses will be able to expense nearly twice as much in asset purchases for the 2008 tax year, she said.