Stimulus Payment Schedule for Tax Returns Processed by April 15

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting May 2. Paper checks will be put in the mail starting May 16.

DIRECT DEPOSIT

Last two SSN digits:	Payment will be transmitted:
00 through 20	May 2
21 through 75	May 9
76 through 99	May 16

PAPER CHECK

Last two SSN digits:	Payments will be mailed by:
00 through 09	May 16
10 through 18	May 23
19 through 25	May 30
26 through 38	June 6
39 through 51	June 13
52 through 63	June 20
64 through 75	June 27
76 through 87	July 4
88 through 99	July 11

People who file a return after April 15 will receive their economic stimulus payment, but probably about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year. See the online calculator for an estimate of the amount you will receive.

A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.

Related Item: IR-2008-44, IRS Announces Economic Stimulus Payment Schedules, Provides Online Payment Calculator

Business miles for 2008 is set at 50.5 cents per mile

Congress Enacts Last-Minute Tax Bill – Extends Certain Provisions

Just prior to adjourning on December 9, Congress passed the Tax Relief and Health Care Act of 2006 (H.R. 6111). This bill, which was signed into law by the President on December 20, contains a number of provisions that may affect most taxpayers. Among other provisions, the legislation will:

	Extend the deduction for teacher's miscellaneous expenses
	Extend the research and development tax credit
	Extend the deduction for state and local sales taxes
	Extend and expand the work opportunities credit
	Extend the above the line deduction for higher education expenses
	Extend and expand to petroleum products the expensing of browns fields remediation costs
	Extend fifteen year depreciation for leasehold and restaurant improvements
	Provide for an enhanced charitable deduction for scientific property and for certain computer technology and equipment
	Extend the availability of Archer medical savings accounts
	Extend the suspension on the limit on percentage depletion for oil and gas from marginal wells
	Extend the authority for the IRS to disclose certain tax information
	Extend the placed-in-service deadline for Gulf Opportunity Zone property

For a complete technical explanation of the bill, go to http://www.house.gov/jct/x-50-06.pdf.

Click on the following for latest tax information:

NSTP - National Society of Tax Professionals

NAEA - National Association of Enrolled Agents

IRS Announces 2007 Standard Mileage Rates

IR-2006-168, Nov. 1, 2006

WASHINGTON — The Internal Revenue Service today issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

48.5 cents per mile for business miles driven;

20 cents per mile driven for medical or moving purposes; and

14 cents per mile driven in service to a charitable organization.

The new rate for business miles compares to a rate of 44.5 cents per mile for 2006. The new rate for medical and moving purposes compares to 18 cents in 2006. The primary reasons for the higher rates were higher prices for vehicles and fuel during the year ending in October.

The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study for the IRS.

The mileage rate for charitable miles is set by statute.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously. Revenue Procedure 2006-49 contains additional information on these standard mileage rates.