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Why is IRS giving out these special payments?
We are administering the new tax law recently signed by President Bush,
which provides for these advance payment checks to be sent to taxpayers.
What do I need to do to get this advance payment?
You don't have to do a thing. The payments are automatic. You will
receive a letter telling you if you are eligible, how much to expect,
and when you will receive the check.
Who gets the advance payments?
In general, if you paid taxes for 2000, you may be eligible for this
advance payment of the 2001 credit. Those who did not pay income taxes,
could be claimed as dependents on someone else's return, and nonresident
aliens are not eligible for this payment.
If I'm eligible, how much is my advance payment?
The amount of your payment is based on the taxable income shown on your
2000 return. The amount is 5% of your taxable income up to a maximum of
$300 for a single taxpayer, $500 for head of household and $600 for a
married couple filing jointly. If your tax liability after nonrefundable
credits is less than these maximum amounts, your limit is the smaller of
this amount or 5% of your taxable income. If you did not have a tax
liability for 2000 but do have one for 2001, you may be able to claim
the tax credit on your 2001 return.
How do I know what my taxable income and tax liability were?
How do I know what my taxable income and tax liability were?
The easiest way to find your 2000 taxable income is to look at Form 1040 line 39, 1040A line 25
, 1040EZ line 6, or line K on the TeleFile Tax Record. The tax liability used in figuring the
advance payment is on Form 1040 line 51, 1040A line 33, 1040EZ line 10, or line K on the TeleFi
le Tax Record. If you did not have a tax liability on this line of your 2000 return, you are n
ot eligible for the advance payment.
How do I know if I'm getting an advance payment
check?
IRS will send you a letter in advance of the payment explaining the
amount, when to expect your advance payment check and the possibility
that the amount will be applied to other debts. These letters will begin
going out the first week of July. You should keep this letter with your
other tax records for 2001.
What is the purpose of these 2001 Advance Payments?
The law is intended to give taxpayers the benefit of a new 10% tax
bracket had it been in place for 2001.
When will I get my advance payment check?
Because of the millions of taxpayers involved, it will take about 10
weeks for Treasury's Financial Management Services to finish mailing
checks to those taxpayers who have already filed their 2000 tax returns.
Financial Management Services will mail several million checks each week
beginning in late July. Checks will be distributed according to the last
two digits of the Taxpayer Identification Number (generally, the Social
Security number) with the last checks for returns filed this April to be
mailed the week of September 24. See the attached distribution schedule.
Is this payment taxable income?
This amount will not be included in income on your Federal tax return.
Requirements for your state return may be different.
If I owe back taxes, will I still get the advance
payment?
The amount of your advance payment will be applied first to any Federal
income tax you owe. If the amount is larger than the debt, you will get
a check for the difference. If the full amount is applied to the taxes,
you will not receive a check.
If I have an installment agreement with the IRS,
will I still get the advance payment?
The advance payment will be applied to the balance due. You should still
make your regular, required monthly payment. The advance payment only
reduces the total amount you owe; it does not change the terms of your
installment agreement.
I don't owe any back taxes but I received a notice
that told me I would not be getting a check because my advance payment
is being used to pay off a debt I owe. How does that work?
Your payment may be reduced because of an outstanding government debt
such as certain past-due child support. If the amount is larger than the
debt, you will get a check for the difference. If the full amount is
applied to the debt, you will not receive a check.
I haven't filed my 2000 tax return yet. Will I still
get this advance payment?
Since the amount is based on the taxable income reported on your return,
you won't receive the advance payment until your 2000 tax return is
filed. If you have an approved extension to file, you should file by the
extended due date in order to receive your advance payment by the end of
the year. Treasury will continue to send checks out through the end of
December so the sooner you file your return, the sooner you will receive
your advance payment.
I filed a 2000 tax return but had no taxable income.
Will I still get the advance payment?
To be eligible for this advance payment, there must be taxable income
reported on your income tax return. The easiest way to find out your
taxable income is to look at Form 1040 line 39, 1040A line 25, 1040EZ
line 6, or line K on the TeleFile Tax Record.
I am a college student, with a part-time job, and
paid income taxes, but my parents still claim me on their tax return. Do
I get the advance payment?
If you can be claimed as a dependent on someone else's return in 2000,
you will not be eligible for the advance payment.
Can my advance payment be directly deposited into my
bank account?
Unfortunately, direct deposit is not possible because the account
information used during the filing season may no longer be accurate. For
example, for thousands of taxpayers who obtained refund anticipation
loans, the accounts they designated on their returns are generally
closed after the loans are paid off.
If my spouse and I filed our tax return together,
married filing jointly, whose name will be on the check?
The name(s) on the check will be the same as the name(s) on the 2000 tax
return.
What happens if I've moved since I filed my 2000 tax
return?
Will my advance payment check find me? If you have not already sent the
address change information to IRS and/or the Postal Service, do that
immediately. Before sending out any checks we will update our records
with current address information provided by the Postal Service. If you
have provided the Postal Service with change of address information,
your check will find its way to you.
Where can I find more information on these advance
payments?
Be on the lookout for the advance notice from IRS telling you whether or
not to expect a payment. General information will also be available on
the 2001 Advance Credit Information Page and automated telephone
messages are available at 800-829-1040.
How long should I wait for my advance payment before
checking on it?
The last checks for those who filed by April will be mailed the week of
September 24, 2001. If you have not received a check by the following
Friday, October 5, you may call 800-829-1040. We cannot follow-up before
that date. For those who filed later, Treasury will continue to send out
checks until late December.
I filed my 2000 return as married filing joint but
will not be filing as joint for 2001. How will I handle this advance
payment on my 2001 return?
This advance payment is considered as being given equally to each
taxpayer on a joint return. For example, if you filed jointly for 2000
and received an advance payment of $600, you would each consider that
you had received a $300 advance payment when doing your 2001 return.
Check Distribution Schedule
| Week |
If the last 2 digits of your SSN are between: |
You should receive your check the week of: |
| 1 |
00 - 09 |
July 23 |
| 2 |
10 - 19 |
July 30 |
| 3 |
20 - 29 |
August 6 |
| 4 |
30 - 39 |
August 13 |
| 5 |
40 - 49 |
August 20 |
| 6 |
50 - 59 |
August 27 |
| 7 |
60 - 69 |
September 3 |
| 8 |
70 - 79 |
September 10 |
| 9 |
80 - 89 |
September 17 |
| 10 |
90 - 99 |
September 24 |
For married taxpayers who filed a joint return, the
first Social Security number on the return determines the mailing date
for the advance payment.
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