Smith: Some rebates won't hit mail until July -- or later

Dear Scott: I know you wrote about the economic stimulus package a couple of months ago, but I got to wondering: How is the IRS going to mail out all those checks in the single month of May?

-- C.B., Gurnee

Dear C.B.: Truth is some taxpayers won't get their rebate checks until mid to late July or later.

The economic stimulus checks will be issued according to the last two digits of the main filer's Social Security number. And those who use direct deposit will be among the first to receive their payments.

For those who will receive a paper check, the mailing schedule goes like this: last two digits 00-09, May 16; 10-18 May 23; 19-25, May 30; 26-38, June 6; 39-51, June 13; 52-63, June 20; 64-75, June 27; 76-87, July 4; and 88-99, July 11.

Those taxpayers who file their return after April 15 will receive their stimulus check later.

A return must be filed by Oct. 15, in order to receive a payment.

The $168 million rescue package will allow as many as 130 million Americans to get the rebate. Individual taxpayers will receive $600, and couples will get $1,200. Those individuals who earn at least $3,000, but don't pay taxes, will get $300 if single or $600 for a couple. Taxpayers with minor children will receive an additional $300 for each youngster.

The jury is still taking a nap on whether the rebates will actually stimulate the economy as intended.

If the latest polling is any indication, then Americans are clearly not going to do the president's bidding. Nearly 70 percent of those polled say they will either save the money, pay debt with it, or use it for living expenses.

Other survey findings include the fact that older Americans are least likely to pay off debt; lower-income individuals are more likely to spend their rebate on necessities. Higher-income Americans, those earning more than $50,000 per year, are more likely to save. They'll do so simply because they can. And surprisingly is the fact that younger adults (ages 18-34) are not likely to splurge on discretionary purchases.

The polls also show that men are more likely to pay off debt while women are more likely to save. From a national perspective, spending the money on high-ticket items like a big-screen TV, a kitchen appliance or a humongous truck would be a boost to an economy that is teetering on recession.

And while it would be unfair to call non-spenders unpatriotic, if you really want to help keep the big, recessionary wolf on the other side of the fence, spend the money on something frivolous.

U. Scott Smith is with Wealth Management Services at Waukegan Savings Bank. Write him at 1324 Golf Road, Waukegan, IL 60087 or usmith@moneyconcepts.com All securities through Money Concepts Capital Corp., 1509 N Milwaukee Ave, Libertyville, IL 60048; member FINRA/SIPC; are not FDIC-insured; are not a bank deposit; are not guaranteed by any government agency.