Beginning July 23, every taxpaying American will be receiving a tax refund check from the U.S. Treasury. The checks are for as much as $300 for single taxpayers, $500 for heads of households and up to $600 for married couples.
This will come as welcome news to families who need to pay their electric bills, fill up their cars for a vacation trip, shop for school clothes for the kids or write that college tuition check.
In June, Congress passed and President Bush signed into law the Tax Relief Act of 2001. It provides substantial, long-term tax relief to those who pay federal taxes – and immediate tax relief in the form of rebates on the incomes taxes Americans have already paid in 2001, before their rates were reduced. This landmark legislation provides for the largest federal tax cut in two decades. In fact, since World War II, this has been accomplished only twice: President Kennedy's tax cut in the 1960s and President Reagan's in the 1980s. It is an initial payment on Congress' commitment, and the President's, to return the federal budget surplus to the people who earned it.
The U.S. Treasury is only able to send out 11 million checks a week, so the Treasury will issue the checks in 10 separate mailings over 10 weeks, according to the last two digits of the taxpayer's Social Security number. Why the last two digits? The first numbers of our Social Security number correspond to the state where we were born, the last numbers are randomly assigned. This means that the checks are being issued in no particular geographical order, in as even-handed a manner as possible.
If the last two digits of your Social Security number are between, you will receive your check the week of:
Last Two Digits of Social Security Number
Refund Check will be Mailed the Week of:
00-09
July 23
10-19
July 30
20-29
August 6
30-39
August 13
40-49
August 20
50-59
August 27
60-69
September 3
70-79
September 10
80-89
September 17
90-99
September 24
Taxpayers don't need to do anything to receive the checks. Those who have moved should file a change of address form with the U.S. Postal Service to ensure their checks go to the right address. They also may notify the IRS directly by filing Form 8822, "Change of Address."
In addition to their tax rebates, Americans also will see a phase-in over 10 years of relief from the marriage tax penalty, elimination of the death tax and across-the-board income tax relief. In addition, we have doubled the child tax credit to $1,000 and expanded education savings accounts.
The four major provisions of the legislation will save Texans $62.7 billion through rate reductions and estate tax relief, $12 billion in expanded child tax credits and $4.5 billion for marriage tax penalty relief, for a total of $79.1 billion over the next 10 years.
Nationwide, 100 million individuals and families will participate in this tax cut; 14 million elderly Americans will receive a tax reduction, resulting in 12 million paying less tax on their Social Security benefits. More than 40 million couples will get marriage tax penalty relief and 3 million couples will no longer have to itemize deductions as a result of an increase in the standard deduction.
This is the most significant legislation Congress has passed since I was elected to the Senate. I have worked for four years for marriage tax penalty relief – over 10 years, we will get that...and more.
