SAN DIEGO -- The San Diego office of the Internal Revenue Service announced Monday that the IRS will begin sending more than 130 million economic stimulus payments starting May 2. The initial round of weekly payments will be completed by early July, officials predicted.

The IRS also announced the availability of a new online calculator to help people determine the amount of their stimulus payments.

A news release from the IRS stated the stimulus payments will be made by direct deposit to those who choose to receive their 2007 income tax refunds through direct deposit. All others will get a paper check.

“To receive an economic stimulus payment, people just need to file their tax returns as they usually do,” said IRS Acting Commissioner Linda E. Stiff. “The payments will be automatic for the vast majority of taxpayers."

"Some lower-income workers and recipients of certain Social Security and veterans benefits who don’t normally need to file a tax return will need to do so in order to receive a stimulus payment,” Stiff said.

IRS officials said the stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return and because of that, some may receive their payments at different times than neighbors or family members. On a joint return, the first Social Security number listed will determine mail-out time.

The IRS expects to make about 34 million payments within the first three weeks after the payment schedule begins May 2. With more than 130 million households expected to receive stimulus payments, more than 25 percent of the payments will be made in the first three weeks.

Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by April 15, 2008.

For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by April 15, the paper checks will be in the mail starting May 16, with the initial mailings completed by around July 11.

The IRS also announced Monday the availability of an online calculator on IRS.gov to help taxpayers determine if they are eligible to receive an economic stimulus payment and, if they are, how much they can expect.

Anyone who has prepared a 2007 income tax return can use the calculator. It will ask taxpayers a series of questions, so they should have their 2007 tax returns handy. After answering the questions, the calculator will provide the projected dollar value of the payment.

Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008.

Direct Deposit Payments

If the last two digits of your Social Security number are: Your economic stimulus payment deposit should be sent to your bank account by:

• 00 – 20 May 2
• 21 – 75 May 9
• 76 – 99 May 16

Paper Check

If the last two digits of your Social Security number are: Your check should be in the mail by:

• 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
• 88 – 99 July 11

The IRS said 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.

According the IRS, all or part of an economic stimulus payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset.

To accommodate people whose tax returns are processed after April 15, the IRS said it will continue sending weekly payments. People who file tax returns after April 15 and receive a refund can expect to receive their economic stimulus payments in about two weeks after receiving their tax refunds. However, to ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.

Two Treasury Department bureaus are involved in making the payments. The IRS will calculate the amount of each payment based on tax year 2007 income tax returns. The IRS will then forward the information to the Financial Management Service, which is the Treasury bureau that makes federal payments such as Social Security benefits, federal income tax refunds and, now, economic stimulus payments.