The Associated Press reports that four states, California, Michigan, Rhode Island, and South Carolina reported jobless claims above 10 percent for this past January. Only Michigan reported a double-digit jobless rate just one month earlier. Over 5 million people are now taking advantage of unemployment insurance, emptying state budgets. Job losses are coming from all sectors of the economy – manufacturing, construction, banking, high tech, and service jobs are all being cut. Unfortunately, even the most optimistic projections expect the recession to last at least through 2009.

Citing a sudden turn around in the S&P Bank Index and surges in some bank stocks, CNNMoney.com editor Paul La Monica is asking if our nations banks have finally hit bottom. Chase, Wells Fargo, Bank of America, and Citigroup have all had double digit growth this week. But as La Monica makes clear in his article one week isn’t enough to create much confidence after the past 6 to 8 months that have decimated the banking industry. As investment advisor Marc Groz in La Monica’s articles says “The bottom is zero”. However, not all banks are equal. Some of the investors who have run from the banking sector like the plague may now be ready to take a close look at individual banks in hopes of getting in on the ground floor of the recovery. The article cites examples of investors who are looking outside the ‘big boys’ to find those gems with solid balance sheets. But there are huge differences between the banks who keep getting mentioned in the news as well. Time has a great article that looks deeper into Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo to find out what the future may hold for these behemoths. Despite the bailout, not all of these characters will still be on the stage in a couple of years, but those that survive may come back stronger than ever – kind of a financial Darwinism. Whether you’re an investor or you just have some savings in one of these institutions I recommend you check out both of these articles.

The IRS announced that on May 2nd, they will begin sending over 130 Million tax rebate checks as part of the president’s economic stimulus package. If you direct deposited your 2007 tax refund, your stimulus tax rebates will be given priority for payment. If you chose to receive your tax refund payments via the USPS, you will get your economic stimulus check sometime in mid to late May.  This is because those who leveraged direct deposit are given priority as it is cheaper and more efficient for the IRS to process.

Receiving the Economic Stimulus Tax Rebate is based on Social Security Number

The IRS will use the last two numbers of your SSN to determine the order that the tax rebate checks will be delivered.  The SSN to be used for determination is the one that was first on the tax return. The IRS stated via its public communication that because SSN is being used to deliver rebates instead of name or household address, it is highly likely that other family members will not receive their economic stimulus tax rebates in the same time-frame.

IRS Economic Stimulus Package- Tax Rebate Payment Schedule - (only for federal tax returns filed, received and processed no later than April 15th):

Filers electing the Direct Deposit Refund Option: 
Last two digits of your Social Security Number and related economic stimulus payment rebate bank account deposit date:

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

Filers electing the “check in the mail” Option: 
Last two digits of your Social Security Number and related economic stimulus payment rebate check mailing date:
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

If you haven’t filed your taxes yet, here is how to ensure that you receive your tax rebate check quickly.
Electing the direct deposit option ensures that you get your economic stimulus tax rebate check by May 16th at the latest.  More importantly, you MUST file your 2007 federal taxes by April 15th, no exceptions. If you file after April 15, you can expect to receive the   economic stimulus tax rebate payment approximately 2 weeks after you get your tax refund payment. If you plan to file an extension, in order to get your tax rebate by year end, the latest date for filing your taxes is October 15th, 2008.  Because not all tax returns will be received and processed by the filing deadline, the IRS will continue to send weekly payments after the expiration of the above schedule so that everyone gets paid.

In bankruptcy or subject to existing tax liens for delinquent and/or outstanding unpaid debts like child support, back taxes, student loans, it is possible (and most likely) that the economic stimulus tax rebate check will be stopped.  If you are impacted, the IRS will send a letter that explains the justification for the tax rebate offset.

The elderly are increasingly the primary targets for identity theft scams. The fastest growing crime in the U.S., identity theft is showing no signs of slowing down even as options for protection yourself increase. Four gang members in Fresno California were just arrested for elderly abuse and identity theft after scamming victims that included a 97 year old. The scammers generally contacted the victims by telephone, representing themselves as government officials requesting information such as social security numbers and family history. This reinforces many of the simple tips I’ve been sharing for years - protect your social security number, permanently destroy any sensitive garbage that may contain your personal information, store information in secure locations, and consider purchasing identity theft protection. Make sure you follow these steps and share them with older folks in your life, such as your parents. You could be saving them a ton of grief.