It’s a Done Deal – The Rebate Checks Are On Their Way

President Bush signed the bill for the economic stimulus package.

The checks aren’t in the mail, but they will be soon. President Bush signed legislation Wednesday to rush rebates ranging from $300 to $1,200 to millions of people, the centerpiece of government efforts to brace the wobbly economy. First, though, you must file your 2007 tax return.

[Via Yahoo.com]

Our family of three will receive a check for $1,500 and it’s going straight towards our debt. We don’t need to buy a big TV or treat ourselves to a fancy dinner with that money. It’s going to get us a little bit closer to our debt payoff goal.

I have been a little concerned about how this rebate would be treated with next year’s taxes. According to an article on the Consumerist:

…it’s an advance on an additional credit Congress passed for your 2008 earned income.

So next year when you are doing your taxes, there should be a credit on there that you claim, but then have to deduct the amount of the rebate check you received.

I guess I better get crackin’ on filing our 2007 taxes!

Posted by Tricia on February 14, 2008 at 12:44 AM in Misc | 19 Comments »
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Mar responded:
Posted: February 14th, 2008 at 9:01 am
Here’s the encouragement you need to get your taxes done, presuming you are getting a refund. I filed electronically on 1/29 around 11:30 p.m. and my refund was direct deposited into my checking account on 2/8. Remember when it took 6 weeks to get a refund because it was all done on paper and through snail mail? It wasn’t that long ago!

My state refund took less than a week from filing to deposit!
thehungrydollar.com responded:
Posted: February 14th, 2008 at 9:28 am
Great decision on sending the money straight to paying off debt. I plan to do the same. There will be enough people buying TVs they can’t afford to stimulate the economy, we don’t need to be one of them…
Jill responded:
Posted: February 14th, 2008 at 10:22 am
I know you are on this huge debt reduction journey but have you considered putting ANY of it back into the economy. The purpose of the rebate is to help stimulate the economy not help people get out of debt. Helping to stimulate the economy helps everyone not just yourself. People who put it all toward debt are the people who make this idea fail. I understand putting some of it toward debt but does all of it really need to go toward debt? Take a little of it and treat yourself for doing so well.
The All-seeing I responded:
Posted: February 14th, 2008 at 10:28 am
Spending it on TVs or debt is still spending it, and returning that money “to the Economy.”

That’s the point most people are missing. All the refund is doing is adding money to the circulating pool – it doesn’t matter what it is spent on, as long as it is spent.

Now, if nobody cashed their rebate checks, or everybody got together and burned them, THAT would be interesting….
What I Sent My Credit Card Company For Valentine’s Day « If I Were Debt Free… responded:
Posted: February 14th, 2008 at 10:46 am
[...] as an incentive to get your taxes done, the stimulus plan has been signed. We’ll get a fair chunk of change from that (just count the children on the [...]
Sherri responded:
Posted: February 14th, 2008 at 11:37 am
So I just wanted to see if I was clear on actual amounts:

From the Yahoo article:

“Who gets a rebate? Most people who pay taxes or earn at least $3,000, including through Social Security or veterans’ disability benefits. Singles making more than $75,000 and couples with income topping $150,000, however, will get smaller checks, up to the top limits for any rebate: incomes of $87,000 for individuals and $174,000 for couples.”

“Most taxpayers will receive a check of up to $600 for individuals and $1,200 for couples, with an additional $300 for each child.”

The way I read this is that singles making less than $75,000 (couples $150,000) but more than $3,000 will get $600. Less than $3000 gets less and greater than $75,000 gets less. Is that your understanding of it? Everyone that falls in that middle space gets $600 if individual and $1200 if a couple (plus $300 per kid)? I’m still hesitant it’s that “simple” because it says “most taxpayers receive a check of up to $600.” Such an odd way to word it…
Tricia responded:
Posted: February 14th, 2008 at 12:17 pm
Sherri – that’s what I understand. Another blogger had a calculator on their site, but unfortunately I can’t remember which one. I’ll try to find it.
Tricia responded:
Posted: February 14th, 2008 at 12:55 pm
Here’s a link to the calculator I mentioned:

http://www.consumerismcommentary.com/2008/01/28/economic-stimulus-tax-rebate-calculator/
Matt responded:
Posted: February 14th, 2008 at 2:03 pm
Always nice to get a little bonus like this!! Good move putting it against your debt to get it cleared faster.

Most of us don’t need the big and fancy toys – our society drives us to want them.
Mom responded:
Posted: February 14th, 2008 at 2:39 pm
our rebate is going to debt too.
Sherri responded:
Posted: February 14th, 2008 at 4:32 pm
Thanks Tricia!
moonimus responded:
Posted: February 14th, 2008 at 11:39 pm
We also qualify for $1,500. Our tax refunds will wipe out our credit card debts so this refund will probably go to a Roth.
Danielle responded:
Posted: February 15th, 2008 at 5:47 am
Trish-
I agree with you. You should put it *straight* towards your debt. I haven’t checked in for a while, and I see you are doing great. Keep it up. As for me with this rebate check, I am not going to count on it/believe it until I have the check in my hands.
Erin Truog responded:
Posted: February 15th, 2008 at 6:37 am
I love that you are putting it towards your debt, I will do the same. I refuse to feel bad about “Not Spending It”. You are a responsible person who is doing the right thing for your family.
Mar responded:
Posted: February 15th, 2008 at 9:00 am
Mine will go into either my savings account or my Roth account, whichever needs it more when it’s received.

All Seeing I, I LOVE the idea of burning it, but I don’t think we’d get too many people to go along with us on that one.

Jill, since so many things are not manufactured in this country, who’s economy are we stimulating by buying something made in China or wherever? Sorry, since we are already borrowing from the next generation to get the money for this rebate, I see no reason why I shouldn’t save it for my future needs. Besides saving it or using it to pay down debt may help ease the current credit crunch and free up money for businesses to expand, create jobs, etc.
thehungrydollar.com responded:
Posted: February 15th, 2008 at 10:27 am
The All-seeing I, you’re right. Paying off debt is still putting the money back into circulation. I guess I didn’t see it that way at first. Good point…
Joy Smith responded:
Posted: February 15th, 2008 at 11:18 am
I would love to put it towards debt. However, we’re in dire need of another vehicle, so it looks like it will be going towards that, instead! Thanks for the heads up on this. I had no idea it even existed! We’re headed to H&R Block due to several changes last year with us, for our tax preparation. I hope they are smarter than I am on knowing about this rebate.
Ryan responded:
Posted: February 15th, 2008 at 11:25 am
I spoke with my Dad the other day about the tax rebate. All the people he and myself has spoken to said they were going to put it towards debt. You say to yourself “But it is to stimulate the economy so spend like you’re going to lose it!”. Regardless if you spend it on something new (going to buy) or something you already bought (pay down debt). Both spending situations would help stimulate the economy. One might make it more earlier than the other. If you spend it now, it could be preceived as stimulating now. But if you pay down debt, you will have money in the future to spend with rather then spending it on past purchases and interest – therefore stimulating the economy in a late sense. If you ask me, it my money in the first place so I’ll do whatever I want with it. In my opinion, this is the best government spending they’ve done since 2001!
I Finally Started Our Tax Return » Blogging Away Debt responded:
Posted: February 20th, 2008 at 12:05 am
[...] finally decided to do them especially since the rebate checks are dependent on our tax return. The federal turned out nicely. We will get about $250 back. I [...]