As you know by now, many taxpayers will be receiving a rebate later this year. The purpose of this rebate was to help the struggling economy, but there are fears that this stimulus package will have little impact. Many people are struggling and find money is tight, and the $600 or $1,200 they may receive will do little more than help keep their bills current or pay down some existing debt.
Are You Eligible for a Tax Rebate?
Another big question people have regarding this rebate is whether or not they are eligible, and if so, when they can expect to see it. For detailed information about this tax stimulus package, who’s eligible, and what you need to do in order to receive your rebate, the IRS has set up a helpful website with a lot of good information. If you’ve already done your 2007 taxes, you can use a simple rebate calculator that will determine how much, if any rebate you’ll receive.
When You Can Expect to Receive Your Rebate
The rebate processing will be done by the last two digits of your Social Security number. If you have direct deposit information on file, your economic stimulus payment deposit should be sent to your bank account by:
- 00 â’ 20 May 2
- 21 â’ 75 May 9
- 76 â’ 99 May 16
If you don’t have direct deposit information on your return, you will be receiving your rebate via mail in the form of a check. Again, the checks are sent out based on the last two digits of your Social Security number. Based on the last two digits, your rebate should be in the mail by:
- 00 â’ 09 May 16
- 10 â’ 18 May 23
- 19 â’ 25 May 30
- 26 â’ 38 June 6
- 39 â’ 51 June 13
- 52 â’ 63 June 20
- 64 â’ 75 June 27
- 76 â’ 87 July 4
- 88 â’ 99 July 11
All information aside, if you’re expecting a tax rebate, what are your plans for the money? Stash it into your emergency savings? Make an IRA contribution? Buy new carpet for your living room? Pay off a credit card?
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
Use the money to buy yourself a piece of original art. Your purchase will support an artist. The money spent will enter the economy at a grassroots level rather than going towards some oversized institution or overseas. And, the best part, you’ll get something with lasting value. Everyone wins.
No, this is a tax rebate. This means it is basically a refund on taxes that you would have otherwise paid. They aren't going to tax your own tax money.
Will we have to include the $600 as income when we file our 2008 taxes? In other words, iwill the $600 be taxed?
Save it...come next year I will probably just have to give it back with the out of control spending habits of Washington!
This stimulus is coming just in time. Most of it is going to debts right before we move, so technically it's freeing up more cash to be able to do things we had to do anyway. Woohoo!
It's not stopping recession or anything, but is definitely helping me when I really need it.
Forgot to give my source on that:
Rebate will post on the schedule according to the first taxpayer listed on a joint return. So, behooves to list the taxpayer first who has the soonest rebate posting date per SSN ending.
Here's a question I couldn't find the answer to on the IRS website...I thought I'd put it out there to anyone who might know:
My husband and I file jointly. My SS# ends in 05, his ends in 99...what date will our rebate be directly deposited?
ok, if I wasn't going on a free trip to France (paid for with airline miles and hotel points left over from my last job), I'd stick in in my Roth IRA.
my wife and I only get a $27 rebate...so I imagine we'll walk down to our favorite mexican restaurant...have a cheap meal and leave a big tip.
...and my social ends in 01...niiiice.
Well, I see there aren't a very large percentage of spenders in the group, but that doesn't surprise me. I've seen a number of these types of polls on various news and finance sites, and the results are basically the same. Most people are going to use the money to pay off some debt, pay the bills, or just save it.
For us, we haven't really decided yet. There are no specific items we need to buy, yet there are plenty of little improvements to make around the house. Since it will be coming at the beginning of summer, it will probably get used on landscaping or exterior improvements.
Some family used their frequent flyer miles to buy our family of 5 tickets to visit Alabama in May, so we'll be using our rebate for that vacation! Nice timing!
I don't think about what I am going to do with *my* rebate check. I think about what I am going to do with everyone else's:
No tax stimulation payment for me (so I didn't vote so as not to blow the poll results). If I were to get a rebate check, it would just get funneled into my brokerage sweep account (NDLXX) with the rest of my investment income.
Spending it! On a new wood privacy fence to replace our ugly chain link one and cut down on the barking of the neighbor's dogs. We were going to purchase the fence anyway - the "rebate" just helps us pay for it a different way and maintain more of our savings.
I won't be getting a tax rebate check. If I did, I'd probably buy a half-ounce gold coin to make a point about monetary expansion and inflation.