Bush signs stimulus package

by Angie Felton (Subscribe to Angie Felton's posts) Feb 13th 2008 4:33PM

Earlier today, President Bush signed a stimulus package he called "a booster shot for our economy" in an effort to head off a recession in the United States.

This coming May, taxpayers will receive a check of up to $600 for individuals and $1,200 for couples from the IRS, with an additional $300 per child.

People earning at least $3,000 and those who owe little or no taxes would get $300 for singles, $600 for couples. Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates - $50 less per $1,000 they make over those thresholds.

The hope is that people will treat the checks like birthday money from fun Uncle Sam and spend it with wild abandon, but we're gonna stick it to The Man and use ours to pay down some debt.

What are you plans for your rebate?

Source

Comments (15)

Reader Comments (Page 1 of 1)

SKL 2-13-2008 @ 5:05PM

Hmm, if your numbers are correct, I won't be getting one. Grr.

Crystal 2-13-2008 @ 5:25PM

I actually might be getting a gaming system for the house. We LOVE playing Guitar Hero III at our aunt and uncles so I am looking into getting either a Wii or an XBOX 360. I would be using the money to pay down bills but I have been working hard and studying hard for the past few years- time to enjoy my free time a bit!!!

the goddess anna 2-13-2008 @ 6:13PM

We're also using ours to pay down debt... which will be good for the economy later on when we need the credit to purchase a new house later this year! : )

Heather 2-13-2008 @ 6:17PM

Ok...Does anyone remember? We had to take that money they "gave" us last time off of our tax return the following year. They aren't just going to GIVE us anything...this is the US government we are talking about. Also, did anyone else notice that they are giving us the money so we don't blame them for the economy going down durring elections? Sounds like passing the blame to us if you ask me.

Melissa 2-13-2008 @ 6:22PM

I read recently that this "rebate" will be deducted from the refund you'll normally get from your '08 tax return. So, this time next year, your tax refund will be less.

Don't know if they changed that or if it's still true, since the article the blogger posted didn't say. Here's the article I'm referring to.

http://articles.moneycentral.msn.com/Taxes/Advice/TheDetailsOnTaxRebates.aspx

Sheryl 2-13-2008 @ 6:19PM

Savings (my cash cushion needs a little "fluffing"). If I go really nuts, I might replace my hot water heater and bank the rest.

Melissa 2-13-2008 @ 6:36PM

". . . go nuts and replace the water heater." Snort!

rasc 2-13-2008 @ 7:23PM

We're putting ours into home improvements. But most of it will go into savings also. To heck with stimulating the economy, we're gonna stimulate our retirement ;)

the goddess anna 2-13-2008 @ 8:09PM

One of the comments reminded me of something... we got a statement from MD (where my husband is still a resident and pays state taxes) with the amount of last year's refund. This was to include it as income doing taxes this year. Any money you recieve, be it tax refunds, salary, $15 for cutting your neighbor's lawn, that's all considered income and should be reported. Not all of us do, and it's BS to consider refunds to be income, but that's how it is.

Melissa 2-13-2008 @ 8:41PM

I have to report last year's return, too. I don't get that at all. How can money they over-charged me for be considered taxable income? I was already taxed on that income once - last year.

I'll let them audit me, but I'm not reporting that as income. If they make a stink, I'll sue. That CAN'T be legal, can it?

SKL 2-13-2008 @ 8:55PM

Those of you who are asking why your tax refund is taxable: because you got a deduction for it last year, if you itemized. If you did not itemize last year, don't include it in your income this year.

As for the previous fed rebate, it was an actual rebate, it was just confusing how it was reported.

As far as this year's goes, I am not bothering to check out the details unless I think I might get one . . . .

nancy 2-14-2008 @ 12:36AM

I will use it for half day summer camp for my kids. This could not have come at a better time. My kids will enjoy a lot of activities at camp that I could not provide them at home all summer long.

dee 2-14-2008 @ 2:17AM

I'm buying a crib!

Gia 2-14-2008 @ 7:46AM

So many possiblities. We may be using it on a house, that is if my mom cosigns like she said she was going to. If we find a house that doesn't eat all of our money then we are going to use some for bills and then possible an x-box 360 and a flat screen tv. That would be awsome. But most likely it will get eaten up by the house, the cars, some emergency or put away in the bank.

mamacheryl 2-14-2008 @ 7:58AM

It would be so much fun to do home improvements with it, but I'm using our rebate to help us get out of this credit hole we created for ourselves since I quit my job to become a SAHM.

Cheryl
http://redpens-diapers.blogspot.com
http://skinnymeals.blogspot.com

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