Are Tax Rebate Checks Coming Soon
The latest news on the economy is bad. Apparently, the housing debacle, years of negative savings rates, and a credit crunch thanks to our insatiable appetite for something bigger and better was too much for the bull market. This economic “perfect storm” has effectively wiped out gains earned since March 2007, and has driven the U.S. economy into a recession. Government officials are preparing to infuse the economy with various forms of economic incentives.
Will history repeat itself? After September 11th, and the Bush tax cuts, taxpayers were treated to a mid-summer tax rebate check as a prepayment for the tax decrease implemented by new tax laws. Some are predicting a similar tax rebate check as part of this economic stimulus package. Economists hope this infusion of cash in consumers’ pockets will lead to increased spending that will pull us out of a recession.
Put your tax rebate check to good use by paying down debts. Don’t worry, there will be enough consumers out there spending their rebate checks on frivolous needs. I don’t consider it unpatriotic to use your tax rebate for paying down your debts. In 2001, tax rebates for married, joint income tax filers was $600. Sure, that money could buy a new Xbox 360, or a new recliner for your living room, but knocking out some high-interest credit card debt has more long-term payoff for your personal financial situation. If you are already debt free, consider starting an emergency fund, or investing in a few shares of a discounted stock for your children. How will I know if I’m getting a tax rebate check? While the details haven’t yet been announced, the 2001 tax rebate checks were sent to people who filed taxes in the year 2000, and claimed a minimum amount of earned income ($6,000). In 2001 the checks represented an advanced refund on your 2001 taxes thanks to reduced tax rates. With no additional tax cuts on the immediate horizon it will be interesting to see how this solution can be financed. When and if it is, be prepared to put the money to work for you and resist the temptation to spend it all.
Like this article? Subscribe to Frugal Dad’s RSS feed here, or if you prefer receiving notifications via email you may subscribe to email delivery here.
[…] post by Frugal Living, Saving Money - Frugal Dad This entry is filed under Credit card. You can follow any responses to this entry through the […]
[…] Read the rest of this great post here […]
Economic-stimulus plan gets cool reception…
Wall Street isn’t alone in its lack of enthusiasm for President Bush’s economic-stimulus plan. Some personal-finance bloggers wonder whether it makes sense to give tax rebates to American consumers in hopes that they’ll spend it and boost the econom…
[…] couple days ago I wrote about the possibility of an upcoming tax rebate as part of a broader economic stimulus package. After learning more about the stimulus package, and […]
I love the last line of your post! I just did a post about the 5 worst and 5 best things you could do with your tax rebate.
[…] way, if you haven’t done your taxes yet I would suggest you get a move on - it looks like the upcoming tax rebate checks will be based on your 2007 filing, so the sooner you file the sooner you are eligible for the […]
We turned around and paid off the balance for our wedding reception this summer. It was a big chunk and felt nice to have the money to take care of that big expense!
[…] subject of what to do with these tax rebates has been written about in the personal finance community ad nauseam. So instead of piling on, I […]
[…] together article ideas around those topics. This one recently worked for me as news of a possible economic stimulus package was being kicked around Washington. I started seeing some traffic on a tax related article with […]
[…] my referral page if you are interested). If you don’t have plans for your tax refund, or your tax rebate check, this is a great way to kick-start a savings program. At 3.0% APY (at the time of this article), it […]
i have not got mine yet i was wondering when i will get it