The Scoop on the Tax Rebate Checks
January 24, 2008 – 2:42 pmWell, the government has hammered out the deal for their economic stimulus plan. So what does this mean for you and me?
Well, in the short term tax rebates will be sent out to millions of Americans who had earned income of $3,000 or more. I’m not sure what tax year they will use this information from, but I’m going to guess 2006, maybe 2007 (although that is hard to do since there are Americans that don’t file their returns by April 15th).
Not everyone will get the tax rebate. Only those that have incomes up to:
$75,000 for single
$150,000 for married couples
will receive the tax rebate.
How much?
$600 per individual
$1,200 per couple
EXCEPT those that had earned income of $3,000 or more but did not pay any federal income tax will receive reduced amounts of:
$300 per individual
$600 per couple.
QUICK UPDATE: I just finished watching a couple of government officials talk about the plan in greater detail. Treasury Secretary Henry Paulson mentioned an additional $300 per child for those that have children. He also mentioned something about amounts being phased out after the income cap of $75,000 for individuals and $150,000 for married couples- so those with higher incomes would get a partial amount. House Speaker Nancy Pelosi chimed in that the exact details of the plan will come at a later date. I guess we’ll know what we are getting when the check comes in the mail! 
When will the checks be mailed out?
By June.
Anything else?
Yep, there are a whole package of incentives that will be provided to businesses. But I haven’t been paying much attention to those so I don’t know the specifics on them.
The cost?
1% of GDP (Gross Domestic Product) or approximately $150 BILLION. I still have my doubts about the whole plan but I’m not an economist so I can’t really analyze it from an educated standpoint; other than that is a WHOLE lot of money!
What to do with the tax rebate?
I asked before what everyone was going to do with their tax rebate. I thought we would put ours on debt, which we may still if the check comes in the next two months. But more than likely by the time it comes we will be debt-free so we’ll put it towards our fully-funded emergency fund or house fund. I really like what Lynnae had to say about how she would use hers:
I’d pay off my Citibank card and close the account. Then I’d take $50 to take my family out to dinner and celebrate.
I’d like to take a small portion of the check and do something similar; take the family out for some fun or for a yummy dinner at a locally owned restaurant (I actually have just the Italian place in mind!)
16 Responses to “The Scoop on the Tax Rebate Checks”
Great update. So does that $300/child come in addition to the amount (I assume)?
Is it an automatic thing or do you have to file for it (i.e. like taxes)?
By Randall on Jan 24, 2008
Randall,
I’m assuming the $300 per child is in addition to the amount? For example we would get $1200 for couple, plus an additional $900 for our 3 kids, making $2100.
Hopefully they’ll be a little more clear and maybe give an example scenario of how much a typical family of four might get.
It’s automatic.
By Momof3 on Jan 24, 2008
Thanks for the consolidated update. Very helpful.
By Single Ma on Jan 24, 2008
seems to me Bush did something like this back when he first took office and according to lay in my community the very poor got nada.
By maggietaxcollector on Jan 25, 2008
what about the seniors who is on fixed income. we pay taxes on fuel and all other things too. we really need help too…
By raymondritchie on Jan 25, 2008
Raymondritchie,
Good question. I really don’t know much about social security, is it considered taxed income? If seniors make at least $3,000 a year they should get a tax rebate too!
By Momof3 on Jan 25, 2008
Thanks for the straight forward post, finally I am understanding how this is going to work. Going to use it to pay down some debt!
By Kyle @ Rather-Be-Shopping.com on Jan 25, 2008
does anyone know what tax year will be used yet?
By mgambles on Feb 1, 2008
If the amount we recieve will come off of our tax refund in 2009 (per 2008 taxes), it may make us having to owe next year. Does anyone know if we HAVE TO take the check when it comes in June? I would rather wait and get it in 2009….thanks!
By heavanintn on Feb 8, 2008
No no no. You don’t want to wait till next year to get it. But I share your concern about whether this will mean we’ll just pay more taxes next year. Take the money now and get the best interest rate you can. It’s a loan to you and you can at least earn some interest!
By takeitnow on Feb 8, 2008
So, those of us married couples that do not make over $150,000 will not get a rebate check?
By April on Feb 14, 2008
I am little confused? Whne i got my paperwork on my tax income, i noticed that i m getting lot more back than last year because i have a baby but i dont make much. anyway, is the rebate included with the tax income refund? or is it separate? if so, Im gonna spend it on a car!
By Lindsey on Feb 20, 2008
I AM CURIOUS!!ABOUT WHAT OTHER PEOPLE ARE SAYING DOES THE REBATE COME FROM OUR TAXES IN 2009??? 2008 TAXES
By BUTCHAC on Feb 29, 2008
my parents ,had ,7 kids,way back,and from then till now ,still they,always,had to pay at tax time.they both worked, and took care of us .wehad the neighborhood playyard,and every year us kids and our parents,had a m.d. carnival,.muscular distryfree,and we all got awards from,Jerry loiuis,but my family struggled,financially,.no child credit like these days.i,cant ,and parents canot believe how much families ,get per kid at tax time they,never, with7 kids got anything except,to pay, gov.tax money look ,at this rebate there ready, to give 300.00 to kids -and compleatly abandoning,the disabled and elderly,when these are the people that have already paid enough, taxes,or did fight in a war ,what did the children do,yes some are ill,and disabled otherly ,otherwise help out the seniors, and disabled,i think the elderly get forgotten,in senior apartments and houseing complexes.
By zana on Apr 9, 2008
My last two numbers of my Social Security are 26. I would like to have my rebate check sent directly to my bank instead of having my check mailed to me. Is that possible and how can I have that done? Thank you.
Earl Long
By Earl Long on Apr 19, 2008