It looks like the President and various members of Congress have agreed to the details of a new economic stimulus plan.
For more information about the plan, read this article from the NY Times.
Basically -
If you made $3000 in 2007 (or more) – you should receive a rebate check of $300 (or more).
If you are marred (and have kids), your check should be between $600 – $1200.
When I receive my check, I’m going to deposit it into my non-retirement savings (and forget about it!).
What will you do with your check? Are you going to use it for debt reduction? How about building up your emergency fund? Or, will you use it to buy something nice for your family? What do you have in mind?
The details surrounding the plan are still a little ‘fuzzy’. It will be interesting to see how things work out. I wonder how long it will take for this plan to actually work its way to the president’s desk?
By the way, this article from Yahoo Finance seems to indicate that families with kids could receive MORE than $1200 dollars. Read the article. Is that what it is saying to you? If so, my family could conceivably receive a check for $2100!?!
All of this is just a short term fix. And truth be told, it has been happening over past 3 decades. Reagan and Clinton have just as much blame as the current administration. This is an interesting perspective on this(the midas touch)
I will put it in the bank and make my next estimated tax payment with it.
This is little more than a payday loan. I remember a line on my tax return the last time they did this, asking how much you received in rebate, and then having to add it back to what you owe. Rebates are when you pay for something and then you apply to get part of the purchase price back. You get
to keep the rebated funds. You don’t get to keep the ‘rebate’ from the
government.
I have read the “rebate” checks won’t arrive until June, so by that time I will be in “Baby Step 3″ and building up my full emergency fund. Probably not what the government has in mind LOL but then again I don’t understand this theory of “spending our way out of recession” either.
If we get one (I’m not positive I’m eligible) we’ll probably put it into our savings until after we’ve finished our taxes. Once that’s done, it’ll go towards paying off the car.
It’s going right into the bank (maybe we’ll keep out enough to go to a little local place for dinner). But it’s all going toward building up a nice solid emergency fund. I don’t think these checks will take us back to where we were – and we may be in for a bit of a long haul until the economy rebounds.
I’ll be putting in my higher interest earning saving account and saving it for a family trip to Germany that we are planning for 2010!
That’s how I read it too, people with kids would get more based on # of kids — I plan on paying down debt and banking the seeds of an emergency fund.
Not sure if we will get more than $300 or so but we will add it to our housedownpayment fund. Since it is at least two years out till we are buying a house it will be a long while before it hits the economy.
I wonder if we do direct deposit for our tax refunds if they will use the same info to direct deposit our refund check. From what I understand its a lot cheaper for them to do that the issue a check.
I will use my tax rebate to pay off our HELOC. There will be no spending here in my house.
debt reduction debt reduction debt reduction
NCN, I think you;d get $1800? I don’t think they’re going to count your baby on the way for a rebate in last year’s taxes.
Sorry, I am another one that won’t be helping to spur the economy by spending. I will more than likely be banking whatever amount I get.
Probably pay off debt. In a weird way that will help the economy by giving the credit card company some money to lend out to some other person to buy something. How’s that for a twisted way of looking at things?
It’s going straight into the Roth.
I also understood the information to say $1200 for a married couple plus $300 per child. If that is truly the case we could be looking at a “rebate” of $2400. THIS money – whatever the final amount- will be going straight to chase to continue paying off the last of the cc debt. I was already anticipating being debt free from everything but the mortgage by October. The rebate/incentive/whatever will help us get there even sooner. SO for us – no new money will be going back into the economy. But there will be one less cc slave in America– and that is an economic stimulus plan that I can respect.
I’ll be paying off debt. Its time to kick the debt out so that my personal finances can be truly stimulated – not with one time governmental grants
I’ll be paying enough in taxes to pay them back in short order.
Mine will be going directly towards debt reduction – might help stimulate future economy circa 2010. Maybe.
Depending on when the check arrives, it will either be going towards our fully funded emergency fund or towards saving to converting our garage into a master bedroom suite.
My $1800 (since I have two kids) will be used to buy a new 42″ wide screen LCD HDTV and XBox360. I’m doing my part to help the economy! My CC debt will be payed off this month (woot!). I have $2000 in my emergency fund today and another $3000 on the way from my tax refund (stupid me forgot to re-adjust my withholding after the kids were born). Since I’ll have ~$5K for emergencies, that $1800 is a little present to me and the wife for being such good savers and debt payers!
I wish I could say I’ll do the smart thing, but I wont.
Honestly , I’ll probably buy something shiny with my 300 or whatever crumbs come my way.
I was thinking a downpayment on a new 2008 Ford SUV….
or more likely my 2008 IRA.
Nothing, I make just too much as a single person to get one. I thought I may get a smaller amount but you get nothing if you are single and earn over $87,000.
My wife and I will not be getting a rebate from the government – so we plan not to spend a dime for 2008 except for the basic, not go to out to dinner, theater, etc. Only our Government would come up with we know you all are in debt, foreclosures higher than ever, credit card debt over the top, but lets encourage our citizens to spend until they die – some other tax payer will pay for it
I Would buy as many 1965 or older silver dollars as i could.
Actually I might spend it. By June I will be hurting for new work clothes since my new job requires a bit nicer than tshirt and jeans. Not saying I’d spend all of it that way but I would rather spend it on clothes then potentially charge the clothes then pay it off with the tax rebate.
I did not make 3000.00 but i file my taxes and claimed my two boys who i take care of. Do I get the 300.00 a piece for them or do I still not qualify?
I plan to use it to make car repairs and pay the government $700 I owe them
So . . . one hand washes the other . . . by the way – is it not expected until May 2008? I surely would hope it to be sooner!!
will we get a stimulus check in 2009 like we did in 2008.