The Economic Stimulus Rebate

[Mr. Bloom]

The President has signed the Economic Stimulus Package and checks will be coming out in the next few months.

So what are you going to do with the money?

;)PS: Whisper your vote. Silver doesn't watch the news, so don't tell her about it, OK?;)

(poll results are not public and multiple choices are allowed)

[Kalidurga]

I would have loved to check that top box, but considering that I've spent the equivalent of a custom all-carbon bike on veterinarian bills over the last few months, I'll be paying off debt.

I still don't quite understand how these rebates help when we've got such a gi-normous deficit, so I'm not sure whether to be grateful for it or not.

[Meg McKilty]

The President has signed the Economic Stimulus Package and checks will be coming out in the next few months.

So what are you going to do with the money?

;)PS: Whisper your vote. Silver doesn't watch the news, so don't tell her about it, OK?;)

(poll results are not public and multiple choices are allowed)

So we're really getting the $600 or $1200 as talked about? I thought the government might BS us around for a while before distributing $5 to each of the masses.

Oh yeah, what I am going to do with it- save it to buy a new bike.

[uforgot]

The last time we got all excited about a rebate, it turns out it was just an ADVANCE on our next year's taxes. So, Mr. Silver, since I'm sure you understand economics much better than I do, is this going to be the same thing or something different? I am also curious how this will help with our enormous debt, also.

[Thorn]

e) Donate it to charity

To avoid this getting bumped to Way Off Topic, I'll skip my political tirade about why these checks are just wrong, wrong, wrong.

Instead, try the lemonade approach and state, when given money I neither expected nor feel is appropriate, I pick out a worthy charity and give it away.

[Crankin]

We are not getting any... we make too much money. Last time, however, we spent the $ on a snow blower.
Personally, I think this is a band aid and a poor excuse for not really attempting to fix the problems we have. I don't need the extra cash, but it is frustrating to see how the pres. thinks this will help. I mean, he has no grasp on what things really cost, anyway.

Last week I asked my sons what they would do with the money. One is going to save it and the other is either going to use it help pay off a credit card bill for car repairs or use it for a vacation.

[NJBikeGal]

A combination of Buying Cycling Stuff and Paying off Debt. Because...I just picked up my new baby from the bike shop yesterday! Now, of course, I have to finish paying him off! :):):):) Ain't he handsome!?!?

[SheFly]

Like Robyn, we won't get any, which is fine with me. I read an article yesterday that said the last time they did this, only some small percentage of people actually spent the $, which is the point... Seems more like a popularity issue than really trying to stimulate the economy.

SheFly

[indysteel]

The good news is that I make enough income that I'm not eligible. I'll take my salary over a $300 rebate. The bad news is that I, too, think the package is ill-advised. But, oddly enough, neither Congress nor the President asked me what I thought. :p

[Tuckervill]

I'm in the same boat as Indy and Robyn....not getting any. I am curious, for my sons sake's, whether it is an advance like last time or not. I haven't heard anything about that, either.

If we were getting one, I'd use it to offset the cost of putting new plaster in the upstairs bath ($2400!!!! :eek:). It would probably mean I would buy the $150 pedestal sink and not the $109 one. lol.

eta: I just checked at IRS.gov.


Stimulus payments will be subject to offset against outstanding tax and non-tax liabilities in the same fashion as regular tax refunds.


What that means, I have no idea.

Karen

[Blueberry]

We'll be getting some small portion (I think) or none because of our income. Haven't done the calculation yet. We're down to the point where we have no "bad" debt, so I would either use it to pay off come of my remaining student loans or save it.

However, as I understand it, it's for 2008. So, if you make more money in 2008 and got the refund anyway, it's forgiven. If you should have gotten more, you get the rest when you file your 2008 taxes.

CA

[GLC1968]

We'll be getting some small portion (I think) or none because of our income. Haven't done the calculation yet. We're down to the point where we have no "bad" debt, so I would either use it to pay off come of my remaining student loans or save it.



Ditto - word for word. But, now that I see it's based on 2008 salary, we probably won't get anything or...we'll have to pay it back?!

How does that work? If you get $ based on your 2007 salary level, but you make more than the 'cut off' in 2008, will you have to give it back? And if so, I want to know this now so that we don't spend it!

[Blueberry]

The article I read said that you would not have to give it back if you made too much in 2008.

By the way - how are the move preparations going?? Are you guys going to have any free time before you move?? Farewell dinner??

CA

[Brandi]

What is the cap? How much do you have to make to get one? Is 150k per couple or 75k per person. It seems that is what I heard. Is that gross income?
All I know is if we get any it is going straight into next years tax. When we get any refunds they always get applied to next years. It just makes sence you know. It bother's me that they send this out and we still have to pay tax on it. Give it to us with no strings attached. Now that would be a refund!

[bmccasland]

If you read the fine print, it is an advance on your 2008 tax return. So I'll either pay off a debt or stick it in the bank, 'cause I don't trust them to not want it back in April 2009.

And I don't understand the economics as to how this will stimulate the economy either. Especially since they use some funny accounting in Washington - there's the US budget and the "war" budget, both sucking out of my pocket, but somehow never appearing together on any spreadsheet. Oy vey. Wish I could get away with deficit spending, can't I just print some money to buy things I NEED??? Like bike stuff.

[indysteel]

The amount you're entitled to receive is based on the 2007 tax year. The caps are based on your adjusted gross income and what you earn and/or your filing status for tax year 2008 is irrelevant.

Here's a link to the relevant section of the law: http://thomas.loc.gov/cgi-bin/query/F?c110:23:./temp/~c1105TWDyA:e2351:

[Possegal]

I'll be doing nothing with it, as I won't be getting one. And I doubt that this will do much to "stimulate the economy" as I don't think the last one did anything to help. In fact, I think they say the last rebate was responsible for large numbers of errors on people's income tax filing. This will likely do the same, but then maybe I'm just a cynic at heart.

If I were getting one, I'd likely pay down some debt. No fun there, but something I need to be doing and any and all help would be welcome.

I hope lots of fun biking stuff gets bought though, so I can live vicariously through hearing about it and seeing pictures. :)

(and yes, like others have said, I'm not really complaining as I'd rather have my salary and not be eligible and I do hope it helps out those that get it, but I'm not hopeful it will do much for the economy in general.)

[tulip]

e) Donate it to charity

To avoid this getting bumped to Way Off Topic, I'll skip my political tirade about why these checks are just wrong, wrong, wrong.

Instead, try the lemonade approach and state, when given money I neither expected nor feel is appropriate, I pick out a worthy charity and give it away.

Last time this happened, I gave my whole $300 over to my local community garden. I may do the same thing this time, but I may not. The divorce has left me a bit in debt, so I may pay some of that off.

[NoNo]

Definitely paying off debt. While I agree with the others here about this being an ill-conceived notion, I'm not about to pass up free money. I'm in a tight spot and every little bit that will help pay off the CC faster is good in my book.

[bruiser]

In all honesty, I don't have any hopes of this improving our economic situation for the long term. I agree that this is just a misguided attempt for a shot in the political popularity contest. I think most people who qualify for the rebate will do the responsible thing and put it towards some debt instead of filling their (too expensive) homes with more junk. What with all of the dire news about rising debt in a bear market, you'd think people would have it in their minds to look out for their finances...


I am fortunate that the only debt I have is from school loans with their ridiculously low interest rates (wahoo!). But then again, I don't really have any assets, either :rolleyes: I am hopefully going to be spending the rebate, in combination with my return and quarterly bonus, on a lovely new bike :D

[Running Mommy]

You know the thing that irks me is that you could see this mess coming three years ago! But everyone just buried their heads in the sand and rode the train as long as they could.
If our great (and great great for that matter) grandparents could see the way we are living today they would be mortified. The spend spend spend and worry about it later mentality of todays society is out of control.
I'm sorry, but WHY people that make 40k a year think they can afford a 400k home with nothing down is beyond me?! I know that I'd never be in an 800k home.... sigh... Ok, I have a customer- rant over.

[Andrea]

Two words:

SRAM Red :D

[Skierchickie]

Ditto to pretty much everything I'm reading here - I really don't think it is going to help many people, and it is just going to drive the country deeper into debt. However, we will use ours :rolleyes:. We're planning on going to Alaska with my parents in the summer, to celebrate their 50th, so it will definitely help out. However, we were going anyway, so we're not changing anything.

[IFjane]

You know the thing that irks me is that you could see this mess coming three years ago! But everyone just buried their heads in the sand and rode the train as long as they could.
If our great (and great great for that matter) grandparents could see the way we are living today they would be mortified. The spend spend spend and worry about it later mentality of todays society is out of control.
I'm sorry, but WHY people that make 40k a year think they can afford a 400k home with nothing down is beyond me?!.

Agreed, RM. Being in a service profession, federally-funded and not popular with any Republican administration, I am STILL making just over 40K a year.....but I am living in my cozy $150K home on the side of a mountain, with no mortgage and loving every minute of it. My soon-to-be-DH had his position eliminated on January 3 (happy new year) and is still looking for a job so our income has been slashed to mine....not a pretty sight even with no "bad" debt (is a 3-year loan on an Element "bad"? :rolleyes:) I will be getting a check and I plan to pay down debt.....and buy bike stuff......and pay for a wedding.....ok, maybe not all three! ;)

[7rider]

I would just be re-stating a lot of what folks have already stated.

So I'll refrain.

However...I couldn't help but notice that the one who started this discussion has not stated what HE would do. Oh, Mr. Silver??????;)

[maillotpois]

Yeah, popularity contest - and in an election year to boot. What a shocker. :rolleyes:

[IFjane]

Yeah, popularity contest - and in an election year to boot. What a shocker. :rolleyes:


I'll take their money (excuse me, MY money) but it won't change the way I plan to vote......:mad:

[BleeckerSt_Girl]

To our current administration:
Yeah sure.....first take all our money, put lots of it in your fat pockets, squander the rest of it really badly and put us, our children, and our grandchildren into massive debt for decades to come. Then mail us a puny pittance of our own money back to us as though it's some grande gifte. Like we're supposed to jump up and down in gratitude? It won't do a damn thing to stop the coming major recession you have gifted us all with on your merry and prosperous way out the door. You make me sick.

[Aggie_Ama]

Using it to take a really awesome trip to New Mexico for the Enchanted Circle Century. I don't get how this will help but I don't get much EITHER party does. :confused:

The home rant makes me laugh... We bought our house for a little under $140k, with payments we are quite comfortable with. The realtor was trying to encourage us to buy the $200k plus homes on the other side of our neighborhood. We could have qualified, of course we would be eating ramen for years to come until the property taxes forced us to move. :rolleyes: And people are shocked at the housing mess? I was 25 when we bought this house, many of my peers would have bought the biggest house the could and not thought about the mortgage. Okay back to the free money some of us are getting.

[Zen]

However...I couldn't help but notice that the one who started this discussion has not stated what HE would do. Oh, Mr. Silver??????;)

We're waiting....

[Tuckervill]

Um, his dad died. I'm sure he's busy.

Karen

[Zen]

My mom died last Tuesday. life goes on.

[Blueberry]

My mom died last Tuesday. life goes on.

I'm terribly sorry about your Mom.

Otherwise, I'm not quite sure how to take this.:confused::confused::confused:

[BleeckerSt_Girl]

Zen, I'm very sorry to hear you lost your mother.

[redrhodie]

Zen, I'm sorry for your loss.

[Geonz]

So now I am curious. What's the proportion of people who arent' getting it who think it's a bad idea vs. those who are?

(I think it's stupid cheesy politics that completely avoids the problems that led to these circumstances. I would be getting something.)

I am remembering some fo those grand generalizations of history... such as "the cure for a recession is a war." Welp, that's not going to work here.

So, that makes me think - but waht *is* it a bout a war that does that turnaround thing? Is it just the economics of having to produce stuff? How important is it that the people are united and feeling a sense of solidarity and community... and, therefore, if we could rally behind something else, and somehow get dem capitalists to decide to market something besides death...

I'm waiting on a couple of sort of windfalls - a reimbursement for work-related trip expenses and getting an abandoned 1K CD out of escheat in Virginia. That can pay down a chunk of my mortgage and land that Dahon in the back seat of my Xtracycle. Oh, and a mattress... my back says please, a mattress...

[nonsmoker3]

My mom died last Tuesday. life goes on.

??? Wow. That is so wrong in so many ways.:confused::confused:

[Mr. Bloom]

My mom died last Tuesday. life goes on.

Zen, I'm really sorry about your mom.

The two certainties in life:

Death & Taxes

and we're covering them both in one post;)

And you're right...life goes on.

So, the answer to what I'll do is: "I don't know". The current state of the economy has caused me to take note of the excesses in our lives and the need to be thrifty enough to enable generosity at will.

This isn't a new revelation...it's just a return to something I came to understand a long time ago.

But, using this little piece of the world as an example...it's not going to have the desired effect...because most of us are going to save it or pay down debt...

[Blueberry]

Mr. Silver-

As usual, you have provided such a thoughtful response, with incredible perspective. We, too, have been re-assessing and trying to make sure we're doing what we want to and what we can with the funds available to us. It's a process everyone should go through, I think, on a regular basis.

Thank you for continuing to be a part of TE - the world is definitely a better place with the Silvers in it!

CA

[Skierchickie]

Wow Zen and Mr. Silver - I am so very sorry to hear about your losses. You are both in my thoughts. I don't know what else to say.

[Running Mommy]

Mr. Silver-

As usual, you have provided such a thoughtful response, with incredible perspective. We, too, have been re-assessing and trying to make sure we're doing what we want to and what we can with the funds available to us. It's a process everyone should go through, I think, on a regular basis.

Thank you for continuing to be a part of TE - the world is definitely a better place with the Silvers in it!

CA


HERE HERE!!! I love the silvers! I'm still waiting for the day we can rendezvous on the redneck riviera for a proper southern cocktail! :D

[uforgot]

If, as bmccasland says, it is an advance like last time, then all it means is that we are getting our tax refunds back a few months early, but I guess it makes them look like political heroes just in time for the election. Last time, most people did not understand this little catch, and when they went to have their taxes figured, SURPRISE!!! I do my own taxes and understood this last time, and there actually is a place where they ask the amount of your refund, but my principal argued with me. Said it was just a "gift". He was one of the ones whose taxes were held up because he figured it incorrectly as another poster mentioned.

So, in January 2009, my son on the USS Eisenhower will be shipped back to the middle east (yeah, he has already been told) and I will get $600 less on my tax refund. Guess how I'm voting????

[Mr. Bloom]

I don't recall it being as you describe last time...and I don't think it's as you fear this time


I will get $600 less on my tax refund.

But, keep in mind: The use of the word refund is misleading. You are either "over withheld" (this is when you get money back) or "under withheld" (this is when you owe money).

Based on your situation (income, deductions, etc), your tax is what it is. This "stimulus package" is effectively a retroactive reduction of last year's tax rates (I think:confused:))

Now, to your concern: what if, because of gov't spending, they need to raise taxes this year (meaning you're "under withheld" when filing for '08)...then that's a different issue entirely...but I don't think they're giving you something now and intending to take it back next year.

[Zen]

.
it's not going to have the desired effect...because most of us are going to save it or pay down debt...

True that.
The part I really don't understand is why this went off without a hitch but that's not really the point of the post.

[emily_in_nc]

Question: if I am a member of a couple, but the only one who works, do I qualify for the check if I make < $150K or only if I make < $75K? And which size check? Based on a single or a couple (no kids)? I admit I haven't read up on this at all, just heard a couple quickie reports on the news, so right now I'm unsure of whether we'll be getting a check or not!

I do know, unfortunately, that we owe about $1700 in taxes due to cashing in some investments to purchase our sailboat, so I'm hoping I do qualify for the stimulus check to help offset that.

Emily the Ignorant

[Blueberry]

Emily-

I *think* if you file jointly, you get the 150 limit, but I'm not sure:confused::confused:

CA

[emily_in_nc]

Emily- I *think* if you file jointly, you get the 150 limit, but I'm not sure:confused::confused:

That's what I am hoping! It would seem to make sense since I am the sole breadwinner for two. I make more than the cut-off for singles, but far less than the couple cut-off. I could certainly use it (to help pay down our home equity loan, not for new purchases!)

Emily