@Tande

It goes into the national debt which we all are paying back with our income taxes. All U.S. dollars are borrowed from the federal reserve with interest. And yes you and everyone else will be paying it back... it's what we live for apparently.

I don't think that they're going to like that my rebate will be going towards my credit card.

@hi: No, it isn't.
You can't draw a parallel to a bank or check cashing place because it isn't the same thing at all. Just because both might use the word advance doesn't mean they are the same kind of advance.

This is an advance on a credit that you would take when you file in 2008. I'm not paying anything back or losing anything with it. Its win win. If you don't qualify in 2008 you still get the money in 2007 don't have to "pay it back" in 2008. If you qualify for more in 2008 you'll actually get the additional money.

I was thinking HDTV for mine too.

I went and looked the other day though and couldn't really find one that had everything I wanted that was a name I'd trust. We'll see what they've got to offer in May.

@ HUMPHRMI - hence the word "refund".

Try... hence the word "tax credit advance".

You can get an advance from the bank or a check cashing place. Do you have to pay those back? Yes you do. Pay attention. People will owe money on this next year as it is borrowed money.

What would I do if I had $600? I reckon I'd do two girls at the same time....

There goes their entire plan.

I've already done my 2007 taxes, which I already got my refund.

I'll be putting my rebate check in the same savings account I put the 2007 federal and state tax refunds.

How do I ensure I get my check at my new residence?

Sorry, Federal Gov't., but I will be paying down debt with mine.

My wife is going on a "girlcation" with my sister for a few days with her half, and I'm using my half (and the remains from our Federal tax rebate after I pay off my credit card) to insulate and finish our attic, and maybe buy new front door too (Hello energy credit!).

Sorry, had a Futurama flashback.

So, it's not an actual tax cut, like the $300 we got a few years ago? It's just an advance on the taxes we were going to pay anyway? That's even more reason to use it to pay down debt or put in the bank. The government's going to get it back sooner or later.

this will make my truck loan 2 months shorter.

woo.

Me, I'm getting $2100. $1K for baby's 529 and the rest in emergency fund. Wife's student loan is 0% interest, so no hurry in paying that off.

I'm probably going to get my truck repainted. I'd planned on doing it anyway. The 600 crows will be the deposit on the job.

The only "advance" part of it is that the rebate (NOT refund) comes off next year's taxes, but you get the cash this year.

So if I put mine in my Health Savings Account, would that be something like "investing" (actually paying less tax?) I get money back this year and can then deduct it next year from my income? It would go back into the economy eventually through medical costs. Yeah, this should be a fun tax year!

Try again please.

I got this off the internets....

Most workers - those who will pay at least $600 in federal taxes for 2007 - would receive a $600 rebate if they filed individually and $1,200 if they filed a joint return. Unlike a similar stimulus program in 2001, the money is an outright payment, not an advance or offset against the next year's tax filing.

So who is right?

Real Absinthe is now available in the US. Look up Lucid. I bought some last week.

Who says Bush doesn't have forward-thinking ideas? Maybe next year we can borrow from the 2009 taxes, and then in 2009 we can borrow from 2010 AND 2011!

The last time they gave a stimulus like this, I had to claim it on taxes as income. Whether they say it is non-taxable or not, I had to claim it as "income" just like I have to declare my state tax refund as "income" when I do the Schedule A. I'm self-employed and thankfully my accountant had warned me in advance to set aside the usual amount to cover taxes on it.

I plan to pay off the roof I had to fix last year after a pseudo tornado hit my town. (I say pseudo tornado because while people got pictures of the funnel cloud, the verdict was that it couldn't have possibly been a tornado in Vermont, so it must have been just strong winds that tore off sections of roofing and uprooted trees.)

someone tell me if I have this right, please? So let's say I don't owe any money and in fact am getting money back from the govt on taxes this year, a "refund" if you will. Does this mean I get exactly $300 and not a penny more?

Hmmmmmm.....You know how you enter into a contract just by endorsing a check? I wonder what would happen to your taxes for 2008 or 2009 if you never endorsed the check, and never took the money. Makes me really curious. In case this mess. shows up twice, I hit submit and it disappeared, so I typed it again.

Hmmmmmmm.......you know how you enter into a contract the second you sign a check? I wonder what would happen if you just simply did NOT endorse the check, and never took the money. That's got me curious.

@DROPBEARCHARLIE
Mine are going toward the $600 "theives kit" to steal the $10,000 cigar.

Well, I guess nothing is "free" is it? I wish it was enough to buy a ticket to paradise, but not in this day and age... Maybe a new shower curtain and bedding.

I just moved to MA and they're demanding an excise tax for my car. I'd be angry if the irony didn't tickle me so.

Except I do remember my last rebate check. I used it towards a car that I still own.

As for me, I dunno. Maybe a used PS3 if Blu-Ray wins out. I'll probably save the rest.

This is interesting to know. I guess it truly is a "pay now or pay later" situation. More optimistically, I guess it beats a payday advance loan.

Yeah, but then another possibly Democratic administration will be in power so everyone will blame them. And, as they hope, re-elect a Republican to "fix" things in 2012.

I will spend it on wasteful things. In reality it will free up my regular $ to spend on wasteful things. But the difference is the same. The $ will just be used to purchase stuff I don't really need or want.

Oh sure I, like others, will claim I invested it. Others will claim they bought useful, really needed things.

But in reality the $ will be spent on wasteful things.

Oh what fun it is spend in the USA.

Agh, didn't mean to submit.
I'm just playing, I don't gamble.
I might get a PS3.

$600 on Green "00".

When President Bush's plan came out, this is was the first thing that came to mind. When I read this article to my wife and told my West Wing story she replied "maybe that's where he got the idea from..."

I'm going to stick most if not all of it in savings.

There is a leather bound bible that I want and rather than waiting for it to go on sale I may go ahead and pay the full price instead.

i could care less about weather or not this will help the economy. i know for a fact it will help ME though!

AN HD TV BABY!

As far as I'm concerned, as a consumer, my only debts are to Visa and my mortgage company... not to society.

The best I can figure, between our State and Federal tax refunds and this "rebate" we will be getting back what equals 1/4 of our total income for the ENTIRE year in a short period of time. Oh yeah!

Other than taking a short weekend vacation with the kids and buying them each a new matress set the REST is going into our "Emergency Fund".

If Bush REALLY wants to stimulate the economy he needs to get all his oil company executives buddies to spend their 20 Million $$$$ yearly bonuses!

At least now I know I get $600, but I'm still not sure how it affects me since I'll owe taxes this year and probably will next year, too.

@DropBearCharlie: I'm interested to see what happens to you after the 200th cup. Futurama references always get a +1 from me.

I was just going to toss it in the general fund and use it for groceries and utility bills. That's kind of what we do with any extra money that comes our way -- we don't maintain an "emergency fund," we just make sure that the liquid cash reserves are robust. Tax refund's going in there too. Maybe I'll buy a used DVD from Amazon.

I'll probably change it into tens, then roll it up with a rubber band.

@ideagirl:
You aren't going to have to pay it back. Congress effectively cut your 2008 taxes by say $600. They are giving you your money now rather than have you wait a year for it when you file your 2008 taxes (April 15, 2009).

I'm thinking of buying a high risk mortgage company. Should be worth about $1200 by June!

Let's recap:

1. Congress is instituting a one time tax credit for the 2008 tax year. This will be a separate line on your 2008 tax return, kind of like the goofy telephone tax credit in 2006.

2. This is not an 'advance refund' on your 2008 taxes. The tax credit is 'new' money.

3. The Consumerist article needs to be modified...the AGI income number is correct, but that's for a SINGLE taxpayer. If you're MFJ (married filing jointly) the adjusted gross income limit doubles.

4. While everyone enjoys extra money, stuff like this increases the deficit and just makes our economy that much worse. Remember that tax credit you got in 2002? Neither do I. It did NOTHING.

5. I'm using my rebate to pay off debt. Any time credit card companies can make less money off me, that's a good thing :).

I'm just wondering, I am actually at a -3% tax rate, So do I get the monies? Next year (this year really) I will actually be paying some taxes. Maybe.

@youbastid:

Dont forget to get into the "infragard" while you can. SO you can indescrimiately kill anyone you deem a "threat" & never be held accountable when martial law breaks out.

[progressive.org]

@ClayS: Thanks for clarifying that. However, it seems to me that, if I have to pay it back next year, then it is still a loan. The last time they did this we had to pay it back on the next tax filing. I don't want them forcing a loan on me, there should be an opt-out or something.

It doesn't matter if its a Republican or a Democrat. Giving America a Payday Loan is only a band-aid. America needs something different if we want a bright future.

As long as an American company (that is, a company listed on an American stock market, which is a lot broader than you might think) reports profits, the economy benefits. It doesn't really matter who made the crap you purchase.

Of course, if you bought the gun first, you could just steal everything else, but that really wouldn't be stimulating the economy :oP

;)

2008's expected bill for Iraq: $156 BILLION.

With a current estimated population of 301,139,947 that's $518.03 from every man, woman and child for this year alone.

Current National Debt: $9.1 TRILLION.

That's $30,218.51 each.

Some of those folks aren't earning money, though.

If you want to weed it down to the population between 15 - 64, that's 202,360,787 people who owe $770.90 each for Iraq and $44,969.19 for the National Debt.

@savdavid: Bush gave us the "Do Not Call" list. That's the only positive thing I'll give him credit for.

I'm putting my tax rebate into my IRA. That's my "fuck you" to the Federal government for pissing away social security funds on the Iraq war.

In 2008, my tax liability under the stimulus plan would be only $400 (1000 taxes - 600 credit), so I would be due a refund of $1600. However, under the stimulus plan, $600 of the $1600 will be paid this year. So next year, my refund will be $1000 (1600-600). This does not change the fact that my tax liability for 2008 is still only $400 (or $600 less than this year).

Maybe that helps.

@tootingbec: Buying crap made in China allows the Chinese to buy cars and ratchet up manufacturing, which increases demand on world energy markets, which increases the cost of crude oil, which allows Mobil/Exxon to make record multi-billion dollar profits, which allows rich investors to buy another big SUV and fill it with lots of Chinese crap from Wal-Mart...thus completing the circle of life

Depending on the size of my tax return i want to pay off either my girlfriends car or her credit cards (we live together), I qualify for EIC so I should have enough to do one or the other with my federal return and combining my state and her federal we should have enough to pay off both.

If we dont the money i get this summer will go to pay off one or the other.

If we have both paid off by then, then the money (both of our checks) will go towards a down payment on a new car for me. We should get about combined $1200 or more since I have a kid.

Which I guess would be what Bush wants...of course current debt is more important so that gets priority, even more so with a recession looming over everyones head. I'd rather go into it debt free then go into it having debt and then spending more money on a car and going deeper into dept... I dont truly need the car. My current one should be fine for another couple years with some minor repair work.

@Little Miss Moneybags:

Prettymuch in the same boat here (except I know I will be getting $600 instead of $300). I pay every year come tax time as well.

How do I get this money from Uncle Sam and into my own grubby little hands? Will this be included in my tax return? Is it sent separately? Have I overlooked this, or is it so impossibly obvious that I missed it?

I'm going to buy war bonds with mine!

i just filed my taxes this week and i owe like $1500. how does this work for me? do i get a check coming? do i owe less? how can i find out? any help would be greatly appreciated.

paying off debt and setting some aside for an emergency slush fund.

I will then run up the balances to past the limit and default on them.

TAKE THAT ECONOMIC STIMULUS PLAN, HERE IS A MICRO CC MELTDOWN.

Seriously though I'll probably use it to renew my insurance on my bike or some other mundane and boring thing.

Interesting wording there. Definitely something to help improve the work force for next year. I don't qualify this year for takes (recent graduate with sub 3k income) but with an expectation for a job next year, this is encouraging.

I don't understand how giving us free money to waste on B.S consumer stuff or to help make a dent in mistake-debt or medical debt is really going to help the economy. wow, 600 dollars. spaying one cat and having the other treated for a mysterious ailment was 600 dollars. no 'consumer anything' there.

what a confusing post!this has nothing to do with 08 taxes except getting it into next years tax code..make everything fucking hard for gods sake...spend the money and shut up!!

What's I'm not sure about is if I'm getting $300 or $600. I probably won't have to pay taxes this year (maybe about $50 or so, damn me for not saving enough of my 1099 work), so does that mean I get $300? (scratches head)

ugh! So my idea of putting it in the bank was a good idea. Least I'll earn a tad bit of interest on it before tax time.

I will be putting mine into my savings account, where it will either be used to pad my emergency account or to pay for a trip somewhere (probably from NY to FL to visit my family).

@ideagirl:

It actually isn't an advance on your 2008 "refund". It is an advance on your 2008 tax credit that was just instituted. Rather than having you wait a year (until after the 2008 tax year), they are giving it to you now so it will benefit you and the economy sooner. Whether this will be enough to head off or minimize a potential recession, I don't really know.

Well, to all of those nay sayers, I say 'bite me.' This check goes right into savings, which is where next year's tax refund-a refund which will now be $1800 smaller-would have gone.

I don't want an advance on my 2008 "refund." Every year I have to do a major song and dance just to get a "refund." This will just make it that much harder. And if I did want to borrow money, it wouldn't be from the govt. So this will go into a money market account until I do our 2008 taxes, just in case I have to give it back.

ROAD TRIP!!!

"Saving or paying back student loans is not what they have in mind."

Not really true. Saving the rebate, by putting it into a bank or equity investments serves to boost the economy as well. Repaying debt to a lender makes that amount of capital available to others for business expansion, etc.

Your taxes don't go up at all as a result of this credit.

Use this paycheck for next month's rent or to get drunk right now...?

Side note: I was bummed when it came time to pay the rent. By the government's logic, however, I was doing the right thing. Isn't it fun to be 18 and irresponsible, but also in charge of 400 million Americans?

I'm blowing mine on drugs and gambling.

Mine is going towards my moving back to Seattle from the Midwest. I plan to travel starting May 31st, so the return comes just in time! Will go right back into the economy, since moves are expensive!

I haven;'t decided, but I will not spend it on consumables. There's a piece of land near my fiance's mom's place that I think I can pick up for the overdue taxes. Failing that, I'll probably pick up some silver coins.

I will be spending mine on illegal, non-taxable drugs mostly. :D

Well, since its not actually free money, just an advance on money they will owe me anyway...I'll put it in savings for my down payment on the Toyota Pious I want

Boston, here I come!