Posted on 04/25/2008 7:57:28 PM PDT by 2ndDivisionVet
President Bush said tax rebates will start going out Monday, earlier than previously announced, and should help Americans cope with rising gasoline and food prices, as well as aid a slumping economy.
Democrats said they were glad the rebate checks were about to go out, but suggested that multinational oil companies were not among the businesses the stimulus package was originally designed to help.
"Starting Monday, the effects of the stimulus will begin to reach millions of households across our country," Bush said Friday in remarks on the South Lawn of the White House.
Those first rebates will be directly deposited into people's bank accounts. The Internal Revenue Service had been saying direct deposits wouldn't start until next Friday. Bush said paper checks would begin going out on May 9, a week earlier than previously announced.
The complete disbursement schedule is as follows, based on the last two digits of an individual's social security number:
Direct Deposit
SSN Disbursement Date
00-20 May 2
21-75 May 9
76-99 May 16
Paper Check
SSN Disbursement Date
00-09 May 16
10-18 May 23
19-25 May 30
26-38 June 6
39-51 June 13
52-63 June 20
64-75 June 27
76-87 July 4
88-99 July 11
"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown," Bush said.
Bush's emphasis on fuel and food prices differed from other comments he's made since signing the economic stimulus legislation, intended to aid the economy by boosting overall consumer spending -- which accounts for roughly two-thirds of the nation's economic activity.
Bush has suggested the rebates could trigger a spending spree. "When the money reaches the American people, we expect they will use it to boost consumer spending," he said last month.
By saying expressly that people could use these one-time checks to pay for such necessities as food and gas, Bush underscored the deepening challenges facing the economy.
Democrats were quick to pick up on the change of focus.
"It's galling to think that taxpayers' stimulus checks will be lining the pockets of OPEC. The sad truth is that the average American family will spend almost their entire stimulus check on higher gas prices this year," said Sen. Charles Schumer, D-N.Y., chairman of the Joint Economic Committee of Congress.
OPEC is the Organization of Petroleum Exporting Countries.
"Unless the administration gets OPEC to increase oil supply, American consumers are going to be in for a scorching summer of $4 gasoline with no relief in sight," Schumer said.
House Speaker Nancy Pelosi, D-Calif., agreed that people "need this rebate to cope with the rising cost of gas and groceries." She said that, while the rebates would help to get the economy moving, there was a need for a second stimulus package "and we have begun some conversation with the administration and Republicans."
As he had earlier in the week, Bush used the word "slowdown" to describe the state of the economy. He has denied that the nation is in a recession, although many economists say it is.
"It's obvious our economy is in a slowdown. But, fortunately, we recognized the signs early and took action," Bush said.
The rebates -- up to $600 for an individual, $1,200 for a couple and an additional $300 for each dependent child -- are the centerpiece of the government's $168 billion stimulus package, enacted in February. Roughly 130 million households are expected to get them.
Bush made the comments before boarding his helicopter at the start of a day trip to Connecticut.
People must file a tax return for their 2007 income to be eligible for a rebate check.
The IRS now says all checks for those who filed tax returns on time are scheduled to be deposited or mailed by July 11.
The economy -- burdened by the collapse of home prices, a financial and credit crisis, and now rising energy and food prices -- grew at an anemic 0.6 percent in the final three months of last year and is believed to have gotten even weaker in the first three months of this year.
The government will report on the first quarter's performance next week.
With the economy faltering, the nation's unemployment rate has climbed to 5.1 percent, the highest since September 2005, when it suffered from the devastating blows of the Gulf Coast hurricanes. Job losses in the first three months of this year neared the quarter-million mark.
Foreclosures have surged to record highs and financial companies have taken multibillion losses on mortgage investments that soured. The situation has sent a tremor through Wall Street and has sent the administration, Congress and presidential contenders looking for ways to provide relief.
Also:
IRS Warns of New E-Mail and Telephone Scams Using the IRS Name; Advance Payment Scams Starting
Updated April 21, 2008
Some people have received phone calls about the economic stimulus payments, in which the caller impersonates an IRS employee. The caller asks the taxpayer for their Social Security and bank account numbers, claiming that the IRS needs the information to complete the processing of the taxayer’s payment. In reality, the IRS uses the information contained on the taxpayer's tax return to process stimulus payments, rather than contacting taxpayers by phone or e-mail.
An e-mail claiming to come from the IRS about the “2008 Economic Stimulus Refund” tells recipients to click on a link to fill out a form, apparently for direct deposit of the payment into their bank account. This appears to be an identity theft scheme to obtain recipients’ personal and financial information so the scammers can clean out their victims’ financial accounts. In reality, taxpayers do not have to fill out a separate form to get a stimulus payment or have it directly deposited; all they had to do was file a tax return and provide direct deposit information on the return.
We’ll be saving most of ours.
Although we could use a new............
I’ll take it. I think we’ll get around 1k, and its going right into the money market where I’m saving up for my dream house. If they’re gonna waste the money anyway, at least I’m getting a little of it.
We are (in the process of) paying everything off and saving/investing money.
Unfortunately, I’m not sure what’s the best place to invest.
“My brother asks: can one file their 2007 taxes and receive a check even if one did not file 2006, and/or owe the IRS taxes?”
I would’nt risk it. Tell him to file the taxes, he should anyway, and if he can’t afford the bill, make a payment plan or retain a tax attorney and get an offer in compromise to reduce the amount. I went through this with several people I know, trust me, the penalties and interest won’t be nearly as painful to deal with as the IRS coming after him. The IRS are actually very easy to deal with for back taxes, just file as you normally would have, and they’ll send you an adjusted bill for the rest - it’s when you don’t file and they come after you is when it gets nasty.
And, if he owes money for past years, the stimulus check is applied to that debt, or has to be. It’s on the IRS page, in the Q&A about the check - if you owe and/or are making payments, the money will be applied to that debt automatically, and you’ll get a letter telling how it was done.
Trust me, he’s better off filing, and letting the stimulus check go, if he has to sit before an IRS investigator and explain why he spent the money knowing he owed back taxes, and never filed...not good.
Do your brother a solid, and make him file, he’ll thank you later.
“I heard if you owe taxes, the IRS will take your “rebate” check.”
It’s true.
http://www.irs.gov/newsroom/article/0,,id=179181,00.html
Q. I’m eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?
A. Yes. For this purpose, the Stimulus Payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support.
Q. How will I be notified if my stimulus payment was used to offset an outstanding debt?
A. If this occurs, you will receive a letter explaining how the Stimulus Payment was applied. [New 4/11/08)
There’s going to be a lot of people VERY surprised when they get the letter detailing how their stimulus was spent for them.
ping
“I’m tax challenged, but IMO yes you can get a rebate check and still owe on previous unpaid taxes.”
No, you can’t:
http://www.irs.gov/newsroom/article/0,,id=179181,00.html
Q. I’m eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?
A. Yes. For this purpose, the Stimulus Payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support.
Q. How will I be notified if my stimulus payment was used to offset an outstanding debt?
A. If this occurs, you will receive a letter explaining how the Stimulus Payment was applied. [New 4/11/08]
Unless you failed to file, sure, you can get the check, but do you really want to have to explain to the IRS why you cashed and spent the $600, when you owed $800 for a previous year?
If this applies to you, take the windfall and pay off old tax debt. Trust me, it’ll be much worse if they come after you.
For the great majority of the people receiving this check, it’s a one year tax break (elimination on the first $6,000 or $12,000 for a couple in taxes owed) given early. I have no problem with that. Only a small % are getting a check that paid no taxes and most of those are only getting $300, not $600.
I know this is an election year scam, but whenever I can get some of my own money back, I ain't complaining. The only thing I have to complain about is the fact that my son, who is a senior in high school, and has been totally supported by my husband and I, gets his own check (he made over $3,000.00 last year) without ever paying any federal income tax! We have taken to calling him the "Welfare Baby", and insinuating that we are keeping his money!
Will our rebate come via direct deposit, or will we have to wait for a paper check (according to the list above, that won't be until mid to end of June).
Another question (if anyone knows), we file jointly, which Social Security number is used to determine the distribution date?
I asked and hubby said he was asked if we wanted check or DD on the tax return we filed via TurboTax.
Having the extra money the week that I leave for Las Vegas would be nice, but a check a month later won't hurt either, so I guess I will just wait and see.
Because you claim to see the answer as obvious...why do you pretend to be ignorant by asking the question?
“I’ll tell you what torks me off a bit, that they are giving checks to people who didn’t pay any taxes.”
What torks me off is that I paid a hell of a lot of taxes, and get no rebate because my income was too high.
That small percent is still not the governments money to give.
Any word on rebates coming through yet?
Already got mine.
Already got mine.
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