Thursday, May 8, 2008

Oh.... what to buy?

Well the time has finally arrived, and the economic stimulus checks have begun landing in bank accounts this month. How you receive the rebate depends on how you filed your taxes. The exact timing for receiving both direct deposit and paper checks will depend on the last two digits of your Social Security number. Paper checks will begin going out tomorrow (May 9th).

But this is all information that I assume you already know. What you may not already know is how you will spend the money once you receive it. The rebates, which are expected to reach 130 million households, range up to $600 for individuals and $1,200 for married couples, plus $300 per child for eligible parents. But with all things considered, such as the heightened price of gas and groceries, spending may be less extavagant than previously expected.

Usually any money sent to the taxpayer has been spent before the check clears. Most taxpayers for one reason or the other usually spend their tax return money on luxury items and drive themselves into further debt. But with these economic stimulus checks, many taxpayers are planning to put the money towards current bills. One reason is due to high prices of our daily/weekly necessities. The other being that the money being received is not that much to begin with. It would seem that this year, you might as well use the money wisely rather than blow it on that new TV. I know personally I will be putting the money towards gas and other bills.

All and all, most are anxiously awaiting their stimulus check. I am afraid though that at the current state our economy is in, it's going to take a lot more of a rebate to pull us out. So spend the money how you wish, but remember that we are probably screwed for awhile.


- Taxus

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