Uncle Sam has decided to give you back some of your money. President Bush and the Congress passed the Economic Stimulus Act of 2008. Every tax payer gets up to a $600 rebate. The rebate goes up to $1200 if you are filing jointly and you could possibly get another $300 for each qualifying child.
While I’m all in favor of getting my money bank from a corrupt and ineffective bureaucracy, I have to take issue with the cost. You may think I’m talking about the cost of the rebate itself. While it’s true that the US Government has a huge pile of debt and this money could go a little ways towards paying it off, I’m actually talking about the price of the sending out notification letters.
It’s reported that just sending out notification letters cost the IRS $42 million. Can you believe that? Is the IRS really concerned that somebody is going to get a check from them and throw it away? I don’t’ understand the rationale behind the notifications. The rebate program has been in the news for months and I’m sure it will be again once the checks start rolling out.
If the Congress had really been interested in an efficient system they would have passed the bill in time for this to be rolled into the tax system for the 2007 tax cycle. However, through political maneuvering and grand standing this bill was delayed but ultimately passed.
It’s interesting also how the rebate comes in an election year. Is this to remind us good citizens which side our “bread is buttered on” so to speak? If the Congress wants to stimulate the economy they need to work on reducing the national debt, eliminating deficits and cutting taxes. This means cutting the pork barrel spending. I can’t really see this happening in the near future.
What are you going to do with your check? Do you have a new TV in mind? Maybe pay off some credit card debt? How about investing it? I know that’s a radical suggestion and definitely not what the sponsors of this bill had in mind. To “stimulate” the economy, they want you to spend every last dime of this money in Best Buy, Wal-Mart and Target. In fact they would be happy if you spent your rebate check and then took out a second or third mortgage and then spent that.
It seems many of our congressmen (and women) want us to act like sheep. They use the tax code and these petty little hand outs to control our behavior. As long as we keep voting for the incumbents they’re happy. They definitely know how to make themselves wealthy while in office and after their out.
The one thing that most wealthy people fear is the government. We can plan for natural disasters by purchasing insurance. We can hedge our investments and plan for a secure future for our families. However, we can’t protect ourselves against the ineptitude of elected officials. Governments at all levels are a risk to wealth. And yes, both parties are to blame, don’t think one party is necessarily more friendly towards wealth.
My point in all this? Enjoy your refund check; just remember it’s your money and not a “gift” from the government. Use your money to pay off bills or save for a rainy day. I’m going to use the money to pay for a bathroom remodel. It was something I was planning to do anyway. Hopefully that will stimulate the economy.
–UPDATE–
I've written a new article to address some of the questions I've received on the economic stimulus payments. Check it out if you want more factual information about the stimulus payments.
Article Links
Economic Stimulus Payments Information Center on IRS Website
Calculate Your Projected Stimulus Payment on the IRS Website
Related Posts
- Is the Economic Stimulus Payment Taxable Income?
- The Stimulus Payment Was a Ridiculous Political Stunt
- Will There be a Second Stimulus Package or Payment?
- IRS Where's My Stimulus Payment Web Page
- IRS Economic Stimulus Payment Article Index
Comments
34 Comments so far
Isn't their an income-based phase-out on the stimulus checks?
Jeff,
Yes there is. You can use the calculator in the Article Links to estimate your expected payment. Phase-outs begin at $75,000 for single filers and $150,000 if you filed jointly. If your income is high enough you might not get a rebate at all.
Sorry I kind of went off on a tangent and letf out some of the details.
Thanks!
If you owe the IRS money for back taxes and for 2007 will you receive the stimulus check or will they put it towards the taxes you owe the government
Belva,
That's a good question. From the IRS Website:
"All or part of an economic stimulus payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset."
-http://www.irs.gov/newsroom/article/0,,id=180247,00.html
[...] Your Economic Stimulus Payment [...]
I filed separately because my husband owe for child support. will I still be getting the 1200 payment or the 600 payment? And would I be getting the 300 each child?
Karla,
It depends, did you claim the kids or did he?
Here are some examples on the IRS site:
http://www.irs.gov/newsroom/article/0,,id=179642,00.html
You can also use the calculator on the IRS site:
http://www.irs.gov/app/espc/
Thanks
thank you for your fast reply. I have filed both kids,
also I didnt get the second letter that the IRS sent out. I'm I still eligable for the rebate?
My husband and I filed in January and we never received a letter saying we are getting it. I went online to see if we qualify it says we do for 1800.00 The last four didgets of his social is between 00-029. We have not received the payment. I was wondering would there be a reason we are not getting it?
Thanks
I work full time and my husband is on disability. Our combined income is less than $25,000.
We only get $600 stimulus back while most couples are getting $1200. I don't understand this.
Karen,
The amount you get is based on the amount you actually paid into taxes on your 1040. Less income, less taxes owed that why you may not be eligible for the full amount.
Kelly,
If you filed through a third party and not directly with the IRS you may be getting a paper check. There is a Stimulus status on there (irs.gov) now that if you are getting direct deposit it will tell you when; if you are getting a cehck it will not have your info yet.
Karla,
I dont know of anyone who got a second letter. I think the IRS determined it was too costly to notify people by mail so they posted a stimulus status on thier website. If you filed seperate from your husband, you will most likely get the $600 (not the $1200) but it is actually based on the amount of taxes you paid this year so some arent getting that full amount. Whoever claimed the kids will get the $300 for each child. Next year instead of filing seperately, if you are living together, it may be best to just file an injured spouse form. I was in the same situation a few years ago and we would have got more back filing joint than filing seperate but I just let it go so his child support would be paid and his weekly amount could be reduced. When you file injured spouse they take into consideration your income and your children so they only take a portion of the refund for child support offset.
And last but not least, Belva,
If you owe the IRS or another government agency your stimulus will be offset to cover that debt. However I have found out they dont necessarily take it all. My grandmother only gets social security and filed a joint return even though my grandfather passed away mid 07. They owe a debt to the IRS but because he is deceased I was told be an agent she may get part of the stimulus and only part will be applied to the debt. Thats kind of a wait and see situation. If they do offset your stimulus they will notify you by mail of the amount they applied to the debt.
Hope I helped everyone..Good Luck and God Bless!
my husband owed taxes for 2006 and they were paid back with 2007 tax return. he receive a noticed stating that he would be getting a stimulus refund check. based on his social he would be receiving the check by may 2….i have gone on the irs site to see when the check would be arriving and it states that his social does not exist. what should he do?
I filed an injured spouse form for my taxes and I understand that I should at least get my portion of the stimulus check. But I was wondering if there is an added time frame because of the injured spouse form? It was supposed to be in our account by today, and it is not. I signed up for direct deposit on our taxes, but I guess because of the injured spouse form, it changed things and they sent us a check for my tax refund. So should I recieve my stimulus by direct deposit like I signed up for, or by check like I actually recieved for my tax refund?
Jennifer,
I would expect a check.
I filed my tax return with turbo tax online, and found out that I owe $456, so I printed out my tax return and mailed it in with no payment in the beginning of April 2008. At the end of my turbo tax process, it stated i was eligible to receive $600 and asked if I wanted it to be direct deposited? I did choose for it to be direct deposited and provided my bank info. On the IRS Website it stated my rebate check would be direct deposited into my account on May 2nd, the last 2 of my social ends in "07″ and I still haven't received my rebate. I do understand that since I owe taxes that it would be deducted from my rebate check, but here it is almost the end of May and I still haven't received it? I was told that everyone would receive a Economic Stimulus Letter to remind everyone of the rebates everyone is getting. I did receive that letter, but when I called the IRS to find out what is going on? They said that I have to wait 6-8wks for my tax return to be processed, and it has been then long! Then they said that I would be receiving a second Economic Stimulus letter stating EXACTLY HOW MUCH I WOULD BE RECEIVING AND WHEN EXACTLY I SHOULD EXPECT IT. Well, I have not received the letter? When I go to the IRS Website and clicked on "Where is my rebate check?" I entered my SSN# & the required info and comes back with no information available? I am really frustrated. So, can you tell me how I can find out when I am receiving it?
Thank you,
Cindy
I did finally recieve a check for $300, even though I signed up for direct deposit. I did get a statement in the mail earlier saying that I would end up with $600 but apparently it was just a generic letter and did not take my husbands debt into consideration.
If my stimulus payment will be offset, when will the IRS notify me? I called the offset hotline and the automated machine said there isn't an offset in the system for me. However, I should have received my check by now. I've never gotten a letter one way or the other from the IRS.
I neither received a letter saying I was or was not receiving money what should I make of this? I filed Head Of household and 2 dependents!
Beatriz,
You wont' receive a letter until the time you are scheduled to get your stimulus payment.
My wife and I should be getting back $2100. Since I owe child support, my wife filed an injured spouse to claim her share of our return refund. On the Economic Stimulus, the IRS said that Congress decided to just half the Economic Stimulus rebate instead of using injured spouse rules.
My ex wife is getting over $1000 instead of the $300 for me! She is getting paid for kids that are not even hers…
Is this how the IRS is handling injured spouse claims with reagards to the Economic Stimulus rebate?
Thanks!
Dan
Dan,
When you say "On the Economic Stimulus, the IRS said that Congress decided to just half the Economic Stimulus rebate instead of using injured spouse rules" does that mean you talked to an IRS rep and that's what they've told you?
I haven't found anything like that on the IRS site but I haven't searched it lately. If you have a link to a page that says that, I would like to take a look.
Thanks
Sorry, I do not have a link. The IRS Rep said that is what Congress decided when they passed the bill. My ex-wife is getting half of our $2100 even though we are current on our support and the extra court approved payments on the back owed support.
Dan
I am Dan's wife… I spoke with the IRS rep this am. I was told by customer service that I would only be receiving half of the stimulus payment because I filed an injured spouse claim. I asked to speak to some else, as I had been told last month that the ex-wife would only get the portion actually due my husband, and I was transfered to tax law. The woman in Tax law told me that "congress decided that if you filed and injured spouse claim on your taxes that you stimulus check would be cut in half and half applied to the debt. they do not take into account income and children"
Care and Dan,
I guess that makes sense as half of the payment legally belongs to each of you.
I guess the logic is that his half must go to any back support payments that he owes.
Fair or not I guess that's the way it is.
Thanks for the info. I think your comments will at least help other people in the same situation.
Good Luck!
My sister's grandson is on social security disability and he worked some also. They had their taxes filled out at a low income place, AARP, I think. When they filled out my sister's grandson 1040 they only included the small amount of $99.00 from his w2 and did not include his Social Security amount at all therefore he did not get his rebate. Can he file an amended form? And if so which form does he need to use?
Hi,
I just received a letter last night that said that all of the $1200.00 would go to back child support. How can they take my half as well?
Doris,
Check out this article: http://wealthyreader.com/articles/irs-stimulus-payment-what-if-my-spouse-owes-money/
You should be able to get your half back.
my husband and i filed our taxes and he owed a student loan i knew nothing about. they held our taxes cause i had no income except disability.. then we got a letter about the stimoulus payment and i filed injured spouse and h and r block filled out the form i havent heard anything.. the last two numbers of my social are 17… how can i know how and when and how much
I was just wondering why some couples recieved !200.00 Dollars and some couples 600.00 Dollars
is it true that the President is planning to give another stimulus refund before the president's election?
just want to know
We should recieve another payment with the increasing price's of gas an food.
Is there any web site/phone number to find out if IRS have sent the Economic Stimulus Payment?
thanks
I filed the 8-1-08 I haven't received a letter or notice. Can I check to see if I will receive money and verify how much, Please. Thank You
Arewe going to get a stemulus check in 2009? Themiddleclass people think that they are going to recieve 1,000.00 dollars. Is this true? Remeberthat a statement was made when Obama was trying to get VOTES.