Americanos, what are you doing with your $600?

[Table 5]

Originally Posted by Displaced Flames fan

$75000 if you're single. The limit is $150K if you are married.

yep, i meant per person, i guess it didn't read that way.

[Locke]

So every person in America gets $600?

I said this when they did it here in Alberta, but the issuing costs on this must be astronomical.

Its going to go to what? Roughly 300 Million people? Whats it cost to issue a cheque to that many people?

[MolsonInBothHands]

I wonder how many folks will show up at a government office with outstanding warrants looking for their check?

[OilersBaby]

yup, my husband and i made just under the max last year so we got our $600 each. we decided to put the $1200 to pay for our ticket to Germany (we're using the buy 1 get one free deal that lufthansa has when you do European Delivery with BMWs).

the gov set up this program as a way to stimulate the economy. they assumed that the extra $$ would result in people spending more money. however, most everyone I know is using it to pay BILLS (mortgage, car payments etc)

[Displaced Flames fan]

Originally Posted by Locke

So every person in America gets $600?

I said this when they did it here in Alberta, but the issuing costs on this must be astronomical.

Its going to go to what? Roughly 300 Million people? Whats it cost to issue a cheque to that many people?

You didn't read the entire thread.

[Displaced Flames fan]

Originally Posted by OilersBaby

the gov set up this program as a way to stimulate the economy. they assumed that the extra $$ would result in people spending more money. however, most everyone I know is using it to pay BILLS (mortgage, car payments etc)

Which is still stimulating the economy. Not saying it's going to do what they want, but to insinuate that if the money isn't spent on 'stuff' that it isn't stimulatiing the economy is wrong.

[OilersBaby]

Originally Posted by Displaced Flames fan

Which is still stimulating the economy. Not saying it's going to do what they want, but to insinuate that if the money isn't spent on 'stuff' that it isn't stimulatiing the economy is wrong.

you're right, i worded that wrong. what i meant to say is that the gov was hoping the extra cash would stimulate the retail economy and people would buy more stuff.....stores are hurting! thats what it said in an article i read a while ago. although if people pay bills with the money given by the gov, then maybe they will have more funds to buy stuff with

[notoepik]

Mr Notoepik and myself are doing our part to stimulate the economy by remodeling the bathroom with our $1200 windfall. New flooring, new sinks and cabinets and countertop. New lighting.

The really silly part of the Economic Stimulus package was that the government sent everyone a letter telling them they were going to be sending a check. Pretty sure everyone heard about it already. Then the government sent another letter telling us that they were sending the check. I wonder how many millions it cost to send the 2 letters telling us what we already knew.

here is the clip from the ESP website regarding who gets money

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

[Ice]

A big problem with all of this is that many people don't understand this is an advance on a potential refund you might receive next year. I know people who count on that big income tax refund every year, and its going to be 1200-1800 less for most couples and a lot of people are going to be disappointed.

Even my mother called me, who is retired and living off investments and social security, all worked up that she was told she gets nothing. Yes, she gets nothing because she doesn't pay taxes, there's no refund to advance 600 bucks against.

It seems most people hear they're getting money from the goverrnment and they get so excited they're not thinking about where its really from.

I agree with Oilersbaby, most people I know are paying debt with their checks, not going out and shopping. According to my husband, I don't need a stimulus check to aid the economy by shopping. But, if I was struggling, I'd probably use it to pay down debt. I like to put any sort of surprise money, big or small, into the bank. My kid's hockey drains that account from July - March, every year more than the last. Its worse than gas prices.

[Displaced Flames fan]

I SHOULD be using it for a trip to the Flathead, shouldn't I notoepick?

[Displaced Flames fan]

Originally Posted by Ice

A big problem with all of this is that many people don't understand this is an advance on a potential refund you might receive next year. I know people who count on that big income tax refund every year, and its going to be 1200-1800 less for most couples and a lot of people are going to be disappointed.

Even my mother called me, who is retired and living off investments and social security, all worked up that she was told she gets nothing. Yes, she gets nothing because she doesn't pay taxes, there's no refund to advance 600 bucks against.

It seems most people hear they're getting money from the goverrnment and they get so excited they're not thinking about where its really from.

I agree with Oilersbaby, most people I know are paying debt with their checks, not going out and shopping. According to my husband, I don't need a stimulus check to aid the economy by shopping. But, if I was struggling, I'd probably use it to pay down debt. I like to put any sort of surprise money, big or small, into the bank. My kid's hockey drains that account from July - March, every year more than the last. Its worse than gas prices.

Absolutely 100% false.

[OilersBaby]

Is this money going to be considered as income for this year and we'll get taxed on it next year?

[Displaced Flames fan]

Originally Posted by OilersBaby

Is this money going to be considered as income for this year and we'll get taxed on it next year?

No.

[Ice]

Originally Posted by Displaced Flames fan

Absolutely 100% false.

Are you sure? Not that I'm questioning you, but my tax accountant made it clear to me that this was an advance on next years refund. I had no reason to think he was wrong on this. If its not an advance, where is the money coming from?

[OilersBaby]

Originally Posted by Displaced Flames fan

No.

Good! Cuz that would suck if they took some of it away as taxes.

[Displaced Flames fan]

Originally Posted by Ice

Are you sure? Not that I'm questioning you, but my tax accountant made it clear to me that this was an advance on next years refund. I had no reason to think he was wrong on this. If its not an advance, where is the money coming from?

I'm 100% positive. You need a new tax accountant.


http://www.irs.gov/newsroom/article/...182003,00.html

[Ice]

Interesting. Then is there some sort of tax cut coming that this is an advance of? It can't be as simple as free money, can it?

[Displaced Flames fan]

Originally Posted by Ice

Interesting. Then is there some sort of tax cut coming that this is an advance of? It can't be as simple as free money, can it?

Why can't it? It's a retroactive tax cut. A rebate on taxes already paid.

I don't know your mothers situation of course, but I'm pretty sure she can get the rebate if she files a return for this year....even if she is not required to do so normally. Keep in mind, this is a rebate..not a refund.

There's a big myth out there about previous tax cuts....tax cuts for the rich they like to call them. You and I both know that the poorest Americans don't PAY income taxes. So, when income taxes are cut it doesn't affect them. Well, this is different. You don't have to have paid any income tax to receive this rebate.

[Ice]

It just seems like this isn't the time for the goverment to be sending out this much money. Taxpayers getting money to pay off debt while the country goes deeper in it, it doesn't make sense to me. But I'm not going to complain about extra money, I'm just doubting its going to have the impact the politicians think it will and the country could be worse off for it.

[OilersBaby]

Where is this money coming from is what I'm wondering..