Economic Stimulus Payments aka "rebate checks"

Earlier this year the House and the Senate passed a multi-billion dollar economic jump start called the Economic Stimulus Act of 2008, a package which President Bush signed into law in hopes that it will stimulate the economy and keep it moving.  The stimulus payments are not taxable and will not reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 tax return. 

It's no surprise that the economy has been lackluster with a variety of economic forces working against the United States as a whole, but this article isn't about the economic woes of the real estate and mortgage markets.  No, this article is about the Economic Stimulus Rebate Checks. 

How will you use this money?  When do we expect to see these rebates?  Who is eligible to receive these checks in the first place?  All of these are great questions and to help you understand, I wanted to share a few resources to help you with the answers. 

Before I offer any suggestions on how best to use this money, I thought to first provide some information about who is eligible and how much is possibly at stake. 

According to the IRS website, the Treasury Department will be issuing stimulus payments, also known as "rebate checks" as early as May 2^nd for about 130 million households.  In order to receive a rebate check you will need to have a valid Social Security number, have at least $3,000 in reported income, and file a 2007 federal tax return. 

If you are eligible, you will receive up to $600.00 or $1,200.00 for married couples, and parents of children will receive an additional $300.00 per child under the age of 17.  Even if you're retired, a disabled veteran, or are a low-wage worker and are usually exempt from filing a tax return, you are encouraged to file one this year to take advantage of receiving these funds. 

To find out if you're eligible to receive a stimulus payment, go to my website at http://www.homeloans.cc/ and click on the IRS Rebate Link to learn more.

How will you use your stimulus payment?  You can save or invest the amount by putting some towards your Roth IRA or other investment vehicle.  It may not be as fun as buying that new plasma 50" wide-screen but this usage is more than likely the most responsible use of the money. You can also use this money to boost or create an emergency fund. 

Improve the life of another by giving some or all of your stimulus payment to charity, your local church, or to a cause you believe in.  How about buying groceries for a family in need, assisting with clothing for a child, or furthering the educational needs of an adult who lacks relevant work skills.  You can use the rebate to improve your own life by buying some improvement books or registering for a class at IVC, SDSU or another distance learning facility. 

Reduce your debt by using the money to pay down or payoff a credit card or other high interest rate debt.  Once this debt is paid off, you won't be burdened with having to send money in each month to cover the monthly payment and you can use this newly freed up resource to help pay off another debt faster using a concept known as "debt snowballing" to quickly eliminate debt.

You can have some fun and take an important and well needed vacation, or perhaps make a purchase of a special item that you have been holding off from buying or doing something memorable for your parents, spouse, or children. 

There is no right or wrong way to use the money however I recommend one thing.  Pray about it.  Ask God to give you direction and ask how He would have you use this money, after all it's His anyway.

Let me know how you'll be using your economic stimulus payment by commenting. I look forward to hearing from you.