What are you going to do with your $600?

[CleveSJM]

So, looks like the tax relief plan will be law soon and we are all (US taxpayers) going to get about $600 each. $1200 for couples plus another $300 for each kid. I didn't have WDW on the vacation plan this year, but maybe now I will try to squeeze it in. I'd bet Disney is going to see it's fair share of the relief money. :thumbsup:

Edit - Looks like $500/$1000 if they decide to include Social Security recipients. Still sounds good to me.

[ibrowse17]

Our's will be put toward either a new deck, new kitchen flooring, flat screen tv or a Disney trip. Not sure which it will be, but one of those for sure:thumbsup:

[merlinmagic4]

Braces! Well, 1500.00-2000.00 will go toward the down payment so I might have 100-600 left to play with :) I found out my son was ready for braces right after I decided we could get to Disney in April (by driving) so I would have canceled that if that rebate wasn't in the works. I shouldn't count my chickens but I am.

[dolphinmickey9170]

Probably a trip for just DH and I in December. Maybe!!

[thrillme]

Right now...I'm not counting on it till 2 weeks AFTER it happens. I guess I can look "hopeful" to getting an additional $900 back but I tend to be pessimistic.

IF it does come through it will probably pay off wedding rings my boyfriend and I are going to purchase.

[Wrigley]

Well, my DH and I have different plans for our money! We are working on buying our 1st home and so my DH wants to use it towards costs for that. However, I would like to use it for of course a Disney trip! We'll see who wins!:mickey:

[DizneyRox]

Something tells me we'll see more of the "$1600! We can afford that" Disney commercials in the coming weeks.

[sorarail]

Nov 08 YC is already paid for and we have lots of rewards dollars for food and "stuff" so we can be practical with the $1200 tax rebate. It will be used to replace some rotten wood siding on our house.

[Wayne]

I have to pay self-employment taxes along with quarterly estimated taxes. So, I'll just be turning it around and sending it back to the government.:mad:

[May524]

Maybe a Disney trip in December! OR...paying off some credit card debt! Hopefully the 1st! :mickey:

[Jasper]

So, looks like the tax relief plan will be law soon and we are all (US taxpayers) going to get about $600 each. $1200 for couples plus another $300 for each kid. I didn't have WDW on the vacation plan this year, but maybe now I will try to squeeze it in. I'd bet Disney is going to see it's fair share of the relief money. .

Well, with the number of comments along this vein it appears that many of us are going to do exactly what the government wants us to do which is spend, spend, spend! This is exactly why it makes sense to use direct payments to individuals as an economic stimulant.

So what are the latest guesses as to when the checks will actually be in the mail?

[IloveDisney71]

Since we just had a trip to WDW in December, we'll just be using that money to repair some things around the house and update some outdated light fixtures. IF we get the money...

[magicofdisney]

Since we're on a financial freedom plan, we'll put some aside to complete our emergency fund. That still leaves a good chunk to play around with. I'd LOVE to squeeze in a vacation trip.

[SurferStitch]

I have to pay self-employment taxes along with quarterly estimated taxes. So, I'll just be turning it around and sending it back to the government.:mad:

Join the club....it'll just make our taxes cost $1200 less. :mad:

[laughingplace<3]

Paying for nursing school for another member of the DFamily...:mad: But hopefully, I'll convince her to just continue her original plans: loans and all, so we can use that money to cover a tidbit of our HOPEFUL disney cruise vacation in the summertime. :mickey: Unfortunatley my dad is not a citizen of the US... he's an alien with a green card:( So we will only be getting $900. Boo.

[MNNHFLTX]

It will be used to replace some rotten wood siding on our house.Same here. We'll replace some siding and also some gutters. If it comes through. :fingers:

[MNNHFLTX]

It will be used to replace some rotten wood siding on our house.Same here. We'll replace some siding and also some gutters. If it comes through. :fingers:

[Ian]

Our $1,600 or $1,800 will most likely go directly to savings. We're looking to buy a new house in 2009 and we're trying to horde as much money as possible before then. Sorry government ... you'll have to wait 12 months for us to stimulate anything!

Although I'm still not 100% sure we're going to get a rebate. It's going to depend where the final upper income limit is ... we're very close to not qualifying as it is. If it goes any lower, we're probably going to be excluded.

[disneydrmr]

I was told that we will have to pay taxes on this next year? Anyone know if that is true? If so then I'll be putting it into my savings account in order to make sure I have the money to pay the taxes next year. If not and it really and truly is "FREE" money.. then I would LOVE to use it on a special trip in November to celebrate our 15 year anniversary.. or I might decide to be a mature, responsible adult and use it to pay down some bills... :goodbad:

[tgmousechick]

I doubt very much that it's "free" money.

When we got the rebate in 2001, it counted against the refund we got for 2001 taxes. I suspect that the same will occur this time. It didn't count as additional taxable income.

No economic stimulus here- it's paying off the cc balance so the cards can go bye-bye.

Kim


I was told that we will have to pay taxes on this next year? Anyone know if that is true? If so then I'll be putting it into my savings account in order to make sure I have the money to pay the taxes next year. If not and it really and truly is "FREE" money.. then I would LOVE to use it on a special trip in November to celebrate our 15 year anniversary.. or I might decide to be a mature, responsible adult and use it to pay down some bills... :goodbad:

[scootch713]

We will invest ours... to be used for our daughters catholic tuition. Their tuition is super cheap(the church pays a portion) and we already have enough for next years tuition.. so will save for coming years.

Already have the money for this Nov disney trip :cloud9:

[TigChatt]

So when is this suppose to be decided and when would the checks be in the mail IF this happened??

[BrerGnat]

So along the lines of whether we have to "pay it back" next year, does anyone know how it would work if you got the rebate THIS year, but then you did not make enough money THIS year to pay taxes when you file in 2009? This is going to be us...DH is leaving for Iraq next week and he'll be gone for 13 months. While he is gone, his income is excluded from paying income taxes, but we will have his January income as our income for the whole year (since he's still here this month). It will be like $5000, which is too low to "count" for taxes...so would they seriously make me PAY them back the $1600-1800 that we get this year?

If that's the case, I won't do anything with it but put it in savings and at least allow it to earn interest before I have to pay it back when I file in 2009...

[IloveJack]

I'm not counting my chickens before they hatch :chicken:, but if it's true, then we'll probably be using ours to buy baby furniture. We just found out this weekend that we're expecting our first! :babyroll: If everything goes well, we're still planning to visit WDW at Christmas, but we already have a savings plan in place for that trip. :mickey:

[CleveSJM]

:congrats:

What great news. Best wishes and you'll be sure to enjoy the tax benefits next year of having a dependent.:thumbsup:

[CleveSJM]

So when is this suppose to be decided and when would the checks be in the mail IF this happened??

Congress is trying to decide in the next few days. The House sent a nice tight bill to the Senate and the Senate is messing with it to add senior payments, extend unemployment, etc. If they mess with it too much, it'll lower the amount and/or kill it. About a 95% chance of it happening. If they agree soon, first checks would go out in May and everyone should have theirs by July.


So along the lines of whether we have to "pay it back" next year, does anyone know how it would work if you got the rebate THIS year, but then you did not make enough money THIS year to pay taxes when you file in 2009? This is going to be us...DH is leaving for Iraq next week and he'll be gone for 13 months. While he is gone, his income is excluded from paying income taxes, but we will have his January income as our income for the whole year (since he's still here this month). It will be like $5000, which is too low to "count" for taxes...so would they seriously make me PAY them back the $1600-1800 that we get this year?

If that's the case, I won't do anything with it but put it in savings and at least allow it to earn interest before I have to pay it back when I file in 2009...

It all depends on how the final law is written, but right now it's a simple payment. Not income or anything that needs to be tracked for 2008 taxes. They'll make sure to clearly define that when it is finalized but I'm pretty sure it'll be a simple, one-time, no tax implication check.

[Hammer]

Well, I think they'll get it worked out about including seniors on Social Security (why in the world were they forgotten in the first place?) because that was a really stupid oversight by both sides of the aisle and it should be corrected. All the other add ons should wait and be passed as seperate bills in my opinion.

Whatever the final amount will be for me, should I even qualify (which I do at the current threshold for individuals) I'll use it to pay off one of my credit card bills.

[thrillme]

I really would like to see Seniors who are on Social Security get a cut. So many of them have that check only to go on. Other seniors who have scrimped and saved all their lives to have that "extra" are in turn taxed to death as soon as they try to use it. Having that little extra would be quite nice for them. Even though I have a long way to go before I reach 65 I'm all for giving any benefit possible to seniors since we'll all hopefully be there one day.

If they just give it to working individuals paying taxes only and either eliminate the child credit or limit the child credit to only one per household this could work out for the seniors.

I honestly don't recall any of the "rebate" that I got in 2001 being deducted from my usual tax return the following year. It was the same as it always was I just got a little extra in my pocket.

Are there any "Futurama" fans out there? I remember an episode..."$300 Big Ones" where everybody got a $300 rebate and they were encouraged to SPEND...Amy got a "talking devil tatoo", Leela swam with a whale (she snuck food to feed it in her swimsuit), Fry drank 100 cups of coffee etc...

[prprincess]

We won't do anything fun with the money. Either pay down CC debt or put it towards home improvement costs. But hey, it's money that I didn't have before so it's fine with me!

[adoptionislove]

Something tells me we'll see more of the "$1600! We can afford that" Disney commercials in the coming weeks.

You got that right!!!!!!!!!!!!

[TigChatt]

Anyone hear any more info on if this has gone through yet? Just curious!

[CleveSJM]

The House approved the $600/$1200 version this week. It's being fast tracked to the Senate. Everyone expects the Senate to try to add stuff to it to include Social Security recepients that don't pay tax now and adding an extension to unemployment benefits. That would make the checks $500 ($1000 joint filers). Just a matter of time before they pass something. Probably the $500 version since the Democrats control the Senate and House. Senate votes Monday.

Oh yeah, still looks like $300 a child added in... That's the real DIS money!!!

Still should see the checks between May and July.

[Dakota Rose]

It's going into the vacation fund. :)

[KEYONNAH]

Has anyone heard how they will decide who gets their checks first and who has to wait until July? Our vacation is in June and it would be nice to have extra money to take.

[Dakota Rose]

Well I hope they don't go in alphabetical order! :fingers:

[Sean Riley Taylor's Mom]

Well I hope they don't go in alphabetical order! :fingers:

Sorry, I hope they do!;)

[NewmanFamily6]

Well unfortunately my DH is pretty sure we won't get anything because he made too much last year:( If we did though it would be paying off debt so nothing fun just necessary:thumbsup:

[Donald A]

I will do exactly what the Government doesn't want me to do, pay off debt. Oh, and then, pay income taxes on it when I file my 2008 taxes next year!

[jrpersinger]

Ours is going to our trip in June. That is, if it comes in May as is being suggested. We already have our room paid and flights paid from our Fed refund. So we still need to cover tickets and food... and $1800 should just about do it! That way, we really won't have to mess with our checking or savings, other then for buying odds and ends....

[DanDisney]

Im confused..... Is the refund just the 600 dollars per person or is that 600 dollars in addition to what i would already get? Say if I usally get a 500 dollar refund would I get an additional 600 dollar refund=1100 or would is just be 600 dollars? Im confused!

[merlinmagic4]

Im confused..... Is the refund just the 600 dollars per person or is that 600 dollars in addition to what i would already get? Say if I usally get a 500 dollar refund would I get an additional 600 dollar refund=1100 or would is just be 600 dollars? Im confused!

It's totally different. This is a check that they will mail out to the recipients in May or June (?) and it has nothing to do with the taxes you file by 4/15. So, you'll get both :thumbsup:

[CleveSJM]

Has anyone heard how they will decide who gets their checks first and who has to wait until July? Our vacation is in June and it would be nice to have extra money to take.

Last time they did this it was by the last 4 digits of your social security number. 0000 got them sooner and 9999 got their's last. I'm in the 9000's so I hope they reverse it this time.


I will do exactly what the Government doesn't want me to do, pay off debt. Oh, and then, pay income taxes on it when I file my 2008 taxes next year!

Also, last time it wasn't taxable income. It was like under the table income.


Im confused..... Is the refund just the 600 dollars per person or is that 600 dollars in addition to what i would already get? Say if I usally get a 500 dollar refund would I get an additional 600 dollar refund=1100 or would is just be 600 dollars? Im confused!

It's a bonus check, so $1100 in your example. No paperwork. You just get it. (I doubt it will be the $600 originally passed by the House. The Senate is going add to it and make the checks about $500 each.)

[Diznee4Me]

I had vehicle problems this morning and limped to the repair shop. Any money we might get will now be earmarked to off balance the money I am sure I will have to pay today.:mad:

[disneydeb]

Tuition for daughters.

[AvonleaCF]

Not sure. I'm already getting a good amount back from my federal return, so with this, I'll have a really nice chunk of change.

I'm in the market for a new car so probably just put it toward the payments.

A Disney trip would be nice though...

[Bethis26fan]

My cousin and I today said we are going to take out 500 and take her 4 year old nephew to disney in oct. :)

[CleveSJM]

Senate just caved into the House bill. Looks like $600 ($1200 married filing jointly) and $300 per dependent.

I never thought I'd ever be able to thank Nancy Pelosi for some good work.

[Hammer]

Senate just caved into the House bill. Looks like $600 ($1200 married filing jointly) and $300 per dependent.

I never thought I'd ever be able to thank Nancy Pelosi for some good work.

Um, that's not exactly correct. They are adding Social Security seniors and disabled veterans which were left out of the House bill, so it is amended.

Senate Breaks Stimulus Stalemate

By ANDREW TAYLOR and JULIE HIRSCHFELD DAVIS, AP
Thu Feb 7, 3:27 PM EST
Senate Republicans and Democrats agreed Thursdsay to add rebates for 20 million seniors and 250,000 disabled veterans to a House-passed economic aid package, ending a partisan stalemate over the plan.

The key breakthrough came when Democrats, under pressure from party colleagues in the House, agreed to drop their insistence on adding jobless benefits, heating aid for the poor and business subsidies, and said they would allow a vote on a plan that merely extends the tax rebates to Social Security retirees and disabled veterans.

The package would rush tax rebates of $600 for individuals and $1,200 for couples to most taxpayers and grant businesses tax cuts in hopes of reviving the economy. Individuals earning up to $75,000 a year and couples earning up to $150,000 would get rebates. People who paid no income taxes but earned at least $3,000 a year would get a $300 rebate.

"We're on the verge here of an important bipartisan accomplishment," said Senate Minority Leader Mitch McConnell, R-Ky.

Senate Democrats had insisted on adding 13 weeks of added jobless benefits, home heating subsidies, and new tax refunds for coal producers and struggling corporations. Majority Leader Harry Reid, D-Nev., vowed future votes on some of those elements.

"We all have to acknowledge that the House bill has been improved significantly.... We'll be back and do more things to help stimulate the economy," Reid said.

A Senate vote on the measure was slated for later Thursday and the House is expected to send the bill to President Bush for his signature by the end of the week.

[CleveSJM]

Um, that's not exactly correct...

Sorry. True, they didn't cave on everything just the added unemployment benefits, heating aid, business subsidies and bringing in some of the rebates to higher income people. Those would have lowered the rebate for everyone else to $500.

I'm glad the seniors and disabled vets were added but they need to quit calling it a tax rebate then. My understanding is that they were left off of the Pelosi bill because they already pay no taxes. So this is more of a welfare check to them than a tax rebate.:thumbsup:

[drummerboy]

I have to pay self-employment taxes along with quarterly estimated taxes. So, I'll just be turning it around and sending it back to the government.:mad:


Join the club....it'll just make our taxes cost $1200 less. :mad:

I'm in that club as well, but less tax is less tax, so I'd still be happy.


I'm glad the seniors and disabled vets were added but they need to quit calling it a tax rebate then. My understanding is that they were left off of the Pelosi bill because they already pay no taxes. So this is more of a welfare check to them than a tax rebate.:thumbsup:
I'm not sure I'd call it welfare, especially for disabled vets. I always thought that there was an income tax levied on social securty benefits anyway. I might be wrong about that.

AS A MODERATOR--
To all--So far so good, but please don't let this become a political argument. The original premise was a simple question of how the rebate would be spent. Let's stay on topic.

[magicofdisney]

I was told that this money was actually an advance on what you'd be getting on next year's return. Does anyone know if this is true? In other words, you won't be taxed on it, but it will be deducted from next year's tax return (if you were to get one, otherwise you may have to pay it back? I don't get it....)

[JanetMegan]

Does anyone know what the people who make over $75K get? Also is that income pre-tax or post tax from 2007? I wish there was a good place to read up on all the specifics...

[Ian]

I'm guessing, although not 100% certain, that they're going to go by 2006 income, not 2007.

Most people haven't field their returns yet, so the IRS wouldn't have 2007 income on file for most folks yet.

I'm a bit confused by what I've read, though, so maybe someone can help.

It says, "individuals will get up to $600, plus $300 per child. Couples will get $1,200."

So does that mean you only get the extra $300 per child if you're a single parent? Or will couples get the $300 per child, too?

[SBETigg]

Ian, couples get $300 per child, too. And they're going by 2007 taxable income. Perhaps that's why the checks aren't going out until May at earliest.

People who make over $75,000 per individual or &150,000 per couple will get smaller checks, from what I just read, but they don't specify how much and I'm not counting on anything.

I don't believe they will deduct it from your next year's rebate or expect you to pay it back if you don't get one, as someone else asked. That sounds like a logistical nightmare. But I'm not sure on that.

[magicofdisney]

Here's a website with an analysis of the proposal. Hopefully this link can stay for a little while. Table 1 seems to bring it all together nicely.

http://www.cbpp.org/1-25-08tax.htm

[Ian]

Okay, so if I'm reading this table correctly we should just squeak in under the wire and qualify for the full $1,800.

Very nice.

[JanetMegan]

Thanks for the link, it looks like anyone making over $75,000 will lose 5 cents on the dollar of the rebate for every dollar above $75,000.

[mjm]

Well, since I already had been helping the economy by racking up charges on my plastic, it's going to go towards those charges on my plastic. :blush:

Actually, I wonder if that's where most people are going to use the money.

[murphy1]

I read in the news they upped the senior and Veterans $300. I'm so confused over this whole thing. I'm just going to wait until we get it to see what it turns out to be I guess! I hope it isn't an advance on next years $$. I

[JanetMegan]

Just read this on cnn.com...


The package, which passed the Senate 81-16, will send rebate checks to 130 million Americans in amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200.

The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time.

--------------------------------------------------

Well shoot, I don't even want one if I have to pay it back ya know?

[Ian]

Yeah, I agree ... that's disappointing.

They're not really doing anything, then, except injecting the cash in ahead of schedule. This time next year, there will be just be an accompanying shortage of available cash when everyone's not getting their refunds like they normally do.

[magicofdisney]

Bummer...to have that confirmed.

Now we'll just do what we normally do with tax refunds. And it's not what the government anticipated.

Although it did state that ppl in the lower income tax brackets should be the target because they tend to spend the money right away. At least that's what the analysis reporter stated.

[Nascfan]

Janet just confirmed what I thought and had heard. Well, we'll just put it in the bank and have it available to pay back to the government next April. Since we usually get a very small refund every year, I'm sure we'll have to pay most of it back. Oh well, at least I get to draw interest on it for a year.

[Jeff G]

Just read this on cnn.com...


The package, which passed the Senate 81-16, will send rebate checks to 130 million Americans in amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200.

The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time.

--------------------------------------------------

Well shoot, I don't even want one if I have to pay it back ya know?

How do we opt out? I don't want the money now if I get less next tax season? I have my taxes pretty close to even. Being a family with four kids that means I'll end up owing $2400 next spring. How is this plan helping? This follows the new American philosophy, spend now pay later. They should be calling this a 0 interest loan for 8 months.

This news answers how I'll be using my money, I'll be investing it for next years tax returns.

One more question. how come tax payers are having to deduct this from their taxes next year. Aren't there many who didn't pay taxes receiving $300 along with SS recipients who don't claim income receiving these rebates? How are they going to pay this back?


Is this plan because it's an election year and the politicians are looking good now in spite of the future? Do they relaize we will have $150billion less next spring when we do our taxes? I guess thats after the elections isn't it.

[Bethis26fan]

Just read this on cnn.com...


The package, which passed the Senate 81-16, will send rebate checks to 130 million Americans in amounts of $300 to $600 for people who have an income between $3,000 and $75,000, plus $300 per child. Couples earning up to $150,000 would get $1,200.

The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time.

--------------------------------------------------

Well shoot, I don't even want one if I have to pay it back ya know?



I know what you mean I just read that too, I don't get 600 dollars back federal. So does that mean next year I'm going to have to pay. If so I think that moneys just going to sit in the bank and collect some intrest till next year.

[Bethis26fan]

I did just find this on CNN-money






Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."

[magicofdisney]

I did just find this on CNN-money






Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."
I guess the key is to make changes to your W-2 so that no refund is available, then you'll get to keep the money. :rolleyes: