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Monday, May 05, 2008

Where is Your IRS Stimulus Check?

Getting Paid

What do you do when recession is imminent? If you're the federal government, the answer is simple: give people more money to spend (and hope they spend it instead of keeping it under the mattress; there's a recession after all). To that end, the Internal Revenue Service is sending out millions of economic stimulus payments, starting May 2.

If you are eligible, you are looking at an extra $600 in your bank account. Married couples will get $1200, and each child adds an extra $300 to your stimulus check.

If you filed your tax return using direct deposit, you're in luck because you are first in line for a stimulus payment. People wilh the last two digits of their social security numbers between 00 and 20 will have their payments sent by May 2, 21 to 75 by May 9, and 76 through 99 by May 16.

If you paid your taxes by check, expect a check in return from the IRS according to this schedule:

Economic Stimulus Check

Getting Stimulated

Who will be getting a check? "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." That amounts to over 130 million households.

To see if you qualify, you can even use the official IRS Economic Stimulus Payment Calculator. Be sure to have your 1040 ready.

For late filers, remember to file your tax return by October 15 so you will be eligible for a stimulus check.

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Comment Archive

Reader Comments:

Great post. I work for a company that manages and tracks gift cards and we blogged about this issue a few days ago on savvywallet.com. One thing to be careful are the retailers offering 10% bonuses in gift cards in exchange for your stimulus. Consider this: $100B was spent in gift cards and $8B was lost and unclaimed.

The tax rebate checks under the Bush administration’s economic stimulus plan won’t do any good if people simply put them in the bank.

Last week, an online article in the Wall Street Journal claimed that we need to save more money – even if the interest on the savings won’t keep up with inflation. This same article also restated the obvious: “we live in a culture fueled by spending and credit.”

This is double talk and misses the whole point of why America is headed for recession. Wealth is created with credit. The government knows it, the banks know it, corporations know it and the wealthy know it. With credit, there is access to money to spend which increases corporate earnings, which increases tax revenue, both of which provide jobs and, therefore more income for workers to spend which continues this profit cycle.

When you remove access to credit, spending decreases which means earnings drop, which means jobs disappear, which means people stop spending and the problem gets worse and worse. This downward spiral is the recession the government is trying to thwart with the stimulus checks.

If you, and everyone else, takes their $600 average family rebate check and sticks it in the bank then no one is buying the products and services you, or your company, sells to earn the money to pay you your salary. When you lose your monthly income and can’t pay your bills, that is when you end up losing your home and your security.

If you, and everyone else, stops spending then there won’t be much left of Corporate America. People in other cultures have learned to do what North Americans seem to be ‘too afraid’ to do; that is, find ways to earn a living besides going to work for someone to get a paycheck. Just look at the growth of micro-lending companies in India as people start businesses on even less than what the average American is getting in his or her “stimulus check”.

If we don’t wake up and learn how to earn an income that pays for the freedoms and luxuries that we’ve bought on credit, then being broke will be the least of our worries – it will be our freedoms we’re losing as emerging, strong foreign companies and banks who already own more than half the U.S. debt move in to take over struggling American ones.

Saving money is what people do when they are afraid of losing – not when they expect to win. It comes from the scarcity mentality that keeps people from stepping out and finding ways to earn the income they need to live, the way they want to live.

North Americans are able to start and run a business of just about any kind using credit. We can even use that money to invest in a variety of wealth building ventures that others have started – both of which create more income which enables more spending.

If you had planned to invest your stimulus check in a growth mutual fund or stock, your investment returns would give you about 7% as suggested in the Wall Street Journal article. On a $600 stimulus check that works out to only $3.50 a month. However, without spending, those returns would drop because the companies wouldn’t be earning the returns they had in a strong and growing economy.

For $600, you could buy a bolt of cloth and make dish towels and your profit would be much more than $3.50 a month. Make cookies, make anything and sell it! Alternately, if you don’t know how to sell what you’d make, then take a course to develop your financial and entrepreneurial skills.

Please spend the money from your stimulus check, and while you’re doing it, make sure you start learning how you can earn even more money on an ongoing basis.

And, be sure to pass on this important message!

just another bullshit tactic by our crooked gov.

boy i tell u that sure was a choice for a dem. for pres. personally im voting for daffy duck
we sure didnt need another clinton
and we dont need a raghead

i heard that there was going to be a second stimulus check,is this true or not and when

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