Has your personal economy been stimulated yet? That sounds kind of racy doesn't it? I'd be very curious to find out the percentage of how us "stimulated folks" will be using our sudden windfall. Will we buy that big ticket item at the local electonics store or take advantage of all the ads I've been seeing on tv by the car dealerships that want you to apply that money to a new car. Or will we go to the big box home store that wants us to spend our windfall to do remodeling in the home? It'd be so easy to just sign the papers and wait for the delivery wouldn't it?
I haven't received mine yet. Since I owed Uncle Sam this year they don't have a direct deposit listed since I've had to pay the last two years. So, I've got some time (the end of July) before my windfall arrives. That gives me plenty of time to decide how to parcel it out. No, there won't be a new car or that 52" tv in my future. Mine will be going toward my property taxes, some small bills, some stocking of the larder perhaps and however else I can make it stretch to get the most use from it.
I've also hearf from family and friends that whatever amount we get will be considered income on our taxes for next year. Is this true? Another question I had was how much will I be getting since I'm basically retired? I've no doubt that there are singles, other semi-retirees and families that also have tons of questions on the economic stimulus regarding the amount, how its figured out, when they will be getting it amongst the most common questions. Here's what you do. Go to www.irs.gov I checked the site out and all the info you would want is there in easy to read English.
For example:
Is my stimulus payment taxable?
A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment.
Q. If my stimulus payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received?
A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08]
Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.
Q. I don’t qualify for a stimulus payment based on my 2007 return. But my tax situation will be different in 2008. Will I qualify for any special benefit?
A. Possibly. The 2008 tax instructions will include a worksheet to help those who did not qualify for a payment or those who received a reduced amount determine if they can obtain a benefit when they file their 2008 tax returns next year.
The above is just an example of the information on their site. I sure hope this helps my readers as much as it's helped me. Enjoy your stimulus package no matter how you decide to use the money.
