What will you do with your rebate check?
February 6, 2008 · Print This Article
By now you’ve probably heard about the tax rebate plan that is still being hammered out in Congress.
A plan passed by the House would provide rebates of up to $600 for singles and $1,200 for married
couples, with an additional $300 per child. The tax rebates would begin phasing out for individuals earning more than $75,000 and married couples making more than $150,000.
A Senate version would provide up to $500 for individuals and $1,000 for couples, plus $300 per kid. The rebates would start phasing out at roughly twice the income limits in the House plan. The Senate bill would extend rebates to seniors living on Social Security and disabled veterans.
The purpose of the tax rebate is to get consumers spending to stimulate the economy. Early polls show that most people will pay down debt or save the money rather than spending it.
Here are some suggestions from financial planners on how to use your rebate check:
- Fund your Roth IRA
- Pay down high interest credit card debt
- Open a college savings account for your children
- Take care of home repairs
- Draft wills or take care of other tasks that you’ve put off because you didn’t have the funds to pay the lawyers fees
- Split the rebate between multiple goals - use some to pay off debt, and some to spend
So… how will you spend your rebate check?
I forgot to say what I plan on doing with my rebate check. Since I haven’t funded my Roth IRA for 2008 yet, I’ll probably use my rebate to invest in my Roth.
Any refunds we receive this year will be split 3-ways: 1) contribute to my ira 2) a new oven (and possibly dishwasher) 3) treat ourselves
Paying off debt!! I’m determined to cash the rebate check and immediately make a payment. Otherwise, we’ll find something *fun* to do with the money.
We are actually having Central Heat & Air FINALLY installed in our house with our checks!
Use the money to buy yourself a piece of original art. Your purchase will support an artist. The money spent will enter the economy at a grassroots level rather than going towards some oversized institution or overseas. And, the best part, you’ll get something with lasting value. Everyone wins.
http://artpark.typepad.com/
http://www.MigrationGallery.com