Taxpayers Could Get Some Extra Cash Back This Year
The whole point of this tax rebate plan is to give people some money back even before filing taxes for 2008.
During Monday night's State of the Union speech, President Bush said he hopes this plan will give the American economy a boost. Most people are looking forward to getting some of this money back.
But while some are going to spend, others are planning to use this money to pay their debt. Those who know taxes inside and out say be wise before you start spending.
"The wise thing to do would be to pay off as much debt as you can with this money so that you have that payment reduced, especially if you can eliminate $1,600 in credit card bills or something," said David Fisk, with Liberty Tax Services.
Those who apply for this tax refund will most likely get a check back sometime this Summer. A single taxpayer would get $600 and double that amount for a two-wage household.
There's an additional $300 per child. But the exception goes for those making over $75,000 a year or $150,000 as a couple. They would end up with reduced rebate checks or none at all.
This tax rebate plan is still up in the air. It has to be voted on by the Senate first before anyone receives a check in the mail.