(Photo: Spencer Platt/ Getty Images)
Speaker of the House Nancy Pelosi, House Minority Leader John Boehner and Treasury Secretary Henry Paulson on Thursday announced a bipartisan deal on an economic stimulus package that would send rebate checks to most taxpayers in an attempt to keep the economy from falling into recession.
According to CNN Money, most single taxpayers would get $600 while most households with two incomes would receive double that amount. The deal includes an additional $300 per child and a total of 116 million taxpayers will receive checks of some amount. Higher-income taxpayers, those earning $75,000 or more or couples earning $150,000 or more, would get reduced rebate checks or none at all, depending on their income.
Paulson said it is possible that checks could start going out as quickly 60 days after legislation is enacted.
So what do you need to do to receive your check? Absolutely nothing, but since the IRS is currently in the middle of the 2007 tax-filing season, it could be late spring or even early summer before the agency can begin mailing checks.
UPDATE: I’ve heard conflicting reports concerning the impact of rebate checks on your return for next year. Some have said that this is merely an advance payment of your return. Others say that because the IRS is changing the tax tables, the refunds will be based on those and since the checks do not count as earned income, you do not need to report it on your ’08 return, which means it has no effect on your tax return or refund.
Concrete Loop will definitely keep you in the loop with this story as it develops and always remember, “there is no such thing as a free lunch.”
