It’s the most terrible time of the year — tax season. But there’s something unusual about it this year. Some folks are actually looking forward to hearing from the IRS.
Blame the bizarre exuberance on the government’s decision to send checks to taxpayers as a way to jump start the economy. Not surprisingly, news of the “economic stimulus plan” is a hugely popular topic in Yahoo! Answers. People want to know if it’s true that “everybody” is really getting a check.
I went in search of an answer and found that the vast majority of Americans will indeed get some money from Uncle Sam. If you have a valid Social Security Number, can’t be claimed as a dependent on a tax return, and have “either an income tax liability or qualifying income of at least $3,000″ you should get between $300 and $600 by mid-May.
That should cover most Americans, but not everybody. Read the small print and you’ll see that there are limits to Uncle Sam’s generosity. For example, the plan begins to “phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000.”
So, what do you think of this as a means to fend off a recession? Are these sorts of packages a good idea or are there better ways to boost a sagging economy? If you get a return, will you spend it, invest it, or pay off debt? Please leave a comment below and share your thoughts.
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