People can expect rebates in the middle of May

All taxpayers can expect a rebate of up to $600 in the middle of May. This plan will be approved by Congress within weeks. The IRS has already started on the preparation to send out rebate checks. Here are the details on the rebate plan:

Middle-class people, individuals whose gross income earnings is less than $75,000, can expect to get a $600 rebate. Couples could get a $1200 rebate. The rebate size can rise or fall depending on the size of the family.

Individuals who make more than $75,000, couples whose joint income is more than $150,000, will get a smaller rebate. For the low income families of four people, with income of $35,000 and no tax liability, would get $1200. That means $600 flat per couple and $300 for each child. A single person with income of $16,000, no children, would get a rebate of $600 flat.

People whose income is solely a social security check won’t get any rebate. Retired couple owing $4,000 in taxes would also get the full $1,200. A single person who earns minimum wage would get a single rebate of $300.

This rebate plan is designed to help working middle class. It doesn’t really benefit the wealthy or the poor. It focuses on putting more cash into middle class hands because these are the people more likely to spend the rebate check. I think it is a great idea for now. As consumers, we really need a break from taxes. Also, the rebate check will help many people to pay for their bills, credit card debt, or mortgage. I am sure the extra cash can simulate our economy in a positive way in the short run.

If you are interested in finding out more information about the rebate plan, or which category you fall into, you can visit the following websites:

http://biz.yahoo.com/ap/080126/stimulus_rebate.html
http://ap.google.com/article/ALeqM5jkFJhFOiiCe5SexadbIx7vUT_MZQD8UD5O5G1