Qvisory - Tools for Life Blog - Spend or Save With Your Tax Rebate

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Spend or Save With Your Tax Rebate

Jason Simon

Posted Apr. 01, 2008
Tagged: Money, Savings, CreditCards

My wife and I haven't calculated how much we are going to receive from the tax rebate, but straight to the savings account it will go. Well, I'll end up putting a few dollars aside for our anniversary dinner; I hope she isn't reading this.

The U.S. Senate and the House passed a stimulus package that will put money in your pocket. Starting in May, the Treasury Department will begin sending payments to more than 130 million households, and you're probably on the list. To receive a payment, you must have a valid Social Security number, $3,000 of income, and have filed a 2007 federal tax return. Complete the Economic Stimulus Payment Calculator to determine whether you qualify!

How much will I get?

This depends on your income level. You may receive up to $600 with an additional $300 for each eligible child younger than 17. The rebate starts out at $300 per person, but rises to $600 per person to match the taxes you will pay based on your 2007 Adjusted Gross Income (AGI).

What should I do with the money?

While the federal government apparently hopes that you'll spend this money on new toys to boos the economy, you may want to hold off and use it differently:

Pay down your debt - If your credit card isn't paid off, there is never a better time to start paying it down.
Emergency Fund - Put your money away for a rainy day. It's that simple.
Invest - Start a retirement plan and make a contribution.
Invest in yourself - Take a class and build skills to take you further in your career.
Buy something - A used bike to get around town, a new post so you can cook more at home - or even a Qvisory membership.

Let us know what you're going to do with your tax rebate.

My name is Jason Simon and I am your Qvisory Money Content Manager.

Money matters to me as much as it probably matters to you. I know what it’s like to feel anxious, confused, and angry while trying to figure out how much to spend on rent, where to find a job, or which credit card to use. These are the types of decisions we all must face.

I strongly believe that Qvisory is opening a space to discuss these issues, learn from each other, and creatively advocate for money, work, and health issues that affect our daily life.

I have worked for a number of nonprofits in the field of intergenerational relations and dispute resolution. I graduated from George Mason University with an M.S. in Conflict Analysis & Resolution and the University of California, Santa Cruz with a B.A. in Sociology and Community Studies. See Jason Simon's other posts and profile.

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