Tax Rebate Check Update: The 2008 Economic Stimulus Package

This week, President Bush signed the Congress-approved Economic Stimulus Package.

The deal is done - the checks will be coming.

What does that mean for you? Well, that depends.

In short, the 'rebate' is based on income. If you made less than $75,000 last year, you'll get $600. If you made more, you'll still get a check, but the amount goes down as income goes up.

If you're married, you'll get $600 each, and the income cap is $125,000.

If you've got kids, you'll get $300 more for each, with the same income restrictions, up to the maximum.

To answer a few common questions: No, you will not be taxed on this money next year. It is officially considered an 'advance' on 2008's taxes - so you might have to pay it back, but you won't get taxed on it.

You don't have to file any special paperwork to get it; it will be mailed sometime in May automatically. However, you do have to file a tax return (even if you technically don't have to). That's why it's on hold until May; the Treasury Department needs your taxes to figure your check amount.

So, really, the only question left is: what will you do with yours?

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Credit: Bryan Belrad

Copyright: Bryan Belrad