NEW YORK, April 11, 2008
Talking Tax Refunds, Rebates
Most Of Us Will Get Both This Year -- But How Should We Handle Them?
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Play CBS Video Video Is Your Tax Refund Too Big? Some families are looking at thousands of dollars in tax refunds and rebates this season. Janice Revell, senior writer at Money magazine, has a few tips for managing your money.
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(AP / CBS)
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Interactive U.S. Taxes Find out more about where your dollars go, and take a quiz on filing with the IRS.
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And this year, many filers will also be receiving economic stimulus checks from the government in the form of a tax rebate.
What should we do with the money?
Janice Revell, a senior writer of Money magazine, had some words to the wise on The Early Show Friday, in part two of our three-part tax series as the Tuesday deadline approaches.
Some 77 percent of tax filers receive a refund. The average amount received this year for last was $2,225.
But, says Revell, "You're usually better off not getting a refund. That's because the money you get back as a refund is money that could have been in your pocket throughout the past year. By waiting to get a refund, you essentially loaned your hard-earned money to Uncle Sam, interest-free.
"Instead of getting a refund, it would be far better to have that money in your take-home pay every month, where you can use it to pay down credit-cards or other debts, fund your 401(K) plan at work, or just pay your day-to-day bills."
Revell points out that, if you receive the average-size refund, it amounts to almost $200 a month extra that you could have had show up in your paychecks. That's a lot of money, particularly when everyday necessities such as gas and food are costing more and more.
She says that, if your tax refund is more than $500, you're having too much tax withheld from your paycheck. That's when you know you need to call your HR department and ask for a new W-4 form to have more taken out.
This year, tax payers will also be receiving an economic stimulus check from the federal government. Filing a tax return is what enables you to receive the check. If you don't file a return, you won't get the rebate.
Here's what you can expect to get:
If you exceed these income levels, your rebate will be less. If you have a six-figure income, you likely won't receive anything at all.
"Also, if you owe any back-taxes, or if you are delinquent on student loans or child support payments, the IRS will reduce your rebate by any amounts that you owe," Janice points Revell notes.
Of course the next thing people want to know is what's the fastest way to get their hands on this money?!
Whatever you do, Revell says, stay away from refund anticipation loans! "What these loans do is give you an immediate cash advance on your tax refund," she explains. "But they come with sky-high interest rates and fees -- much worse, usually, than what you'll pay on even the highest-interest-rate credit cards. And you're paying those fees to borrow your own money!"
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Posted by far_point200
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liquid panty remover?
Wonderful place to visit and see !!! You will get an idea what the price of freedom you enjoy today int he USA cost those veteran''s
Stay the course !!
It seems more logical to budget upfront and get a windfall later on, than to risk underpaying and then owing a boatload of money, which doesn''t help and especially these days.
Even I learned that, having gotten into credit card trouble and getting out of it.
1) CANCEL YOUR CABLE / SATTELITE TV: let the corporate media moguls (and their advertisers) know that you will no longer pay for their propaganda.
2) DIVEST FROM WALL ("WAR") STREET : the banking ELITE are systematically selling out the middle class to the lowest global bidder yet they still demand the average taxpayer to bail them out when times are tough.. start your own HEDGE FUND and invest in land, GOLD and SILVER.
3) START YOUR OWN BANK - buy a fire safe and fill it w/ cash/coin etc.. don%u2019t empower the banking ELITE to do funny things with YOUR MONEY.
4) SUPPORT & DEVELOP LOCAL ECONOMIES !
- if possible, BURN WOOD for heat;
- support local ORGANIC growers or grow some of your own food;
- implement alternative energy sources (solar, hybrid autos etc ..)
- develop local means of commerce not based on fraudulent Federal Reserve Notes.
5) AFFORDABLE HEALTH CARE BEGINS WITH YOU - healthy eating habits and exercise will create less demand on the system meaning lower costs. You%u2019ll have plenty of time to work out once you UNPLUG THE TV DRUG.
6) STOP UNNECESSARY CONSUMPTION & STOP USING YOUR CREDIT CARD !
7) DECENTRALIZE ! - the global economy is nothing more than a ploy to centralize power, control and wealth into the hands of an elite few - blinded by misinformation, the American people are buying right into it - the rich get richer and the middle class is quickly becoming the working poor.
THIS IS EXACTLY
It is a wise investment.
:)
It doesn''t pay to work in the United States of America anymore. It doesn''t pay to save either.
and that is a shame...
Son of Satan, you''re doing a heck of a job.
Ahhh, the old shell game.
Whoa, look over there....
1) Pay bills/debts
2) sorely Needed living goods such as needed clothing or food etc.
3) Save if you dont have much or anything saved.
4) invest if you have a savings.
5) if youre richer than sh|t, then go ahead and spend it on whatever you feel like, but i recommend charities or your neighbor that just lost their job.
you pry already have everything you want anyway, so help someone in need.
"She says that, if your tax refund is more than $500, you''re having too much tax withheld from your paycheck. That''s when you know you need to call your HR department and ask for a new W-4 form to have more taken out." MORE taken out? i think this is a mis-statement.
all4evrhis - good info there. Except the obvious distaste about poor people that get angry when they dont get what they think they deserve.
A) they pry need it like crazy which makes people irate when they are desperate. (ever seen famine in africa when a food truck arrives?)
B) Rich people get just as IrAte when they dont get what they THINK they deserve- which goes beyond greed and money. it includes slave-like service & attention with pompous arrogance.
As for the tax rebate, the real story is: they are only for people with an AGI of $3,000 or more; they range from $300-600 per adult depending on their tax liability. If you did not pay $600 in taxes, you will receive only $300. For couples, if you did not pay $1200 or more in taxes, you will only receive as much as you paid (ex: you paid $900 in taxes that is what you will receive); not everyone will get it in May. According to the IRS payment schedule, only direct deposits go out in May. If you had your refund mailed, the stimulus payments will not go out until June; one more important point - the stimulus payment will have to be claimed as income on your 2008 tax return. For many it won''t make a difference - but for some who are close to the next tax bracket - it could make a big difference in their tax bill.
bummer!!!!
As for the tax rebate, the real story is: they are only for people with an AGI of $3,000 or more; they range from $300-600 per adult depending on their tax liability. If you did not pay $600 in taxes, you will receive only $300. For couples, if you did not pay $1200 or more in taxes, you will only receive as much as you paid (ex: you paid $900 in taxes that is what you will receive); not everyone will get it in May. According to the IRS payment schedule, only direct deposits go out in May. If you had your refund mailed, the stimulus payments will not go out until June; one more important point - the stimulus payment will have to be claimed as income on your 2008 tax return. For many it won''t make a difference - but for some who are close to the next tax bracket - it could make a big difference in their tax bill.
- by flowmaster33 April 11, 2008 1:33 PM EDT
- three words for ya "out of touch" most people that use the ral are behind on bills, need a reliable vehicle, or needed the money yesterday to find decent housing. This group of people are barely hanging on much less have a bank account. Why should they care about a relatively small fee that comes out of not tax money they paid in but rather e.i.c. which gives them thousands of dollars none of which they have paid in. The real rip off is not the ral but eic which perpetuates a welfare state.
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