Recordpub.com - How will you spend your rebate?

By Colin McEwen and Mike Sever

Record-Courier staff writers

What are you going to do with your economic stimulus rebate?

That's what the federal government is calling the rebate checks being sent out by the Internal Revenue Service -- sent to more than 100 million Americans. And it's the question many people are pondering.

The IRS has started sending out tax rebates, which will arrive by mail or be directly deposited into bank accounts, depending on how you filed your taxes. Checks started going out in late April and are expected to continue through mid-summer.

The rebates, which range from $300 to $1,200 per household, are part of President Bush's plan to put more money into people's hands in hopes they'll spend it and get the economy back on the rise.

"It's already spent," said Krystine Poots, a clerk with the Portage County Board of Commissioners. Poots said she has been saving up for a four-wheeler and the rebate will help her reach that goal.

Carol Kurtz, an auditor for the county commission, is taking a systematic approach.

"One-third to the foodbank, a third for going out to dinner, and a third for the future," Kurtz said.

"The food pantries are empty and people of all kinds are showing up" and need help, she said.

Tracie Kellison, the manager at Cheap Tobacco in Ravenna, said she will use the rebate to pay her rent.

"Rent comes first," she said. "Most everyone I've talked to is using it to pay their bills."

Bryan Beetler of Brimfield said he was looking forward to enjoying the money.

"I'm going to take my daughter and girlfriend on a trip," he said. "I'd like to do something nice for my little girl"

Beetler, a construction worker and part-time college student, said a vacation may be just what he needs to escape from his busy schedule.

Scott Hutchinson, general manager at Guido's Pizza & Catering Service, said he plans to finish some much-needed home improvements, laying mulch and installing new doors.

"It just so happens to be a good time (for the refund check)," he said, adding if any money is left over he would invest in hobbies.

Rick Coe, president of Portage Community Bank, said he had not considered what he will do with the rebate, but thinks he may take a relaxing trip.

"I'll probably do something I usually wouldn't do," he said. "Maybe I'll take a long weekend, or golf somewhere different."

He said his personal choice differs from what he would suggest to most Americans struggling to pay the bills.

"There's no doubt people are struggling," he said. "People will be using the money to pay bills rather than play. I'd like to think there will be more than a few people who will pay their debt."

Posted by Andereee May 16, 2008

I know alot of people who had direct deposit, and are still awaiting their money. I had my 2008 tax refund directly deposited and since my last 2 digits of SS# is 16, I expected my rebate by the 9th. I didn't make any unwise spending decisions pending the deposit...THANK GOD! When my money didn't show up, I decided to wait a week. After giving extra time, I STILL had no money so I called the IRS and found out something interesting that most people (at least those I have spoken to) didn't know.

Alot of people, myself included, used an online tax program such as Taxcut, Turbotax, TaxAct, or similar. When you file in this manner, there is a fee for the service of which you have the option of paying for by credit card at the time you file, OR, you can elect to have the software deduct the amount directly from your taxes.

When you opt to have the fee taken from your tax return, a 3rd party bank (such as Santa Barbara Bank and Trust) is the actual payee of your return. The bank has your money routed to them, they deduct their fees, and then deposit the remaining funds into the account you specify.

The IRS told me that because of this, they cannot directly deposit a rebate to you because the funds would go to whatever 3rd party bank was involved. I was told that everyone who had their taxes handled in this manner would recieve a paper check instead of a direct deposit.

Sooo, I went from recieving my money by the 9th, to expecting to recieve it by the 23rd....at least thats when the check is "scheduled" to be sent. THIS SUCKS however delayed money is much better then NO money.

Posted by RTOWN May 16, 2008

ckstow - here are some FAQ's on the IRS website that I found. Hope this helps.

Q. I chose direct debit to pay my tax bill. Will my stimulus payment be direct deposited to the same account?

A. No, the account information used for an incoming direct debit payment to the IRS cannot be used as the account information for the direct deposit of the stimulus payment. People who choose direct debit to pay a balance due will receive their stimulus payments by paper check through the mail. [Updated 3/3/08]

Q. If I'm not expecting a refund, should I still fill out the direct deposit line on my return so I can get my stimulus payment directly deposited?

A. Yes. Even if you aren't due a refund on your tax return, filling out the bank routing information will allow for your stimulus payment to be directly deposited

Posted by janey_lane May 16, 2008

bill shane,

it's too bad that most Americans like you are placing the blame on everyone else for their own problems. yes, marketing tactics are sneaky and the government sucks but we have brains and the ability to think for ourselves if we so desire. if you bought a gas guzzler, it's your own fault, not the company's for selling it to you. Of COURSE they're going to try to sell you their most expensive impractical auto! If you wanted an alternative vehicle maybe you shouldn't have spent so much on a newer auto & waited for one to become available. Use some common sense and for god's sake take responsibility for your OWN ACTIONS!

As for the government, at least a protest at KSU would be doing something about this awful situation, but again, lazy people would rather blather on about it and do nothing to organize and change the status quo. Again... RESPONSIBILITY FOR YOUR OWN ACTIONS. If you are dumb enough to be duped into falling for the ploys of a fascist government or huge corporations, then just sit back and enjoy the mess this country's gotten into. Chances are, you are already blissfully unaware.

Posted by Ohio Gal May 16, 2008

This may seem trivial but when they ask the president of a bank what he is doing with his check doesn't it seem odd? I don't know the income he receives for his job but after a certain level I believe 75K your check is reduced for 5% for every l,000.
Same as the earned income credit, you have to be below certain income levels to even receive it. I don't think it's fair but such is life.
Also regarding the Shannon whining again, did she say in her post everyone has credit card debt or a student loan to pay? I think that is a broad assumption. I hope her student loan is for an education she actually completed. If she was mentioning the student loan to be impressive I'm still not impressed with the choice to be voluntarily underemployed and on the "system" as well as voluntarily feels belittled because she receives assistance, again because she's entitled to it and it's owed her as she over and over again attempts to justify her concious lack of wanting employement.
Ok enough stirring the pot for one night.