Thursday, February 7, 2008

2008 Tax Relief Checks

The government's plan to send us all money in the form of Tax Relief checks or tax rebate checks has me wondering how this will work. There are already stories in the media about scams that people are running to take your money. Of course, the real question is when will i get my tax relief check?

Once a rebate is decided on, the IRS could start mailing out checks by the end of June since the agency is now in the middle of the 2007 tax-filing season, said Jason Furman, a senior fellow at the Brookings Institution. The IRS, however, is not yet commenting on the matter since negotiations about the rebate are still under way.

The goal, however, for both Democrats and Republicans is to get the money into the hands of consumers as soon as possible.

In a briefing after the president's statement, Treasury Secretary Henry Paulson said, "If (tax relief) is broad-based and simple, I believe we'll be able to get it out quickly and in time to make a difference this year."

On Friday afternoon, House Financial Services Chairman Barney Frank, D-Mass., told CNN he believed lawmakers could pass a stimulus package, including a rebate, by March 1.

Right now, President Bush is said to want an income tax rebate that would be generated by eliminating the 10 percent tax bracket, which applies to roughly the first $8,000 of income for single filers and the first $16,000 of income for married couples filing jointly.

That would mean taxpayers could get rebates of up to $800 if single, or $1,600 if married.

But neither President Bush in his statement nor Paulson in a briefing afterwards would confirm that amount. "I don't want to play bigger than a bread box," Paulson told reporters. "The president is focused on broad-based tax relief for those paying taxes."

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