SavvySugar

Do You Remember to Send in Rebates?

SavvySugar — Wed, 20 Aug 2008 14:00:07 -0700

Rebates are one of the ways retailers entice us to proceed with a purchase and offer ourselves some soothing rationalization for doing so. We calculate the rebate when figuring an item's total, yet in the end many of us end up paying full price.

According to consulting firm Vericours, 40 percent of rebates go unredeemed, meaning our forgetfulness / laziness / apathy gives retailers a big win. I'm certainly guilty of procrastinating rebate redemptions until they're expired, are you?

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What Exactly Is a Rebate Check?

SavvySugar — Fri, 15 Feb 2008 15:19:01 -0800

A lot of questions have been trickling in about the rebate check since President Bush finalized the bill for the economic stimulus package on Wednesday. The most common questions have to do with whether or not you qualify to receive one and what exactly a rebate check is. To find out what the rebate check is all about just read more

Your rebate is a one-time tax cut that you don't have to pay back and is considered an advance on the taxes you'll owe in 2008. Contrary to the perplexing explanation that I've been reading everywhere, you don't need to be an accountant to understand the rebate check. One point that can be especially confusing is there are three years are involved (2007-2009), but here's the gist of what you need to know.

If you file your taxes for 2007 and qualify for a rebate check, the rebate amount will appear on your 2008 tax return as tax credit. You won't get any less of a refund than you normally would for your 2008 tax return (which you'll file in 2009). If you didn't qualify for the rebate based on your 2007 return but your situation in 2008 changes so that you do qualify, the government will send you a rebate check next year.

Download the fact sheet that the Treasury created to see how much money you'll be receiving.

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Tax Rebates Could Clue You in to Your Co-Worker's Paycheck

SavvySugar — Wed, 30 Apr 2008 06:43:42 -0700

Tax rebates started making their way into taxpayers' bank accounts on Monday, and because the amount of your check is based on household income Fortune points out that keeping your ears open during this time could clue you into your co-workers' ballpark salaries. Of course, they'd have to drop the amount of their check into conversation and you'd have to know their personal details like if they're married or not and if they have dependents.

The vast majority of you think that talking about salary with co-workers is a big no-no, but if you're really dying to know this could be a way for you to determine about how much your co-workers are making without asking them outright. Don't go asking the whole office how much is each person's rebate check, but you're not doing anything terribly wrong by tracking the details your co-workers volunteer. Find out the clues you should be looking for when you read more

Keep in mind the phase-out reduction: If someone earns over $75,000 and has no dependents, their check will be 5 percent less for every dollar made over $75,000. For married couples filing jointly, the phase-out starts with a household income of $150,000 and those without dependents and making $165,000 will barely see a rebate.
Rebates vary widely depending on the person's income, marital status, and number of dependent children. You can't make accurate assumptions about their salary unless you know this personal information. Fortune gives this example: The $12,000-a-year receptionist, single with no kids, may get a rebate of $325, while the $80,000-a-year manager, also single with no kids, gets hit with the phase-out and ends up with a rebate of just $350.
The IRS website gives detailed information for different payment scenarios, like married with qualifying dependents, single with no dependents, married filing separately, etc. The site also gives exact phase-out amounts, and the thorough information is enough to figure out your co-worker's approximate paycheck.

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Your State May Tax Your Rebate Check

SavvySugar — Fri, 07 Mar 2008 14:36:02 -0800

Just when you thought you were getting the hang of this whole rebate check thing, some states are adding more confusion to the mix by announcing that they'll be taxing the federal stimulus checks. Your rebate check won't be taxed on the federal level, but your state could decide to tax the checks as part of your personal income tax. Many states haven't reached a decision one way or another, and it's possible that they won't have any news in this regard until tax time next year when we're filing our 2008 taxes. A handful of states have already given their residents a heads up about what they can expect next year. To find out if your state has come to a taxing conclusion just read more.

New York won't be taxing the rebate checks because, as explained by NY Governor Eliot Spitzer, "During these challenging fiscal times, it is particularly important for all New Yorkers to know that they will retain the full amount of this rebate, and will not be taxed on these amounts next year.” Oregon, Iowa, and California have all followed suit and will not be taxing their residents on the stimulus rebate checks.

If you live in Alabama, it seems your state is planning on taxing the checks because its budget could use the $55 million it would receive from doing so. And if you're sitting on the edge of your taxpayer seat and can't wait for your state to make an announcement, Bankrate has a directory of every state's department of revenue along with phone numbers and you could try giving them a friendly call. You know, just to check in.

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Your Pink Slip Could Qualify You For a Rebate Credit

SavvySugar — Wed, 19 Nov 2008 04:30:34 -0800

Just when we'd all but forgotten about those rebate checks many of us received this Summer, the subject is coming up again now that we are approaching the year's end. Now is the time when many Americans begin to organize their documents for the upcoming tax season - can you believe the April deadline is just five months away? As you are entertaining the idea of filing your tax return, keep in mind that there could be more money headed your way than you'd thought.

If your 2007 return didn't qualify you for the initial wave of economic stimulus checks or you received less than the maximum amount, you may be eligible for a recovery rebate credit on your 2008 return (to be filed in 2009). If a job loss has reduced your annual income to meet the stimulus check thresholds or your income fell for some other reason, you would qualify for the rebate credit. The IRS will have tools on its website to help taxpayers determine their recovery rebate credit.

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What to Do If You Received Too Big of a Rebate Check

SavvySugar — Wed, 18 Jun 2008 04:07:10 -0700

You'd think the issuance of rebate checks would be smooth considering this isn't the first year they've been sent to encourage taxpayers to spend, but there have been several bumps in the road to stimulation. While this error certainly isn't as bad as sending rebate checks to incorrect bank accounts, it does require the attention of those rightfully receiving payment.

Several Americans have been overpaid with doubled rebate checks while many others are still waiting to receive their checks. Find out what to do if you've been overpaid when you read more.

Some people will receive an additional check because they didn't get the $300 child credit like they should have, and in those cases the checks can be deposited without hesitation. If you receive an additional stimulus check don't cash it and return the check to the IRS.

According to the IRS, you should write VOID on a paper rebate check and return it with a note to the IRS center where you filed your tax return, and if you e-filed or a tax professional filed for you simply visit the IRS website and locate the appropriate address. You should notify your bank if you received the erroneous payment through direct deposit and they will fill you in on the proper procedures.

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How Other People Spent Their Rebate Check

SavvySugar — Tue, 27 May 2008 11:28:25 -0700

Millions of Americans have already received their rebate checks and have decided the fate of their government-sponsored windfalls. Predictably, my rebate check went straight to my credit card, but other people found more exciting ways to spend their checks and documented their choices on a website called How I Spent My Stimulus Check. Complete with photos, rebate check receivers shared their spending choices for anyone who cares to see. I've selected some of the various and random ways other people spent their rebate check, just click "Start Slideshow" to check them out!

View Slideshow ›

Didn't Get Your Rebate Check Deposit Yet? You May Be Waiting Until July

SavvySugar — Mon, 19 May 2008 04:16:40 -0700

The IRS has run into a few snafus in sending out rebate checks on a supposedly earlier than planned schedule, and the most recent glitch may have some people who were counting on that check feeling rather frustrated. According to South Florida's Sun-Sentinel and Miami's CBS4, if you didn't see your payment deposited into your bank account by May 16, you may have to wait until as late as July 11 to receive your check and it will come in the form of a paper check. That is, if your rebate wasn't mistakenly deposited into someone else's bank account. If you have questions regarding your rebate check, the IRS's rebate hotline is 866-234-2942.

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When to Expect Your Rebate Check

SavvySugar — Wed, 19 Mar 2008 14:28:05 -0700

The IRS has put together a schedule for when you'll be receiving your economic stimulus rebate check. The schedule is based on the last two digits of your Social Security number, so if you're filing jointly use the primary filer’s Social Security number to figure out where you fit on the schedule. It's possible that the IRS won't exactly meet the projected dates since 130 million households are eligible to receive the rebate check, but at least you can start planning ahead for that hefty credit card payment, savings deposit, vacation fund deposit, or shopping trip.

If you file your tax return and provide direct deposit banking information for the IRS to transfer your return, you'll be receiving your rebate check slightly earlier than those who receive their return in the mail. If you're unsure about your eligibility to receive any economic stimulus money, the IRS just introduced a calculator that lets you figure out if you'll be getting a check and the amount, if any. To see a handy chart that tells you when you're scheduled to receive your rebate check just read more.

Direct deposit payment

Last 2 Digits of SSN	Date Check Will Be Sent
00-20	May 2
21-75	May 9
76-99	May 16

Paper check

Last 2 Digits of SSN	Date Check Will Be Sent
00-09	May 16
10-18	May 23
19-25	May 30
26-38	June 6
39-51	June 13
52-63	June 20
64-75	June 27
76-87	July 4
88-99	July 11

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More Rebate Check Details

SavvySugar — Tue, 06 May 2008 04:24:44 -0700

TeamSugar member frevirg pointed out one aspect of the rebate check schedule that I hadn't yet highlighted. While I paid for my tax service as soon as my tax return was filed and used my bank account, some tax services allow filers the option of having those fees taken directly from their tax refund. Frevirg was proactive and navigated around the TurboTax website, and found the following information that may be useful to some of you.

Under certain circumstances, however, the IRS has decided that taxpayers can only get their rebates by mail, even if they get their refunds by direct deposit. At TurboTax, this will happen if you use a "refund transfer" when filing your 2007 return. This service lets you pay for your tax preparation and/or e-filing from your refund proceeds, for an additional fee...

It really took some digging around on the site to find this information and not because it's unorganized. There are a lot of questions and answers surrounding the rebate check, so when you're poking around for answers be sure to take your time and read carefully. The IRS website has a wealth of information regarding the checks, which makes it a good place to check-in, so to speak.

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