Economic Stimulus 2008
I read an article in the paper today that outlines the payment schedule for the upcoming “Economic Stimulus”. They are basing the payment schedule in the last two numbers of your Social Security Number. For households filing join returns, the first SSN on file will be used. It says that although Direct Deposit payments will be completed by May 16th, people with a SSN ending in 88-99 won’t have their checks mailed until July 11.
Everyone who earned at least $3,000 in 2007 and files a tax return is eligible for the payment. Lower income workers, veterans and other citizens with SS benefits who don’t usually file tax returns, will need to file a return to be eligible.
Rumors about the stimulus payment effecting future returns are false, and it won’t reduce next year’s return and you won’t have to pay it back. Payments will range from $300-$600 for people filing as single with no dependents, and $600-$1,200 for people filing join tax returns. Households will receive an extra $300 per child.
Direct Deposit Payment Schedule
SSN Ending in - To be received by
00-20 May 2nd
21-75 May 9th
76-99 May 16th
Paper Check Payment Schedule
SSN Ending in - To be received by
00-09 May 16th
10-18 May 23rd
19-25 May 30th
26-38 June 6th
38-51 June 13th
52-63 June 20th
64-75 June 27th
76-87 July 4th
88-99 July 11th
So I should be getting my payment by May 9th directly deposited in my account. (Why people go for paper checks for anything anymore these days is beyond me. When I worked at Terminix my co-worker used to do it because she said she didn’t trust it to be deposited correctly. Well…that’s why you keep track of these things. Direct Deposit is more convenient, more eco-conscious because you’re using less paper, and obviously you’d get your money faster in all sorts of ways).
So what should people do with their “Economic Stimulus” payment?
I tell you what you shouldn’t do. Spend it. At least not on things you don’t need. I saw the same pattern with tax returns. People received a hefty payment of their hard earned money, and spent it all on gadgets and absolute crap. Why do this to yourself? Not only are you filling your home and life with things you just don’t need, but you’re spending money that should be used with some amount of intelligence. Put it towards your debts, put it into savings so you have an emergency savings, invest it into your retirement. But for the love of the gods of personal finance, don’t fuck around with it like you are in a position to spend carelessly. Trust me, you aren’t.
My two choices for using this money to my best benefit are either 1. To put towards my car payment to help pay it off even quicker, or 2. Just tuck it away into emergency savings since I want to reach my $5k goal this year.
I could very easily spend this on a bunch of books off my wishlist, go out shopping for new clothes that I don’t need, go buy an ipod that I don’t need, or some such nonsense. But I don’t have those things now and I’m getting along just fine.
Instead of promoting consumerism by stimulating the economy, I’m allow myself to be more free by ridding of debt, or keeping a cushion available to make sure things are taken care of. I don’t know about you, but I’m not confident that things are perfect enough for me not to protect myself.
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