Compare Mortgage Rates For Free

April 28^th, 2008 – The federal government will start to send out tax rebate checks today.

The tax rebates are $600 for an individual, $1200 for a couple and $300 additionally for each dependent child. To find out exactly how much of a rebate you will receive, use your tax return to fill out the Economic Stimulus Payment Calculator. The payments will start to be delivered by direct deposit today, and the checks will be mailed out May 9^th.  Over five million taxpayers will see the rebate directly deposited this week and over 130 million will receive checks over the next eight weeks.

The rebate checks are the primary part of the $152 billion stimulus package that was passed in February.  The government is providing the rebates in hopes of offsetting the slowing economy due to the housing, mortgage, and credit downturn. Most economists expect the impact to be relatively small but will mildly help consumers offset rising oil and food prices.  Some criticisms of the stimulus package are that the benefit will be minor and temporary, and the government is purely borrowing the money and thus increasing the federal deficit.

In an analysis of the 2001 rebate checks only about 25% will be spent on purchases, while the remainder will be used to increase savings or reduce debt. Several retailers have offered up to a 10% added value to gift cards purchased using the rebate checks.  Albertsons, Jewel-Osco, Sears, Kmart, Lands’ End, Walmart, Best Buy, Kroger, Staples and Home Depot all are offering similar incentive programs to encourage people to spend the rebate checks in their stores.