Congress' revised stimulus package, which passed Thursday, February 7th, included some $168 billion dollars in tax rebates. The hope is that the allocated money, when placed in the hands of consumers, will stimulate the economy and either stave off or combat another American recession. In addition to the tax rebates, the plan included benefits for businesses, disabled veterans, and the elderly.
It is estimated that the proposed plan will impact over 130 million Americans. Their rebate checks will vary in size, but Congress, the President, and the Fed all hope that the checks will have that single, critical effect - stimulation of the economy.
So just how much cash can you expect to see coming your way?
Like so many taxation questions, the answer to this one will depend on how you are situated. If you make more than $75,000 per year, or are part of a couple with a combined income of more than $150,000, don't expect to see much in the way of rebate. But if you make less, you can expect a check for between $300 and $1,200. If you are a single filer, making less than $75,000, you can expect a check for about $600. If you are a member of a couple with a combined income of less than $150,000, expect about $1,200. And if you are a non-filer earning less than $3,000, expect to receive about $300.
If you are a business owner and fall into one of the above categories, you may benefit doubly. Under the plan, business will be allowed to write off up to 50% of the cost of new equipment and may also be able to make adjustments for losses experienced over the past year.
Of course, the stimulus plan will only work if consumers go out into the marketplace and, well, consume.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.