Tax Refunds & Advice

Although the tax filing deadline for 2007 is still a week or so away, approximately 47 million taxpayers have already filed. According to the Internal Revenue Service, almost $107 billion in refunds have already been claimed. As you can imagine, there is plenty more to come as millions more rush to file before the deadline.

The average refund to this point is $2,708, as reported by the IRS. Although taxpayers receive the same refund no matter how they file, this year has been the most popular for the e-filing option. Of the almost 47 million who have already filed, 38 million have done so electronically. This is an increase of five percent over last year’s number at this time.

Although many use the e-filing method through their tax professional, there is a growing group who has decided to rely on this option when filing on their own. Approximately 12.3 million taxpayers have filed electronically from their home computer. When compared to last year, this is a 14 percent increase. What does this say? Simply put, those who are doing their own taxes are finding it simpler to use the internet to file as opposed to the old method of paper forms.

With April 15 closing in, more and more taxpayers will file as to avoid a penalty. As this happens, the number of refunds is sure to grow exponentially. If you have yet to file, get started right away. You do not want waste your refund money on late fees, do you? 

This year, millions of people will be receiving a tax rebate from the IRS. To go along with this, just as many will receive an economic stimulus rebate as well. As you can imagine, there are many ways that you can spend this money. The question is: how are you going to proceed? When it comes down to it, you want to be smart when it comes to using your tax rebate.

Here are three common ways to use your tax rebate(s) when it arrives in your mailbox in a few months:

1. Save, save, save. If you do not know what to spend your rebate on, why not put it in the bank? Although this is not the fun thing to do, it is always nice to have some extra cash in the bank.

2. Pay down debt. This is just as boring as putting the money in the bank, but it can be a great way to spend your tax rebate. When you pay down debt you will be able to relieve some of the pressure on your finances, while also avoiding costly interest charges.

3. Buy something that you have had your eye on. Do you want a flat screen television for your game room? How about a new outfit? There is nothing wrong with spending your tax rebate on something frivolous. After all, it is your money to do with what you please.

You can use your tax rebate and/or economic stimulus check in a number of different ways. Just remember to be smart with this money. It is not often that you get a check from the IRS!

Most Americans who qualify for an economic stimulus rebate will not have to do anything other than file their 2007 individual income tax return to receive their payment this year.

Most people are well aware that the Treasury is planning to send economic stimulus tax rebates to more than 130 million Americans. Although there is no way of knowing when your rebate will arrive in the mail, plans are for the checks to be sent throughout the late spring and summer months.

Generally speaking, you do not need to do anything in order to receive your payment. As long as you file your 2007 tax return as usual, you will be in line to receive your check when the time comes. In other words, the entire process is automated, which saves individuals from completing lengthy applications or directly contacting the Internal Revenue Service. As with similar rebates in the past, not everybody will receive the same amount. There is a maximum payment of $600 for individuals or $1,200 for those who file a joint return; the minimum is $300 or $600 for joint returns. Even if you do not think that you earn enough money, you will still want to keep an eye out for a rebate. If your tax return shows income in excess of $3,000, it is safe to say that you will be receiving $300 at the very least.

Parents who are eligible for this payment will receive an additional $300 for each child, with no cap.

Of course, there are income limits that can change the amount you receive. For individuals earning more than $75,000, five percent of the amount exceeding this threshold will be deducted from the payment. For joint filing, the maximum income is $150,000. 

As you can see, there are a few stipulations that will determine how much of a payment you receive. With that being said, more than 130 million Americans will receive an additional rebate by the end of summer. 

For further information on the economic stimulus plan, visit: http://www.irs.com/news/stimulus-rebate-2008.htm