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Save it or spend it: What will you do with rebate?
Published Wednesday, April 30, 2008
The IRS has begun dispersing the economic stimulus checks, which has Fergus Falls residents planning how to spend—and save—the money.
Lyle Hauck, manager of Radio Shack in Fergus Falls, has increased the store’s inventory in preparation for what he expects to be a slight increase in sales.
“We’re excited about what is happening here. Hopefully it will spur the economy more.”
In Fergus Falls, with an estimated 5,000 households receiving an average of $1,000 each, the local economy will receive about $5 million in new cash in the coming weeks.
Radio Shack will accept stimulus checks directly and will award a 10 percent discount for those who sign checks over for the purchase of a television. Wal-Mart will cash the checks for free at its stores and Kmart will give customers a 10 percent bonus to those converting their stimulus checks to a Kmart gift card. Home Depot is encouraging consumers to invest the money into their homes and will have special buyer incentives on home items at its stores.
Fergus Falls consumers are ready for the checks to arrive in the mail.
The new 2008 40-60 inch LCD and plasma television models came out last week, just in time for the highly anticipated rush. But not everyone will take advantage of the spending oppurtunty.
“I’m probobly paying off bills. I’m not buying a television—not going to blow it,” said 20-year-old Marie Fouquette.
First time home-owners Steve and Sarah Moline said the check will help them with their new purchase. They’ve noticed who people in their age group — mid 20s — are split when it comes to what to do with the money.
“I know some people that talk about doing that [buying a television] but more people talk about saving it,” Steve said.
Warren Burris, 52, works at the Recycling Center in Fergus Falls. He said he hasn’t put much thought into what he and his wife are going to do with the money, but they’re more than likely to spend.
“I guess we haven’t discussed what we’re going to do with it. I think we’re going to save it, maybe for a vacation.”
According to the Minnesota Department of Revenue, Minnesotans are expected to receive $1.8 billion from this year’s federal stimulus payments.
The IRS began dispersing the checks Monday to people who requested payments via direct deposit into their bank accounts.
Order of dispersment is determined by the last two digits of an individual’s social security number, starting with low numbers. Paper checks will be mailed out starting May 9.
Individuals who filed their 2007 income taxes on time and earned at least $3,000 last year will be eligible to receive up to $600. Married couples will receive up to $1,200. Parents will receive $300 for every dependent child under the age of 17.
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.Posted by imjustagirl (anonymous) on April 30, 2008 at 1:04 p.m. (Suggest removal)
FYI: The IRS website says they will start mailing out checks starting May 16th through July 11th.
Posted by kmiles (anonymous) on April 30, 2008 at 1:18 p.m. (Suggest removal)
FYI: The IRS is ahead of schedule, they will start mailing out checks starting May 9. The Journal is correct.
http://money.cnn.com/2008/04/24/pf/taxes...
Posted by ffboyds (anonymous) on April 30, 2008 at 1:21 p.m. (Suggest removal)
That has since changed...this article actually has it right with May 9th. With the help of a computer program, they were able to start the dispersments earlier than expected. Check out the Minneapolis Star Tribune website sometime. It's a great wealth of information.
Posted by DevoBill (anonymous) on April 30, 2008 at 1:50 p.m. (Suggest removal)
Buy silver and gold with the money.
Posted by prowler (anonymous) on April 30, 2008 at 1:53 p.m. (Suggest removal)
I would be extremely shocked to find 5,000 households that will be getting back an average of $1,000 per household in Fergus Falls. If you subtract the number of households that are getting nothing for a rebate from the 5,633 (according to wilkipedia) in Fergus, you almost certainly will not come up with 5,000. A large number of residents will not get any rebate because they exceed the income limitations. Just another Democratic tax on the ant to support the lazy grasshopper. Just my opinion, no applause necessary.
Posted by imjustagirl (anonymous) on April 30, 2008 at 2:01 p.m. (Suggest removal)
Mmmm...a grasshopper sounds good. I'm going to get some creme de menthe.
Posted by bucksteel (anonymous) on April 30, 2008 at 2:35 p.m. (Suggest removal)
prowler - the 2006 income distribution study for the FF School District shows that only 3% of residents have a household income over $150,000, and that 6.8% have household income between $100,000 and $149,999. So, just under 10% of families bring in over $100,000. The tax rebates are for couples with family income less than $150,000 (partial rebate up to $174,000), and single persons with income less than $75,000 (partial rebate up to $87,000). So I think the numbers are accurate for the City, and may be conservative (for the western part of the county) when you consider that there are probably another 5,000 or so households in the surrounding area that contribute to our "local economy". That could be an additional $5 million, depending on how you define "local".
Posted by Lala (anonymous) on April 30, 2008 at 2:47 p.m. (Suggest removal)
Well I'm sure most of mine will end up going into my gas tank to get around this summer since gas prices supposed to be going to around $5.00 per gallon!
Posted by freda (anonymous) on April 30, 2008 at 2:48 p.m. (Suggest removal)
Does anybody know if that is a child under 17 in 2007 or on April 15?
Posted by tsy86h (anonymous) on April 30, 2008 at 4:01 p.m. (Suggest removal)
I am wondering if I I am understanding you correct prowler. Are you saying that because I don't make as much money as you that I am lazy? My husband and I work very hard, but we do not exceed the limit set by the goverment to receive the full rebate that they are giving out.
Posted by tsy86h (anonymous) on April 30, 2008 at 4:02 p.m. (Suggest removal)
I will hold my applause
Posted by bucksteel (anonymous) on April 30, 2008 at 4:17 p.m. (Suggest removal)
freda - IRS definition of a "qualifying child" uses 12/31/2007 - so if they were under 17 at the end of 2007, they will qualify for the $300.
Posted by PeterJennen (anonymous) on May 1, 2008 at 7:52 a.m. (Suggest removal)
Go figure, I plan on using ours to pay taxes!
Posted by just_peachy (anonymous) on May 1, 2008 at 11:48 a.m. (Suggest removal)
I feel your pain PeterJennen, I think I will have about $50 left after I pay the loan back that I had to take out to pay our taxes---just enough to put gas in my tank--but on the "glass half full side", at least I wont have to have to pay on a loan for a year!! Sorry Prowler that you and your six figure income didnt qualify for the rebate, rest assured that there will be a ton of sympathy sent your way from the rest of us "pathetic lazy working class grasshoppers" who are supporting our families on less than $150,000 a year!!
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