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In the News - April 2008
Spend your tax rebate and save it!
JONESBORO, Ark. - A tax rebate is scheduled to make its way to tax filers in
the next few months. With personal savings at an all-time low, many Americans
are in a quandary about whether to spend the money or save it, says Debbie DeRossitte, Craighead County extension agent with the University of Arkansas
Divison of Agriculture.
"The philosophy behind the Economic Stimulus Bill is to give the economy a
shot in the arm by having consumers spend the funds; however, for many who do
not have cash reserves, the temptation is to bank the money instead," DeRossitte
says.
"Since April is Financial Literacy Month, it seems appropriate to offer some
tips for spending your rebate and saving it too," she says. "Why not plan to
spend it in a way that affords you additional savings?"
She offers these suggestions that could make more than a $600 difference in
your life:
- Spend the money on an educational class to sharpen your employment
skills. For example, if your computer skills are minimal (or
non-existent), this could be your ticket to a better position and
perhaps greater job security.
- Use the rebate to add energy features to your home. The money you
invest in items such as additional insulation, fluorescent light bulbs
or a programmable thermostat could pay dividends over time in energy
savings.
- Perform preventative maintenance as a good investment. Investing
your rebate in needed repairs or maintenance for your vehicle could save
you money. A set of tires or a tune up may save you fuel costs as well.
- Prepare for an emergency. It may be something that you have
considered but have not acted upon. In the wake of recent tornadoes and
flooding, it makes sense to invest in creating an emergency pantry,
purchasing a weather radio or making other disaster-related purchases.
- Install smoke detectors, which may save you money on your property
insurance.
- Invest the money in your health! Your tax rebate might be invested
in a gym membership to get you on the road to wellness.
- Visit the dentist. If you have been putting off a needed trip to
the dentist, here is your chance.
- Use the money for a smoking cessation program. If you’re a smoker,
you could recoup your investment in less than a year.
- Make an early purchase of something that you know you’ll need. For
example, if you to need, or want, to upgrade your television to high
definition, buy one.
- Use your rebate for FUN! If you enjoy a hobby you might consider
making an investment in better equipment. Cameras, guns, cookware and
other hobby-related purchases often hold their value while increasing
your enjoyment.
- Consider donating the money to a charity such as a food pantry.
You’ll help many others, and you may be able to deduct the amount when
you file taxes next year.
CAUTION: Don’t spend your money before you get it!
"Not everyone will receive their rebate in early May," DeRossitte says. "The
last two digits of your Social Security number will determine when you’ll get
your tax rebate check - $600 for most taxpayers, $1,200 for couples who file
joint returns, plus an extra $300 for every child under age 17 claimed as a
dependent on 2007 returns."
The IRS said it hopes to pay the first 34 million rebates in the three weeks
beginning May 2, wrapping up stimulus payments owed to most tax filers by early
July.
For more information about saving money, contact your county extension agent.
The Cooperative Extension Service is part of the U of A Division of Agriculture.
April 11, 2008
Media Contact: Lamar James
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
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