President Bush has now signed the multibillion-dollar economic rescue package that will mean $300 to $1,200 rebates for many American households, depending on their tax bracket and claimed dependents.
While the refunds will probably not arrive for a few months, the unexpected check from Uncle Sam could be your ticket to jumpstart your savings or pay down your debt.
What will I do with my rebate check? Already the wheels in my mind are turning – that’s a nice chunk of change. And it’s my civic duty to spend it, right? Maybe, but look at it another way – if you use it to reduce your debt it could help the economy in the long run better. With less financial burden on each individual we’ll be freed up to make bigger spending plans in the future. For example, the $200 credit card payment I might eliminate can be put into a savings account and spent later on a family vacation or a down payment on a new hybrid vehicle.
An Associated Press poll found that only 19 percent of those surveyed said they planned to spend their rebate checks. Forty-five percent said they would pay bills, while 32 percent said they planned to invest the money.
Consider using the unexpected income to pay off debt or increase your savings. Click here to learn the best way to handle a financial windfall, and visit www.FeedthePig.org for more money-saving tips.
Wednesday, February 13, 2008
Thursday, February 7, 2008
IRS Warns of Rebate Scams to Steal Personal Information
I am sure that most of you are patiently waiting for a decision to be made on the economy stimulus package. The refunds could vary from three to twelve hundred dollars depending on your income level and how many dependents you have.
But, believe it or not this tax rebate has encouraged identity thieves to make more attempts at obtaining your personal information. The IRS is now warning everyone to beware of rebate scams to steal your personal information.
WASHINGTON (AP) -- Even before Congress passes an economic stimulus package, identity thieves are using promises of tax rebates to trick people into revealing financial and personal data, the Internal Revenue Service warned Wednesday.
Under one scheme, the IRS said, people are receiving phone calls telling them they can only receive a rebate if they provide bank account information for a direct deposit.
The tax agency stressed that it does not collect information by telephone and that no legislation has been enacted that would allow it to provide advance payments to taxpayers or that specifies the details of those payments.
The House last week, as part of an economic stimulus package, approved tax rebates of $600 and $1,200 respectively for most individuals and couples, with another $300 per child. The Senate is now considering a slightly different version.
The IRS also repeated past warnings of e-mails, supposedly coming from the agency, where people are asked to enter personal information on a form needed to obtain a tax refund.
A new scam, it said, involves an e-mail notification that a person's tax return will be audited with instructions to click on links to complete forms with personal and account information.
Businesses and accountants are also getting e-mails with instructions to download information on tax law changes. Clicking on these links could download "malware" onto the recipient's computer that gives the scammer remote access to the computer hard drive.
In another telephone scam, a caller claims to be an IRS employee who says the taxpayer has not cashed a refund check and asks the person to verify his or her bank account number.
On Tuesday, at a Senate Finance Committee confirmation hearing for Douglas Shulman, the nominee to be IRS commissioner, Sen. Charles Schumer, D-N.Y., expressed concern that taxpayers would be victimized by tax preparers and lenders who charge high interest rates for short-term advances on their stimulus rebates.
The IRS advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov.
By Jim Abrams, Associated Press Writer
But, believe it or not this tax rebate has encouraged identity thieves to make more attempts at obtaining your personal information. The IRS is now warning everyone to beware of rebate scams to steal your personal information.
WASHINGTON (AP) -- Even before Congress passes an economic stimulus package, identity thieves are using promises of tax rebates to trick people into revealing financial and personal data, the Internal Revenue Service warned Wednesday.
Under one scheme, the IRS said, people are receiving phone calls telling them they can only receive a rebate if they provide bank account information for a direct deposit.
The tax agency stressed that it does not collect information by telephone and that no legislation has been enacted that would allow it to provide advance payments to taxpayers or that specifies the details of those payments.
The House last week, as part of an economic stimulus package, approved tax rebates of $600 and $1,200 respectively for most individuals and couples, with another $300 per child. The Senate is now considering a slightly different version.
The IRS also repeated past warnings of e-mails, supposedly coming from the agency, where people are asked to enter personal information on a form needed to obtain a tax refund.
A new scam, it said, involves an e-mail notification that a person's tax return will be audited with instructions to click on links to complete forms with personal and account information.
Businesses and accountants are also getting e-mails with instructions to download information on tax law changes. Clicking on these links could download "malware" onto the recipient's computer that gives the scammer remote access to the computer hard drive.
In another telephone scam, a caller claims to be an IRS employee who says the taxpayer has not cashed a refund check and asks the person to verify his or her bank account number.
On Tuesday, at a Senate Finance Committee confirmation hearing for Douglas Shulman, the nominee to be IRS commissioner, Sen. Charles Schumer, D-N.Y., expressed concern that taxpayers would be victimized by tax preparers and lenders who charge high interest rates for short-term advances on their stimulus rebates.
The IRS advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov.
By Jim Abrams, Associated Press Writer
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