Six Figures and Broke » Income Tax http://www.6figuresnbroke.com Getting Out of Six Figures of Debt with a Six Figure Income Wed, 15 Oct 2008 18:45:32 +0000 http://wordpress.org/?v=2.5 en A How To Guide for Spending the Tax Rebate Check http://www.6figuresnbroke.com/2008/04/a-how-to-guide-for-spending-the-tax-rebate-check/ http://www.6figuresnbroke.com/2008/04/a-how-to-guide-for-spending-the-tax-rebate-check/#comments Sat, 26 Apr 2008 17:58:25 +0000 BigSpender http://www.6figuresnbroke.com/?p=22 SHARETHIS.addEntry({ title: "A How To Guide for Spending the Tax Rebate Check", url: "http://www.6figuresnbroke.com/2008/04/a-how-to-guide-for-spending-the-tax-rebate-check/" });]]>
As I was spending my time reading a variety of websites today, I cam across on article on CNN.com that talks about how different people in the United States plan to spend their tax rebate checks.  The news reported in the past few days that the first of the economic stimulus payments are going out early in hopes of stimulating the economy now, instead of a week later like the original plan.  I’m not sure if that extra week is going to make a bit of a difference but hey, if it makes life easier for some to get their check early then that sounds good to me.

CNN features seven Americans and their plans for the rebate checks:

  • Mark from Georgia will be paying off bills.
  • Laura from California will be paying off back taxes with hers.
  • Kathryn from New York discusses how two of her working children won’t get the checks but they could use them.  She claims them on her tax return as dependents so neither the parent or the child will receive payment. 
  • Melissa from Wisconsin is in a financial bind with rising food prices and hopes to use the money to get ahead.
  • Trista from Minnesota is planning to donate a portion of her rebate check to charity.
  • Tana in Georgia is taking her daughter on a vacation in celebration of her graduation from elementary school having made straight As.
  • Karen from Washington will be putting her payment towards starting a small business that will be run during her retirement.

I don’t see much in the way of economic stimulus here.  The last two will be putting the money back into the economy.  If this is a good representation of what Americans will be doing, then about 28% of the checks will be spent on non-necessities while the remaining 72% will either be donated or used to pay down debt or help ease a financial crisis.

Ours is going towards my future education.  I’m not sure if that stimulates the economy but in the long run, it is going to stimulate my economy.

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    ]]>     http://www.6figuresnbroke.com/2008/04/a-how-to-guide-for-spending-the-tax-rebate-check/feed/     2008 Economic Stimulus Payment Information http://www.6figuresnbroke.com/2008/04/2008-economic-stimulus-payment-information/ http://www.6figuresnbroke.com/2008/04/2008-economic-stimulus-payment-information/#comments Mon, 14 Apr 2008 18:30:43 +0000 BigSpender http://www.6figuresnbroke.com/?p=14 SHARETHIS.addEntry({ title: "2008 Economic Stimulus Payment Information", url: "http://www.6figuresnbroke.com/2008/04/2008-economic-stimulus-payment-information/" });]]>

    Creative Commons LicenseThe time is quickly approaching for the 2008 Economic Stimulus Payments to be processed.  Tomorrow is tax day and the deadline to file your 2007 Income Tax.  Even those individuals who wouldn’t usually file a tax return (some disabled individuals, veterans, etc) need to be sure to file for 2007 as the 2008 Economic Stimulus Payments will only be sent to individuals who filed a 2007 Income Tax return. 


    Here is the payment schedule taken directly from the IRS website.

    DIRECT DEPOSIT
    Last two SSN digits:      Payment will be transmitted:
     00 through 20              May 2
     21 through 75              May 9
     76 through 99              May 16
     
    PAPER CHECK
     Last two SSN digits:     Payments will be mailed by:
     00 through 09              May 16
     10 through 18              May 23
     19 through 25              May 30
     26 through 38              June 6
     39 through 51              June 13
     52 through 63              June 20
     64 through 75              June 27
     76 through 87              July 4
     88 through 99              July 11

    If you are married and filed a joint return, the social security number of the first person listed on the return will be used when determining the payment processing date.

    With payments starting at $300 and going up from there, the stimulus package was enacted in order to stimulate the slowing economy.  For information on how much you will be receiving, visit the IRS Economic Stimulus Payment Calculator online.

    Here at the Six Figures and Brokehouse, we will be putting the payment into our savings account to pay for my Fall 2008 tuition.  Although we originally intended to pay down debt, I decided to take more courses than I originally planned for as I’d rather finish up my degree sooner vs. later.  Our refund will cover my courses and books for the entire semester.  I’m not sure if that is going to help stimulate the economy but it will help stimulate our household’s future economy.  No more student loans for me, please!

    photo credit: pfala

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    ]]>     http://www.6figuresnbroke.com/2008/04/2008-economic-stimulus-payment-information/feed/     Tax Refund Deposited and Most Used to Pay Down Debt http://www.6figuresnbroke.com/2008/02/tax-refund-deposited-and-most-used-to-pay-down-debt/ http://www.6figuresnbroke.com/2008/02/tax-refund-deposited-and-most-used-to-pay-down-debt/#comments Sun, 24 Feb 2008 20:35:51 +0000 BigSpender http://www.6figuresnbroke.com/2008/02/tax-refund-deposited-and-most-used-to-pay-down-debt.html SHARETHIS.addEntry({ title: "Tax Refund Deposited and Most Used to Pay Down Debt", url: "http://www.6figuresnbroke.com/2008/02/tax-refund-deposited-and-most-used-to-pay-down-debt/" });]]>
    We are using the “debt snowball” method of attacking our debt.  Some financial gurus suggest paying the highest interest rate debt first (Suze Orman) as it saves you money in the long run.  Others suggest paying your smallest bill first as it will motivate you to keep “gazelle intense” as you pay it off (Dave Ramsey).  We’re kind of doing a bit of both.  All or our little payments are going on to the highest interest rate card (a whopping 7.99%); so if I sell some books on half.com, once the money is deposited into my account I log on to the website and make a payment in the exact amount.  With our “lump sum” type payments we’re paying off smaller cards. 


    Creative Commons License photo credit: danesparza

    We received our tax refunds this past week, a total of almost $7,000 between state and federal.  Obviously our withholding was wacky so I’ve adjusted it accordingly.  We took $5100 and paid off one card completely, woohooo.  In the past we’d have spent all of the money on something completely frivolous.  This year we’re only taking part of it for frivolousness.  :)  The other $1900 or so is set aside for a three night trip to Vegas. 

    My husband has three nights comp’d at the Wynn Las Vegas so we’ve scheduled my parents and sister to watch the kiddos and we’re going out of town for tons ‘o fun.  Of course those that are following Ramsey’s plan would scoff at such silliness but I heard Ramsey on the radio the other day say that if the money for the vacation wasn’t an exorbitant amount when compared to annual income it is OK to put the snowball on hold if the vacation is paid for in cash.  I believe the caller was wanting to celebrate a 10 year wedding anniversary; well hubby and I have been together for ten years now (married for 7.5) so yes, we’re going to Vegas to celebrate our own 10 year anniversary of sorts.
    Creative Commons License photo credit: Zesmerelda

    I have a pie chart up over at NCN Network showing the progress on our debt.  This isn’t *all* of our debt - I didn’t include our car nor my student loans.  Two years ago we purchased a “luxury sports coupe” - love that car, I call it my mini-van.  I can’t bring myself to put it up for sale although the $800/month it would free up would certainly make paying down the debt go much more quickly.  Perhaps I’ll have a change of heart in the coming months, we’re still new to this change of lifestyle.

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