Bush to sign stimulus package Wednesday

Bush to sign stimulus package Wednesday
President said he's looking forward to signing $170 billion economic stimulus package passed last week by Congress. Consumers could see tax rebate checks by May.
February 11 2008: 3:22 PM EST


NEW YORK (CNNMoney.com) -- President Bush said Monday he is pleased with the $170 billion economic stimulus package passed by Congress last week. The White House announced that he plans to sign it Wednesday (correct).

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The package will pay most individual taxpayers $600 and $1,200 for married taxpayers filing joint returns as long as they are below income caps of $75,000 for individuals and $150,000 for couples. There is also a $300 per child tax credit.

Those rebates will put about $120 billion in the hands of individuals in the hopes that they will spend it and boost a faltering U.S. economy.

Bush made his comments as he signed an in-depth economic outlook prepared by the Council of Economic Advisors. That report forecasts that the economy will be in for a period of slower growth this year, but should be able to avoid a recession.

But there have been other reports in recent weeks showing increasing signs that the U.S. economy has already slipped into a recession.

---------REBATES: WHAT YOU NEED TO KNOW---------
http://money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm

Do I qualify for a rebate and how much can I expect?

One-time rebates will be sent to at least 117 million low- and middle-income households, 20 million senior citizens living off of Social Security, and 250,000 disabled veterans.

To be eligible for a full rebate, single tax filers must have 2007 adjusted gross income (AGI) below $75,000 and joint filers must have AGI below $150,000.

Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized."

:cry:

I retired on 9-06. To offset the tax bite, in 1-07 I withdrew money from my 401K and paid off my house. Apparently the 1099R is going to count as earned income. I'm over the max cap. Well........at least my house is paid off. Have both mine and my wife's pension with no major expenses.