Tadd Mencer

Let’s start by linking you to the official CNN report HERE.

Now, since most of you won’t go read what was said there, let me recap.

They really are sending out stimulus checks. Yes, I know - it sounds amazing.

And we can use the money! Bills don’t pay themselves!

However, my largest concern was that it would come out of our next year’s tax refund - or just be taxed to crap. HOwever, according to CNN author David Goldman we won’t.

Will I have to pay it back?

No. And here’s why.

Your stimulus payment is a one-time tax cut - an advance on a credit you’ll receive on your 2008 return. You will not owe tax on your payment when you file your 2008 tax return, and it will not increase the amount you owe or reduce your 2008 refund.

They go on with some weird reasoning that I can’t wrap my non-numbers brain around:

“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.”

So there you have it folks. ‘Free’ money. Of course expect to hear people grip about how much they got or how the government is spending too much and so on. I doubt this will really make any real difference on the economy, but I’m happy to have it.

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Congress wraps up the details: $300 for retirees, $600 for most individuals and $1,200 for most couples. But wait, there’s more: It’s not really free money.

By Liz Pulliam WestonSome Americans are getting awfully excited about the prospect of spending their own money.

The $168 billion economic stimulus package just passed by Congress will ship checks of up to $600 for individuals and $1,200 for couples starting in May. Most households will get these checks, although individuals with adjusted gross incomes of more than $75,000 and couples making more than $150,000 will see less or nothing at all.

Additionally, families will get $300 per child.

The biggest change since the original proposal: Those who paid no income taxes will get $300 as long as they earned at least $3,000, including veterans disability or Social Security benefits.

An estimated 130 million taxpayers will share the rebate money.

Here’s what you need to keep in mind while you’re waiting:

This isn’t free money — for most people

To produce this cash, Congress created a one-time tax credit to reduce taxable income for most taxpayers this year.Normally, you wouldn’t see that cash until the spring of 2009, when you filed your 2008 return. But Congress wants to speed that money to you now, so checks will start going out in May.

[Hey, go read the rest of this »]

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