The truth behind the rebate checks

That $300-500 rebate check, part of the so-called economic stimulus package passed by Congress, is not free money!!!

It is an advance off your 2008 tax credit.

Congress implemented a one-time tax cut for income earned in 2008. Rather than delay the benefit of that cut until you file your tax returns in 2009, Congress is giving you the money now.

If you don't qualify now (either your AGI is below $3,000 or above $87,000,) but do qualify next year, you can still claim the credit when you file your returns for 2008. If you qualify this year, but not next year, congratulations, you win, enjoy your free money.

The government wants you to immediately inject your rebate into the economy by buying all those delicious consumables we love to write about. Saving or paying back student loans is not what they have in mind.

However, recent surveys showed that about 25% of Americans would spend their rebate check. The rest would put that money towards their bills.