Local residents awaiting tax rebates

Published 4:30 am Monday, February 18, 2008

By By Lydia Grimes – features reporter
Robert Baldwin plans to treat his tax rebate just as lawmakers hope he will: by spending it.
Under a plan approved by Congress and signed by President Bush last week, taxpayers making up to a certain threshold will receive tax rebate checks in late spring and early summer. The payments are an attempt to stimulate the sluggish economy.
The government hopes taxpayers will use the money - payments of between $600 and $1,200 - to purchase goods and services, an influx of cash that could stave off a recession.
But not all Brewton area residents plan to spend their windfall immediately.
Floyd Cain, a retiree who lives in East Brewton, doubts it will do any good.
His fellow East Brewton resident, Evans McPherson, said he could use the money.
“Right now I am out of work and it will be good to get some extra money,” McPherson said. “It will help my family a great deal.”
McPherson's wife, Leigh Ann, is employed, and she hopes the couple can use it to pay bills - and maybe a little extra.
Here's how the rebates will work: The IRS will use the 2007 income tax form to determine the amount of the payments. An individual filing for himself will receive $600 if his income does not exceed $75,000. A couple filing jointly with an income of less than $150,000 will receive a maximum of $1,200 and a minimum of $600. The IRS will also include a $300-per-child payment.
Most taxpayers will not have to do anything to receive checks. Qualified individuals who can expect to see a check from the IRS are those who have or will file an income tax return for 2007.
Taxpayers do not have to fill out applications, file any additional forms or call the Internal Revenue Service.
Brewton resident Linda McEwan said she believes the rebates are not enough to help the economy.
But her sister, visiting from Mobile Friday, had a very different take on the payment.
Priscilla West, who lives and works in East Brewton, plans to save her money, too.
Orlando Clack, who lives and works in Brewton, said he will be spending the payment wisely.
Checks are expected to be disbursed in May to more than 130 million Americans. The checks will go out through the late spring and early summer.
Most taxpayers will receive two notices from the IRS. The first will explain the stimulus payment program and the second will give the approximate timetable for payments.

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