what are you going to do with stimulus payment

[humandraydel]

Savings. Although really it's replacing the $600 I spent on a 40" LCD HDTV. So I'm doing my part to stimulate the economy. Sort of.

[aurielle]

We won't even see it. We'll just get a nice letter from the gov't saying they intercepted it and applied it to back child support owed. Which is fine, that will help pay it off that much faster.

[getforfree]

I will treat is as an extra paycheck or bonus. All the income that exeeds my spending goes to savings and EF building.

[PauletteGoddard]

just wondering what are you going to do with stimulus payment?

Transfer it into yen, francs, silver, CAD and euros.
Or spend it on five weeks of full-time childcare this summer.

[zakity]

We are throwing it in our EF. Some of it might be used for a vacation this summer. We are talking about taking a trip down to see some of DH's relatives.

[Tree0164]

It will go towards our car downpayment fund. We will probably be buying a new to use car later this year.

[MonkeyMama]

Originally Posted by jIM_Ohio

Probably bigger ticket items we don't get at baby shower- like mattress for second crib, breast pump or similar.

We also got 3k back from federal refund in 2007, so adding 6k to that (3k exemption for each kid) 9k=$700/month, and that would go a long way towards funding diapers or IRAs as well.

With wife in hospital now, the overall budget has not been discussed yet.

Oh, I just caught this. You don't get $3k cash back for each kid. You take the exemption and multiply it by your tax rate to see how much you get back. ($7000 * 25% = about $1700 tax reduction for this year).

Then you get the child tax credit at $1k per pop. So add another $2k for that.

It's more like $4k than $6k. (Though certainly not bad).

Of course, if your income is over about $110k, then you don't get all the tax credits. So there is a lot to consider in figuring how much your taxes will lower with twins.

[jIM_Ohio]

Originally Posted by MonkeyMama

Oh, I just caught this. You don't get $3k cash back for each kid. You take the exemption and multiply it by your tax rate to see how much you get back. ($7000 * 25% = about $1700 tax reduction for this year).

Then you get the child tax credit at $1k per pop. So add another $2k for that.

It's more like $4k than $6k. (Though certainly not bad).

Of course, if your income is over about $110k, then you don't get all the tax credits. So there is a lot to consider in figuring how much your taxes will lower with twins.

AGI is 103k, taxable income is ~62k.
Which income is used to calculate the credits?

[tabbycat31]

going towards my Roth IRA for 2008. I don't think I can max it out, so any "found money" will go towards it.

[tifnglen]

Originally Posted by jIM_Ohio

AGI is 103k, taxable income is ~62k.
Which income is used to calculate the credits?

Not a CPA-but i think taxable is used for credits

I believe AGI comes from Income Minus Deductions but

[rduell]

Applying it toward the mortgage.

[creditcardfree]

Originally Posted by Tree0164

It will go towards our car downpayment fund. We will probably be buying a new to us car later this year.

Ditto. Honda Odyssey

[cheshirecat]

pay towards loan that i tranferred to 0% BC a month ago. we are putting all extra $ on that until it is paid off before time limit run out.

[moneybags]

Originally Posted by jIM_Ohio

AGI is 103k, taxable income is ~62k.
Which income is used to calculate the credits?

AGI is the number you look at to see if you are phased out, so don't make any more money .

[disneysteve]

Originally Posted by disneysteve

It depends. We're having our taxes done tomorrow. We don't believe in loaning the IRS money all year, so we owe come April 15. Once I know how much we'll owe this year, that may determine where the stimulus payment goes. Assuming we owe $2,000-$3,000 for taxes, the rebate will just go to help replenish the money used to pay the tax bill. Not too exciting, huh.

I thought I should update this response. As per my post earlier today on the Personal Finance board, we actually ended up getting a $3,000 refund so we owe nothing for taxes. Along with the stimulus payment, that's $4,500 coming in unexpectedly.

It usually takes me until the end of June to max the Roths for the year. Between the tax refund and the stimulus payment, I will definitely have them fully funded by May. After that, I'm going to attack our HEL. I'd like to have it paid off by the end of 2009 and this money will definitely help things along. The HEL balance is just over 10K now so repaying it by 12/09 should be no problem at all.

[huffydeb2003]

I will put it in savings.

[Hot dog]

I am hoping my 2nd mortgage will be done by then if not it will go there. Otherwise it may go toward a vacation. I am sure we will help out the economy in some way

[Snave]

Not getting one. Can't really complain because I go a buy-out fom my company so that money went to savings. But, of all years to be over!

[jodi]

It will either go in the EF (to replenish this year's Roth payment) or towards the 2008 Roth - not sure yet. But it will be saved either way, not spent!

[geojen]

I imagine it will go towards improvements to the house we just bought. It would be nice if we could use it to pay down a car loan, but I kinda doubt that will actually happen!