If your “Economic Stimulus Payment Notice” has not come in the mail yet, it might be on the way. More than 130 million American households are getting rebates, and I just found out that $600 is on its way to yours truly.
Here's where my rebate will be going: my car.
Yesterday, I brought my car in for its 30,000 mile tune up. When I left, I'd added a total of $717.67 on my credit card. Dang.
I felt like I needed an oil change after that.
BabyCenter blogger Beth Hering explains in "How will you spend your tax rebate?" that according to the Chicago Tribune, the general breakdown is $600 for individuals earning $75,000 or less, and $1,200 for couples earning $150,000 or less. Additionally, you'll get $300 for each dependent child.
For a single mom like me, what to with my rebate is a no-brainer. No, it's not going towards those new hot leather sandals. In her recent post, "What to Do With Your $600 Tax Rebate?" About.com's Jennifer Wolf says, "I understand that the purpose of this plan is to get more money into the hands of American families so that more cash can be pumped into our economy."
But before you buy that big screen TV, Wolf asks single parents to pause and ask: Do you have any outstanding bills that need to be paid?
Good question. In fact, I cut our cable plan to the cheapie "limited" schedule in order to save some cash right now. My car registration is up for renewal, not to mention the balance on my credit card I need to pay off.
(By the way, if you're in the middle of a divorce, make sure that you've crossed all your Ts when it comes to taxes.)
As a single parent, putting that extra cash in an emergency savings fund is a smart idea. Or, maybe you can start saving up for your child's summer camp? I am.
Do tell: Where is your rebate going?