I have been receiving a few emails from people asking a question similar to this:
If I owe taxes to the government for 2007, will I still receive the stimulus check?
Answer: YES. These refund checks had to be created somehow, so the government created a tax credit for 2008. Instead of being eligible to receive the tax credit in 2009 when you file your 2008 taxes, the government is advancing you the credit now to help stimulate the economy. It has no bearing on whether or not you owe taxes for 2007. You CAN use the money to pay off any back taxes owed to the IRS, but they aren’t going to just deduct what you owe from your stimulus check and send you the difference. The government wants you to put the money back into the economy by going on vacation, going on a shopping spree, or putting it towards a large purchase. However, I know that you all are smarter than that and you’ll probably use it to pay down debt or save for the long-term.
If you have any other questions about the stimulus check or anything else life or personal finance related, feel free to Contact Me, and we can work together to come up with an answer to your question.
