A new billion-dollar economic stimulus package could see tax rebate cheques mailed out to millions of American families by spring.
The $150 billion package was tentatively agreed on by the US House of Representatives and the White House on Thursday after President George Bush called for action to boost the country’s sagging economy.
It aims to stimulate consumer spending through direct tax relief for American taxpayers and tax incentives for businesses.
Under the plan, 117 million families will receive one-off payments similar to tax rebates. Most single taxpayers will get up to $600 and married couples up to $1200, plus $300 extra per child. Payments will phase out for individuals earning more than $75,000 and couples more than $150,000 a year.
Americans who paid no income tax last year but earned at least $3000 will get $300 and double for couples.
The bill still needs approval in the Senate, but if passed cheques should be issued 60 days after the President signs off a law authorising the one-time payments – probably in the next four to five weeks.
How fast the cheques can be issued to tax payers may depend on how busy the IRS is with the tax-filing season for 2007 tax returns, which is now underway.
Have you filed your 2007 US tax return? Fill in our US Tax Refund Form to get your application underway today.