Posts Tagged ‘direct deposit’

The object of the stimulus bill is to inject cash into the economy as quickly as possible. Rebate checks will not go out before May or June, but there is a more direct way to get money in circulation. Many who file online and get a refund have the money direct deposited.

Since the Stimulus Act uses 2007 income figures, as soon as 1040’s are e-filed, deposits could be shot out to the taxpayer’s bank with appropriate rebate added. Then there are the millions of Social Security recipients who get their checks direct deposited every month. Why would you print and pay postage on those? Oh, that’s right, it appears retirees are not included in the stimulus unless they have income.

Can you say “Catch 22?” Apparently withdrawal from 401-K, which is treated as income in every taxable sense, will not count. Be that as it may, Washington could save us all money and get the economy goosed much quicker by using direct deposit where possible.

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