By Amy Dominello
Media General News Service

Already planning how to spend your tax rebate? You might want to hold off on blowing the windfall on a flat screen TV or new furniture.

The rebates are not yet a done deal. The economic stimulus package still has a big hurdle to clear—making its way through Congress.

While we dream about what to do with the money, here’s the lowdown on what to expect.

So when will I get my check?

If Congress acts quickly, checks could be sent out as early as May.

But the rebates first have to make their way through Congress and get President Bush’s signature. 

The House passed the economic stimulus bill Tuesday and it now goes to the Senate, where changes are likely. Differences would have to be reconciled, and the finished product sent to the president. He has cautioned Congress not to derail the package by adding to the bill.

Who will get the money?

Under the House bill, rebates would go to 117 million households. How much of a rebate you would receive depends on how much you paid in taxes in 2007.

Individuals with adjusted gross incomes of less than $75,000 would receive up to $600; couples filing jointly with incomes less than $150,000 would receive up to $1,200. The rebates would go down by $50 for every $1,000 over the income limits.

Got kids? You’ll receive $300 for each little tyke.

Didn’t pay taxes in 2007?

You could still receive a rebate plus the allocation for children. Individuals who had an earned income of at least $3,000 in 2007 will receive $300; couples would receive $600. Those earning less would not receive anything, and if your income comes solely from Social Security, you are not eligible under the House bill.

I’ve got my eye on a shiny new iPod. Good choice? 

First off, wait until you have the check in your hand—or at least until Congress and Bush approve the rebates. Financial advisers say you should take the opportunity to pay off debt and get your finances in order.

“Using that money to pay down some debt would be a good use of it,” said Scott Cole, an investment adviser for Cole Financial Planning in Bessemer, Ala.  “It’s not that fun. You don’t often get $1,000 or $1,500 in the mail.”

OK, what else do the financial advisers say?

If people spend the money, it could slow down a recession, economists and financial experts said.

But if people pay off bills or save the money, it will do little to help the economy.

In 2001, smaller rebates did boost the economy a bit. But experts worry that rebates are a short-term fix and we’ll end up paying for them down the line – with additional deficit spending or future taxes.

“There’s a cost here that a lot of people are ignoring,” said Janice Caudill, a finance instructor at Auburn University.

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