Read this if you’re running late on your taxes
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If you’re running late filing your taxes, don’t worry.
Get an automatic 6-month extension by filing a simple IRS form.
And if you still haven’t picked up a copy of the 2008 Tax Makeover Guide, check it out here:
My college roommate JRK sends me some interesting thoughts about the upcoming government tax rebates from an MIT report. As usual, it’s not just about rationality, but about the form in which the money is delivered (debit card vs. check):
- [The 2001 tax rebates] “show that taxpayers spent about two-thirds of their rebates within six months of receiving checks.”
- “The 2008 rebate program is aimed at low-income households, because these households are the least likely to save the rebates.”
- “…rebates that are received as electronic deposits may seem less like spendable cash, and more like potential savings, than checks that taxpayers receive in the mail”
- “I suspect that giving people a prepaid debit card will do more to rejuvenate the economy than mailing out checks, but direct deposits wouldn’t be nearly as effective,” Ariely said in a recent commentary for the Marketplace radio program. “I also suspect that if we added a line on the debit card that reads ‘spend the government’s money’ this would work even better.”
- “If consumers save rather than spend the money, there will be no stimulus”