2009 Stimulus Package

A lot of people have been asking about 2009 stimulus money. As you recall most people received a check (or direct deposit) last summer as part of the Bush stimulus package. For 2009, you will not be seeing in that format. For working folks, stimulus money will be received through reduced payroll tax withholdings. For social security recipients, you should have received additional money ($250 in most cases) by now. So ... that's your 2009 stimulus money.

Filing Your Tax Return

If you pay someone to prepare your tax return, avoid taking out refund anticipation loan. A refund anticipation loan is where you get your tax refund very rapidly, usually within one to two days of filing. You are actually taking out a loan, with your tax refund from the IRS as the collateral. While it is nice to have your money quickly, the fees and interest make these loans a bad deal.

You will be better off making adjustments to your W-4 with your employer so that you get more money throughout the year. Obviously you will get a smaller refund, but you will have your money in your own hands sooner, without paying interest or fees. Go to www.irs.gov to make out a new W-4, which will adjust your federal withholding. You can also adjust your state withholding as well.