For years, my wife and I have treated our tax refund as a savings account, using it to fund travel or house projects. (Yes, I know how dumb I am to allow the IRS to rake off more than my fare share of income and hold it for months, but for undisciplined savers like me, 0% interest on some money is better than 5% interest on no money.)
Most Americans, have treated their rebate similarly. This year, however, the trend seems to be shifting away from splurging with tax refunds. More and more of us are using the money to pay down debt. According to the AP, 35 % of us are using of refunds this way, up 7% over last year. If you have a moment, why not add your intentions to the AOL poll?

This is, of course, of concern to the government in light of the upcoming one-time rebate coming next month. If we use this money to pay down debt or to build savings, it may not boost the economy as much as if we take it to Target or spend it on a Princess cruise.

Nonetheless, I can't in good conscience suggest our readers ignore credit card debt just to stimulate the economy. Paying down that 20+% interest is going to help your economy, and isn't the the central tenet of capitalism that acting in our own self-interest also benefits the larger community?

Still, I might allocate a small portion to a nice dinner and a movie. Just to do my part as a good citizen.

You'll note from my story earlier today that U.S. citizens eligible for the one-time Election Year Rebate Economic Stimulus Rebate will receive this money up to almost two months earlier if they have direct deposit than if it is sent by check. For many who can't afford a checking account or don't choose to have one, the delay is just another hidden cost of attempting to live out of the banking loop.

Perhaps these people are unimportant, or the IRS views this payment as good bait to coerce these people into getting with the documented money flow program. Paying them last seems wrong-headed, as these people are almost guaranteed to put the money into circulation quickly. I wonder if the IRS could have adopted a pre-paid debit card program similar to that announced by the Social Security Administration in January of this year. Such cards would have allowed the IRS to directly distribute funds to those without bank accounts, and given those recipients an easier way to spend their money.

There are other aspects of the rebate that might surprise recipients, such as:

• Those who split their 2006 direct deposit tax refund this year among several accounts will receive a paper check rather than direct deposit.
• Supplemental Security Income (SSI) doesn't count toward eligibility, although Social Security income and veteran's disability does.
• You must file a tax return this year, even if you don't owe any taxes, in order to get your rebate.

I admit to being highly skeptical of the Economic Stimulus Rebate program that will send us cash in the middle of a Presidential election season. That doesn't mean, however, that I won't do my part to stimulate the economy with it. Now the IRS has announced just when my ship is due to come in.

For those of us getting our checks in the mail -

Last two digits of your Social Security # /Check mailing date

• 00-09 May 16
• 10-18 May 23
• 19-25 May 30
• 26-38 June 6
• 39-51 June 13
• 52-63 June 20
• 64-75 June 27
• 76-87 July 4
• 88-99 July 11

Want your money quicker? Sign up for direct deposit.

Social Security # Direct deposit date

• 00-20 May 2
• 21-75 May 9
• 76-99 May 16

Determine your eligibility and the size of your rebate with this IRS calculator.