50 Million To Get $250 Check In May – Social Security Recipients Get $250 Check From 2009 Stimulus Package
Fifty million people, one-sixth of the population, will be receiving checks from the stimulus package in May. The payments go to those who do not qualify for “Making Work Pay,” a tax credit that offers $400 per person or $800 per couple. The lowdown and possible investment opportunities…
For everyone: The money does NOT have to be repaid. This is not like the 2008 homebuyer’s tax credit, more like the 2009 homebuyers tax credit in that you get to keep every dime!
First: Do You Qualify?
You’ve likely heard of this as part of the “$13 per week” that the average family will get in tax breaks. The 2009 and 2010 Making Work Pay provision was put in place with the help of the 2009 stimulus package. The provision allows for up to $400 be reimbursed at a rate of 6.2% of earned income.
Simply, for people who are employed will get up to $400 back as an individual and up to $800 as a couple. This phases out at $75,000 and $150,000 annual income per person and per couple, respectively. The short of it: take your earned income, multiply it by .062, find out what you get back! Employers were directed to change withholding information for their employees so the benefits would be go direct to each and every paycheck.
Retirees Don’t Get The Tax Credit
Those who draw on social security do not receive the tax credit. Instead they receive a flat $250 check to defray the costs, this was in part due to a refundable tax credit. The majority of these payments will be issued in May, to 50 million people in the United States.
So what’s this all worth?
About $13 Billion, but who’s counting any more? The checks are to hit in May, with no direct date given for when each payment is to be processed. However, the keen investor has some inside information: People are going to have a lot more money to spend in May.
Not all people though, the overwhelming majority of those receiving the payouts will be 62 years of age or older. This is a demographic that I’ll admit I hardly understand, however pinpointing where they might spend the stimulus checks is a game all in itself. Here’s a few ideas:
Sears Holdings SHLD
Sears is a retail brand name that’s been around for decades. Its well known, many localities have them and its popular with the crowd that remembers Roebuck following the name. This one is a possible buy, but, its fairing poorly as a result of recession. A consideration for sure.
Intel INTC
Hear me out. Today’s 62+ crowd isn’t as old as we think. They’re still involved in the tech world though they make up less of the computer market. I’m thinking netbooks with this one, Intel’s Atom chip is selling like hotcakes and they just released lowered expectations. A $250 check covers many lesser featured netbooks. I’m sensing a midsummer turnaround on higher earnings.
McDonalds MCD
McDonalds is a popular brand with the baby boomer generation. Its business is doing well despite recession and a great part of its market is soon to get a fiscal boost. I’m lovin it!
That’s enough from me. Tell me what you think and what you’re buying to get in on the summer boost. Some stocks are going to pop from this, its just finding the right one.
