We received a notice over the weekend that our economic stimulus check should arrive “by May 30.” This is very exciting for me, since I figured we wouldn’t see the thing until sometime in July. I’ve always been the primary filer (since I make most of the $$$), and the last two numbers of my SSN put us in July for receiving our economic stimulus tax rebate.

So, even though the IRS transposed two numbers on our address and the notice (and likely our check) went to the neighbors across the street, I’m feeling very optimistic. For myself. Because I don’t know how much these checks will really stimulate the economy.

At any rate, I think that one of two things happened:

1. Here in Utah, the man is always assumed to be the primary for everything. So, my new accountant assumed that my husband would be primary, despite evidence to the contrary. Or,
2. My new accountant is a genius, and realized we’d get the economic stimulus check earlier if he shook things up with our tax filing.

Hopefully, the change won’t result in an audit (I don’t think it will). But whatever the reason, we’re getting the money earlier.

If you’re like me, it’s time to make an adjustment in the monthly budget. The dairy that we use is announcing increased prices on milk, cheese and eggs. And the fuel surcharge for delivery has gone up. Again. Not that we mind that much. After all, we like supporting local businesses — especially those with sustainable practices. But it does mean that we’re making adjustments.

But we’ve noticed a change at the grocery store as well. Food costs more. And we all heard about that panic-induced trend to hoard rice a few weeks ago. (Disclosure: I did not hoard rice. There is nor reason to, since the US is not experiencing a rice shortage.)

So is wheat the next target? Probably not. In fact, the wheat harvest is likely expected to be very good this year. But that isn’t changing the rate of food prices inflation on items like bread and pasta. Why is this? Wheat prices are dropping, and the harvest should be abundant.

The answer is in other issues. Harvesting wheat requires energy. And all the steps in between — the steps that take wheat and turn it into flour for bread and pasta — take energy as well. And energy prices are going up. Then you have to transport the food to wherever it is going. So that adds to the cost.

So, it is time to accept that, right now, even with economic stimulus tax rebate checks on the way, it is time to think about what you are spending your money on. Because more of it is going to be spent on food.
image credit: US government

If you have waited until today to pay your taxes (or file for money back), you are probably wondering why you waited until the last minute. Again.  (Incidentally, I don’t wonder this; I get everything ready to go and then don’t mail it til the last day. It’s purely psychological. It sort of makes me feel better.)

But there are some things you can start doing now to ensure that next year’s Tax Day isn’t quite so onerous.

• Get organized. Look through your tax return. What sorts of things are you deducting or getting credits for? Throughout the year, keep receipts from charity donations, home office expenses and other information in one place. Just automatically file it there. That way you’ll know exactly where to go for this information next year.
• Pay more throughout the year. If you work for someone, and you still end up owing, talk to human resources. See about re-doing your W-2 form to take out more money for taxes each month. If you have a home business, get the forms necessary to send in quarterly payments. This will make the blow much smaller, as it is spread out.
• If you’re getting a lot back, also go to HR. While it is nice to get a fat tax return, if you can adjust your withholdings, you can be in better shape. Rather than putting that money uselessly by, you should put it in an investment (even if it’s nothing more than a high-yield savings account) to earn interest. But be warned! If you actually owe money, hording it may backfire, since the IRS can demand the interest on it.
• Consider your filing options. Look at what you did this year and see what you could have done differently. Would it have made a difference to go from sole proprietorship to LLC? Will you be able to claim the same number of dependents next year? These are all considerations.

Finally, two things to consider for this year:

1. If you need to file an extension, head to www.irs.gov.
2. If you want your “economic stimulus” tax rebate, you have to file a tax return — even if it’s not something you normally do.

image credit: sxc.hu

So the letters telling you that you need to be filing your 2007 tax return in order to get the economic stimulus tax rebate should be on the way. Want to know how much you’ll get? Check out this handy economic stimulus tax rebate calculator from the IRS.