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Americans Divided on Their Plans for Economic Stimulus Tax Rebate, According to AICPA Survey

PR Newswire, April 29, 2008

NEW YORK, April 29 /PRNewswire/ -- Americans are divided about how they plan to use their economic stimulus tax rebates, with almost equal numbers saying they will save it, spend it or pay down debt with it, according to a survey by the American Institute of Certified Public Accountants.

"How you use your rebate, if you qualify for one, depends on your own personal circumstances," said Carl George, chair of the AICPA's National CPA Financial Literacy Commission. "It's important that you evaluate your situation appropriately. Discretionary spending should always be subordinate to obligations like paying down debt."

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Eligible taxpayers will receive rebates ranging from $300 for individuals to $1,200 for families over coming weeks. Twenty-eight percent of respondents in the poll conducted for the AICPA by Harris Interactive said they plan to save their rebates, followed by 27 percent who said they would spend it and 25 percent who would pay down debt.

AICPA member Doug Stives, CPA/PFS, a professor of accounting at Monmouth University in West Long Branch, N.J., offered this tip on how to put your rebate check into savings and earn additional tax benefits:

"If you are not currently contributing the maximum allowed into your retirement plan, such as a 401(K), take the rebate amount, divide it by the number of pay periods left in 2008 and have that amount withheld from each remaining paycheck and put into your retirement plan," Stives said. "The tax saved by reducing your taxable income will provide a second windfall."

The AICPA survey showed that those most likely to save their rebate are single, while retirees and married individuals seem to be the ones who will spend it. Those most likely to use the rebate to pay down debt are working women with children.

Congress passed the Economic Stimulus Package in January as a means of countering slow economic growth in the wake of the subprime mortgage meltdown.

To help Americans of all ages improve their financial literacy skills, the CPA profession launched 360 Degrees of Financial Literacy (http://www.360financialliteracy.org/). A related campaign, Feed the Pig (http://www.feedthepig.org/), created with the Ad Council, is designed to help 25 - 34 year-olds prepare for long-term financial security.

Methodology

The AICPA survey was part of a Harris Interactive National Quorum telephone omnibus survey. The interviews took place from March 5 - 9. The National Quorum is a bi-monthly survey among 1,000 U.S. adults ages 18 and older.

About the AICPA

The American Institute of Certified Public Accountants (http://www.aicpa.org/) is the national, professional association of CPAs, with more than 350,000 members, including CPAs in business and industry, public practice, government, and education; student affiliates; and international associates. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies; federal, state and local governments; and non-profit organizations. It develops and grades the Uniform CPA Examination. The AICPA maintains offices in New York; Washington, D.C.; Durham, N.C.; Ewing, NJ; and Lewisville, TX.

Media representatives are invited to visit the AICPA Online Media Center at http://www.aicpa.org/mediacenter.

CONTACT: Joel Allegretti, American Institute of Certified Public Accountants, +1-212-596-6111, jallegretti@aicpa.org

Web site: http://www.360financialliteracy.org/ http://www.feedthepig.org/ http://www.aicpa.org/mediacenter

Americans Divided on Their Plans for Economic Stimulus Tax Rebate, According to AICPA Survey

PR Newswire, April 29, 2008

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