Everyone I know breathed a huge sigh of relief when the news finally came across that President Obama signed the Stimulus 2009 into effect on February 17th. I also felt a little easier that some plan or course of action has been put into action. My next question, well what is this bill going to do for me? As I researched on the net, I realized there is an extensive amount of information, although not all understandable. Here is a Stimulus chart I made to for easy viewing.
I mainly want to focus on the tax benefits will be for the individual since there is the misconception by several that we will all receive stimulus checks. Not true! Only those who did not receive a check last year and those who are receiving social security and veteran’s benefits will receive a check this year. Checks will be mailed starting in May.
Here is a brief listing of the tax cuts coming our way.
$116 billion: New payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phaseout begins at $75,000 for individuals and $150,000 for joint filers.
$70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009.
$15 billion: Expansion of child tax credit: A $1,000 credit to more families (even those that do not make enough money to pay income taxes).
$14 billion: Expanded college credit to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
$6.6 billion: Homebuyer credit: $8,000 credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years. This only applies to first-time homebuyers.
$4.7 billion: Excluding from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
$4.7 billion: Expanded earned income tax credit to increase the earned income tax credit — which provides money to low income workers — for families with at least three children.
$4.3 billion: Home energy credit to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
$1.7 billion: for deduction of sales tax from car purchases, not interest payments phased out for incomes above $250,000
If you are like me, you saw the first peek of the stimulus in your paycheck this month. It was nice to have extra no matter how small! A good reference to look at if you want to know more information about each section listed on the chart is bespacific.com. Sabrina Pacifici has a blog with and I quote “accurate,focused law and technology news”. All the information is easy to read and doesn’t have alot of technical jargon.