Here is an overview of what the new Economic Stimulus package is going to mean to your taxes. Please remember that there are a lot of specifics that haven't been announced yet, so these are mostly generalizations.
1. Nothing that I have been able to locate yet that will directly impact HS money, like tax breaks for that type of income.
2. People on unemployment will receive an extra $25 a week, a longer time to draw benefits, and the first $2400 will be tax exempt on their federal return.
3. Tax withholding tables will change to put more money in each paycheck.
4. There will be a new education credit that will be partly refundable.
5. The first-time home buyers credit will go to $8000 and not have to be repaid. Unfortunately it was not grandfathered and only applys to homes purchased in 2009.
6. The additional child tax credit will kick in at $3000 instead of $8-12K like it has in the past.
7. Earned income credit will be available for up to 3 kids instead of 2 and the phase out ranges will be raised. And the credit for low income people without kids will be adjusted up.
8. Credit for hybrid vehicles will be created and/or raised.
9. Credits for solar energy use and other green home tech will be increased/created.
10. People on SS, SSI, SDI, VA, or other types of disability will receive a direct payment of $250.

There is a lot more in the bill, but these are the major tax things. I'll keep looking for some HS related items and post them. I'll also keep you advised as specifics come out.


Kathy