More Economic Stimulus - The Devil is in the Details

Or in several cases I should say the Angel. These are some sweet credits we are all paying to get. I'll take last weeks list and expand on what we know so far.

1. Nothing that I have been able to locate yet that will directly impact HS money, like tax breaks for that type of income.
Still nothing new here.

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.
Additional 20 weeks of benefits (plus another 13 for high areas) for people who run out of time before 31 Dec 2009

3. Tax withholding tables will change to put more money in each paycheck.
Tax withholding table will change 1 March so you should see more in your first paycheck afterwards.

4. There will be a new education credit that will be partly refundable.
This is the best of the lot. It allows the Hope credit (the best education credit) to be expanded to $2500, with 40% refundable. It also expands the credit to include the first four years of college instead of just two. And the can now take the cost of books for the credit.

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.
For homes purchased in 2009 the homeowners must live in the home for at least 3 years or the credit has to be repaid.

6. The additional child tax credit will kick in at $3000 instead of $8-12K like it has in the past.
No additional info on this

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.
The maximum amount of EIC is now $5657 with 3 or more kids. The phase out ranges have been increased as well. $13440/18440 single/MFJ no dependents, $35463/$40463 1 child single/MFJ, $40,295/45295 2 children single/MFJ, and $43281/$45295 3 children single/MFJ.

8. Credit for hybrid vehicles will be created and/or raised.
Nothing new here, but they have also added a sales tax deduction for people who buy any new American made vehicle.

9. Credits for solar energy use and other green home tech will be increased/created.
They have basically re-instated the credits from 2007 for residential home energy improvements and raised the credit amount to $1500.

10. People on SS, SSI, SDI, VA, or other types of disability will receive a direct payment of $250.
Payments should go out on this within 120 day of 6/1/09.

More to come as details are available! Kathy

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Tags: economic, income, stimulus, tax, taxes

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Comment by sesport on February 25, 2009 at 16:46
Thanks, Kathy, appreciate all your hard work getting this for us. I personally like #'s 3,48 & 9. I'm sure those with growing families will REALLY, REALLY like the items for children and higher education. What's not to like about making it easier to get a higher ed.?
Have a good evening - sesport :0)


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