Home and Car Buyers benefits contained in the $787 Billion Stimulus Package
The details are slowing coming out around what is contained in the $787 Billion stimulus package recently passed by Congress and waiting the Presidents signature today.
Contained in the package is a $400 dollar tax credit for single taxpayers and $800 for families. This will not be like the last stimulus as it won't come in a single check but will be reflected in each taxpayers paycheck. This means about $8 per week more in your check.
First time buyers will receive a $8,000 tax credit. Unlike the current $7,500 credit this new one will not need to be repaid unless you sell within 3 years of purchase.
This $8,000 credit is available to any first time homeowner who purchases a home between Jan 1, 2009 and Dec 31, 2009. Phase out for taxpayers whose AGI (Adjusted Gross Income) exceeds $75,000 or $150,000 for married taxpayers.
Also contained in this package is a deduction of the sales tax or excise tax for purchasers of new cars between the date the package is signed and Dec 31, 2009.
The deduction will be above the line and will be available even if the taxpayer does not itemize their deductions (Schedule A Filers).
The sales tax deduction is limited to purchases up to $49,500. As with everything else, the deduction will phase out for single taxpayers with an AGI (Adjusted Gross Income) of more than $125,000 and married taxpayers whose AGI exceeds $250,000.
The bill also contains a provision that extends the tax break for people that take public transportation to work. The bill allows employees to set aside up to $230 a month pre tax to cover the cost of a bus, train or van pool. This is an increase from $120.
Parents of college students will also get a break. Bill contains a more generous tax credit for higher education. Tax credit up to $2,500 a year will be allowed to cover the costs of higher education. Phase out amounts have also been increased to allow more taxpayers to benefit from the credit.
Unemployed workers will now be able to exclude the first $2,400 in unemployment benefits from taxes in 2009. Unemployed workers will also now get the chance to continue their former employers health insurance coverage for up to 18 months. This will be available through COBRA.
The stimulus bill will subsidize up to 65% of the COBRA costs for 9 months. This subsidize payment will only be available to workers that were let go between Sept 1, 2008 and the end of 2009.
As usual, more and more details are coming out about this round of stimulus payments so check here often.
Contained in the package is a $400 dollar tax credit for single taxpayers and $800 for families. This will not be like the last stimulus as it won't come in a single check but will be reflected in each taxpayers paycheck. This means about $8 per week more in your check.
First time buyers will receive a $8,000 tax credit. Unlike the current $7,500 credit this new one will not need to be repaid unless you sell within 3 years of purchase.
This $8,000 credit is available to any first time homeowner who purchases a home between Jan 1, 2009 and Dec 31, 2009. Phase out for taxpayers whose AGI (Adjusted Gross Income) exceeds $75,000 or $150,000 for married taxpayers.
Also contained in this package is a deduction of the sales tax or excise tax for purchasers of new cars between the date the package is signed and Dec 31, 2009.
The deduction will be above the line and will be available even if the taxpayer does not itemize their deductions (Schedule A Filers).
The sales tax deduction is limited to purchases up to $49,500. As with everything else, the deduction will phase out for single taxpayers with an AGI (Adjusted Gross Income) of more than $125,000 and married taxpayers whose AGI exceeds $250,000.
The bill also contains a provision that extends the tax break for people that take public transportation to work. The bill allows employees to set aside up to $230 a month pre tax to cover the cost of a bus, train or van pool. This is an increase from $120.
Parents of college students will also get a break. Bill contains a more generous tax credit for higher education. Tax credit up to $2,500 a year will be allowed to cover the costs of higher education. Phase out amounts have also been increased to allow more taxpayers to benefit from the credit.
Unemployed workers will now be able to exclude the first $2,400 in unemployment benefits from taxes in 2009. Unemployed workers will also now get the chance to continue their former employers health insurance coverage for up to 18 months. This will be available through COBRA.
The stimulus bill will subsidize up to 65% of the COBRA costs for 9 months. This subsidize payment will only be available to workers that were let go between Sept 1, 2008 and the end of 2009.
As usual, more and more details are coming out about this round of stimulus payments so check here often.
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