What The American Recovery and Reinvestment Act of 2009 Means For Individuals

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What The American Recovery and Reinvestment Act of 2009 Means For Individuals

Post by T on Tue Apr 21, 2009 9:25 pm

Though not every detail has been worked out, below are a few things that The American Recovery and Reinvestment Act is providing for individuals and families:

1. The "Making Work Pay" tax credit provides about 95% of working families
with a tax cut (I know, the Conservatives would have you believe otherwise). Individuals earning up to $75,000 and married couples filing jointly and earning up to $150,000 will receive tax credits up to $400 for individual filers or $800 for joint filers in 2009 and 2010.

A word of caution: If you have multiple sources of individual income, verify that you are having enough tax withheld. You may be receiving more than one tax credit which will have to be repaid. Should this result in not having enough tax withheld, you may be subject to a penalty.

2. A one-time $250 payment will be made to individuals who receive Supplemental Security Income or Social Security benefits. Payments will be made in late May or early June.

3. If you are receiving unemployment, beginning the week of March 25th, an extra $25 was added to your weekly benefit. The first $2,400 of unemployment benefits will be exempt from Federal income tax. Depending on your state, there may be additional weeks of unemployment benefits provided too.

4. Some people who are eligible for continued health insurance coverage
under COBRA may receive a subsidy for 65% of the costs of their health care premiums.This is a huge benefit for those with health issues.

5. Small businesses are the economic backbone of our country. Small businesses can receive help with loans, tax incentives, and more through the Small Business Administration. In addition to making more funds available for small business loans,
the act also eliminates fees on SBA-backed loans for the remainder of 2009 or until the $375 million in funding runs out.

6. Taxpayers who buy a new car may be able to deduct the sales and excise taxes on their 2009 tax returns.

7. Qualifying taxpayers purchasing a home before Dec. 1, 2009, may be eligible for up to $8,000 for a first-time home buyer credit.

T

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