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Recovery Act of 2009
Wednesday, February 18th, 2009With just over 300 changes to the Internal Revenue Code as part of the Recovery Act of 2009 (Stimulus Bill), below are a few of the bigger items that you might want to take advantage of:
- Onetime payments of $250 to indiviuduals on fixed income (primarily Social Security, Railraod retirees and disabled verterans). Some retired government workers will also receive the one time payments of $250.00.
- First time home buyers will now get a $8,000 tax credit. Escrow must close in 2009. If you live in the home at least 36 months, you DON’T have to repay the credit.
- A special “above the line” deduction is now available for state and local sales taxes or excise taxes paid on the purchase of a new vehicle. There is a phase out if your income exceeds $125,000 ($250,000 for joint returns).
- Education credit: The HOPE credit now goes to $2,500 per year and will include “course materials” in “qualifying expenses”.
Check back to our blog soon to see more updates. If you have any questions about the new stimulus bill and how it could affect your returns, call the Tax Pro @ 619-283-8055.