With 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 advantageÂ 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.Â
- 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.Â Â If you have any questions about the new stimulus bill and how it could affect your returns, call the Tax Pro @Â 619-283-8055.