What’s in the Stimulus Bill signed by President Barack Obama
What’s in it for you: Stimulus Bill
American Recovery and Reinvestment Act of 2009
Tax relief for individuals
Total: $237 billion
- $116 billion: New payroll tax credit of $400 per worker and $800 per couple in 2009 and 2010. Phaseout begins at $75,000 for individuals and $150,000 for joint filers. [30]
- $70 billion: Alternative minimum tax: a one year increase in AMT floor to $70,950 for joint filers for 2009.[30]
- $15 billion: Expansion of child tax credit: A $1,000 credit to more families (even those that do not make enough money to pay income taxes).
- $14 billion: Expanded college credit to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
- $6.6 billion: Homebuyer credit: $8,000 credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than three years.
- $4.7 billion: Excluding from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
- $4.7 billion: Expanded EITC (earned income tax credit) to increase the earned income tax credit — which provides money to low income workers — for families with at least three children.
- $4.3 billion: Home energy credit to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
- $1.7 billion: for deduction of sales tax from car purchases, not interest payments phased out for incomes above $250,000.
This will help answer any questions that clients might have related to the New Stimulus!