Here are some of the ways the 2009 Stimulus Plan can put money in your pocket this year and beyond.
The IRS has changed the rate of withholding, so you will have a slightly larger paycheck, (about $45 dollars per month for single workers and $65 for married couples). Self-employed workers have reduced quarterly estimated tax payments when filing 1040-ES forms. To qualify, your modified adjusted gross income must be less than $95,000 if you are single and less than $190,000 if you are married filing a joint return. Note: Married couples with both spouses working will have to pay some of the money back when they file their 2009 tax return, so you might want to think about adjusting your W-4 form with your employer if you don’t want to end up owing money next year.
When you buy a new vehicle you can claim the state and local sales tax and excise taxes as a deduction on your 2009 tax return. To qualify, buy a new vehicle between February 17, 2009 and December 31, 2009. Cars, light trucks, motor homes and motorcycles are eligible for this deduction.
You can get a tax credit for buying a first home (or any home if you haven’t owned one three years or more). The credit is 10% of the purchase price,up to $8,000, for homes purchased between January 1 and November 30, 2009. It never needs to be paid back. File using form 5405. To qualify, your modified adjusted gross income must be less than $95,000 if you are single, or less than 170,000 for married filing jointly.
The federal government will pay 65% of COBRA coverage for up to nine months. If you were laid off between September 1, 2008 and December 31, 2009 you may qualify, if your income is below $140,000 for a single return or $290,000 for married couples filing jointly. If you receive the benefit and then your income exceeds these amounts, you will have to pay it back. If you receive the benefit and your income ends up exceeding $125,000 for singles or $250,000 for married folks, you will have to repay part of the benefit.
Those who are collecting a pension will receive a one-time payment of $250, to be paid by June 17. Those who qualify include Social Security recipients, those who receive Railroad Retirement benefits, Supplemental Security Income recipients and veterans receiving pensions. Retired government employees who do not receive social security also qualify.
Unemployed workers will have $25 per week added to their unemployment
checks. In addition,
unemployment payments up to $2,400 will be tax free. There is also
an extended period of eligibility for unemployment for 2009.
