Final Stimulus Bill

February 16, 2009 12:00:00 AM PST
With the economic stimulus bill on track to become law, anxious Americans are wondering, "What's in it for me?"The White House has said the economy hasn't bottomed out yet... but the president believes the bill he plans to sign tomorrow will put the country on the road to recovery.

The final version of the stimulus bill includes $100-billion dollars for individuals with the anticipation that it will get the economy kicking into high gear again. There are, however, earning caps that will play into the size of the tax credit you receive. Generally, individuals whose adjusted gross income is over $75,000 and couples earning more than $150,000 won't be eligible.

If you are a first-time home buyer, Uncle Sam will give you an $8,000 dollar tax credit to move into your dream house before the end of the year. Most individuals will get a $400-dollar credit, and couples will get $800-dollars.

For the roughly 24-million Americans affected by the alternative minimum tax, there will be no increase this year.

If you are looking for a brand new car, both you and your neighborhood car salesman may be able to soon shake hands on a deal. The stimulus plan will also let you deduct state and local taxes, saving you about 6 percent on the original sales price.

Other tax breaks: college students or their parents are eligible for tax credits of up to $2,500 dollars to help pay tuition and related expenses in 2009 and 2010.

Those receiving unemployment benefits this year wouldn't pay any federal income taxes on the first $2,400 dollars they receive.

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