Tax Cuts in Stimulus Bill Updated
February 13, 2009 by TFB
American Recovery and Reinvestment Act of 2009 was signed into law on Feb. 17, 2009. CCH once again published a great summary for the tax provisions in the law.
CCH Tax Briefing: American Recovery And Reinvestment Act Of 2009
The most significant items for individuals are:
* Making Work Pay: For 2009 and 2010, $400 per person tax credit for AGI under $75,000; phased out to $95,000 (double everything for married filing jointly).
* One-time $250 payment to Social Security and other fixed income recipients.
* AMT patch for 2009: increase AMT exemption amount from 2008 levels by $500 per person or $1,000 per couple.
* First-time homebuyer tax credit: If you never owned a home in the last three years and your AGI is under $75,000/$150,000 (phaseout to $95,000/$170,000), and you buy a primary residence between Jan. 1 and Nov. 30, 2009, you get an $8,000 refundable tax credit, which does NOT have to be repaid if you hold the home for three years. Sorry for folks who bought in 2008.
* Tax deduction for buying a new car: If your AGI is under $125k/$250k (phaseout to $135k/$260k), and you buy a new car (not used car) under $49,500 after the law is signed until the end of 2009, you get a tax deduction for the sales tax. No deduction for car loan interest. Non-itemizers are also eligible for this deduction.
* Expanded HOPE credit for education and renamed to American Opportunity Tax Credit.
For more details, please read the CCH briefing or the full text of American Recovery and Reinvestment Act of 2009.
Keywords: stimulus
Software picked, likely related posts:
* Tax Cuts in Fiscal Stimulus Package
* Tax Proposals in Obama’s 2010 Budget Outline
* Tax Breaks In Stimulus Bill for Buying a Home Or a New Car
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