The Stimulus Plan in Plain English

Are you finding it difficult to make heads or tails of all this Stimulus Plan talk? Here is a simple explanation of what it means to you.

More Money in Your Paycheck

There has been a reduction in the amount withheld from your paycheck for Federal income taxes.

Individuals: $400/year if Adjusted Gross Income (AGI) is less than $75,000
Couples: $800/year if Adjusted Gross Income is less than $150,000
On average this amounts to about $13 additional in your paycheck each week.

Retiree Benefits

Do you collect...

Social Security?
Supplemental Security Income?
Veterans Disability?
Retirement Benefits?

You may qualify to receive an extra $250 check this summer.
Go to -http://www.socialsecurity.gov/payment


AMT Tax (Alternative Minimum Tax)

What exactly is the AMT? Click here for a detailed explanation http://www.fairmark.com/amt/amt101.htm

$500 increase in AMT exemptions for individuals with income less than $46,700 and $1,000 increase in AMT exemptions for couples with income less than $70,950.

With this change 26 million Americans won’t have to pay an AMT Tax this year!

New Vehicle Purchases

Car
Light Truck
Motor Cycle
Motor Home

Spend up to $49,500 and you can deduct State and Local Sales Taxes which in most states is 6% of the purchase price.

Who qualifies?
- Individuals who earn less than $125,000
- Couples who earn less than $250,000

You will qualify for the deduction whether you itemize or not.

(Okay, I’ve posted this for information’s sake, but the best way to buy a car for personal or business use is to buy used and pay cash)

Home Buyers

$8,000 credit for first time home buyers who purchase a home between January 1, 2009 and November 30, 2009.

Stipulations:
- The home must be your primary residence
- You must stay in the home 3 years
- If you fail to meet these requirements you will have to repay the money.

Did you buy a home between April 8, 2008 and December 31, 2008?

You may be able to qualify for 2008 earlier version of this credit. The 2008 credit maxes out at $7,500, however, and you have to repay the credit over 15 years - even if you stay in the home three or more years.
Check out this link for more info: http://www.federalhousingtaxcredit.com/home.html

Energy Efficient Home Improvements

Are you buying new windows this year or home insulation? The credit for energy efficient home improvements has been raised from $500 to $1,500.

The improvements include everything from new windows or water heater to a new central air-conditioning system for your home.

College Tuition

The Hope Credit: Increased to $2,500 (was $1,800)
Income Restrictions:
- Single: $80,000
- Couples: $160,000

The 529 College Savings Plan: The money in these accounts can now be used to purchase PCs/Laptops or Internet Access for students.

Unemployed?

If you were laid off between September 1, 2008 and December 31, 2009 and remain on your previous employer’s health insurance (COBRA benefits) – you will receive a 65% discount
on the premium for up to 9 months.

You also don’t have to pay taxes on the first $2,400 of unemployment benefits

Information on the 2008 Stimulus Payment:
If you didn’t file for the Economic Stimulus Payment for 2008 it may not be too late!

http://www.irs.gov/newsroom/article/0,,id=177937,00.html

Contact Dorethia:

www.connercoaching.com

800.962.2491