The Economic Stimulus Bill of 2009 has a few new tax breaks you may not be aware of:

• More Money Each Paycheck. Due to the passage of the 2009 Stimulus, many taxpayers will notice a slight increase in their regular paychecks starting on or before April 1. The ‘Making Work Pay’ tax credit means a vast majority of American working families are eligible for a refundable tax credit of up to $400 for working individuals and up to $800 for working couples. This credit will be paid through a reduction of income tax withholdings.
• Longer Unemployment Benefits. The 2009 Stimulus also provides needed relief to the unemployed, extending to December 31, 2009 the date by which an individual must exhaust his/her regular unemployment benefits in order to qualify for extended unemployment benefits. Extended benefits continue for 20 weeks plus an additional 13 weeks in high unemployment areas. Interested individuals should check with a local unemployment office to see how this provision applies in his/her local area.
• New Car Credit. If you’re in the market for a new vehicle, right now is the right time to buy. Under the 2009 Stimulus, sales tax on new vehicle purchases between February 17, 2009 and January 1, 2010 is deductible on your 2009 tax return. Within the provisions, the term “new car” covers cars, light trucks, recreational vehicles, and motorcycles.
• Refundable First-Time Home Buyer Credit. With the Refundable First-Time Home Buyer Credit, many taxpayers who purchase(d) a first home between April 9, 2008 and June 30, 2009 may be able to claim a refundable credit equal to 10% of the purchase price. Limitations apply, so be sure to read up on the specifics.

Make sure you check with your tax advisor, and check out the current deals available on Turbo Tax and Tax Cut.

Related posts:

1. New Small Business Tax Breaks From The Stimulus Package
2. How The 2009 Making Work Pay Tax Credit Works
3. Tax Advice on Unemployment Income, Self Employed, Home Office Tax Deduction, More
4. 7 Tax Cuts You May Have Missed
5. Don’t Miss Out on These Tax Credits When Buying a Home or Making Green Home Improvements

Tagged as: 2008 taxes, Federal Tax Return, H&R Block, TurboTax

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