| The government has been offering multiple | | | | after February 16, 2009 and before January 1, 2010. |
| opportunities to the American public to benefit from | | | | This deduction is available whether a taxpayer |
| the American Recovery and Reinvestment Act of | | | | itemizes or not. |
| 2009. The tax benefits range from buying a new | | | | The most extensive tax break, affecting |
| home or making home improvements to education | | | | approximately 120 million, Americans is the lowered |
| and income tax credits. | | | | income tax rates. This payroll tax stimulus rate |
| The first-time homebuyer tax credit has been widely | | | | change went into effect no later than April 1, 2009. |
| publicized. This tax credit allows a taxpayer who has | | | | Another tax credit is for the multitude of American |
| not owned a residence in the past three years to | | | | workers who are collecting unemployment. Up to the |
| claim up to $8,000.00 on a 2008 or 2009 income tax | | | | first $2,400.00 in unemployment benefits tax free in |
| return. There are deadlines and income restrictions | | | | 2009. Something for both businesses and workers to |
| attached to this tax credit but many taxpayers will | | | | remember is the stimulus package allows for the |
| qualify. Maybe not as widely publicized is the tax | | | | Health Insurance Continuation Subsidy. The |
| credit for energy efficient home improvements. The | | | | government will pay 65%, through a tax credit, of |
| Recovery Act increases the rate to 30% of the total | | | | the COBRA costs for terminated employees. The |
| cost of qualifying improvements and raises the | | | | premium reduction applies to periods of health |
| maximum credit limit to $1,500.00. Again time | | | | coverage beginning on or after February 17, 2009 |
| restrictions and types of improvements that qualify | | | | and lasts for up to nine months for those eligible for |
| may limit this credit for some taxpayers but if you | | | | COBRA during the period beginning September 1, |
| do qualify make sure to take advantage of these | | | | 2008 and ending December 31, 2009. An updated 941 |
| benefits. | | | | form was released to accommodate the premium |
| In the past few weeks we have all heard of the | | | | assistance payments. Employers should use this form |
| “cash for clunkers” program that recently | | | | to enter premium payments made for COBRA |
| ended. What the Recovery Act Law allows for is | | | | benefits. |
| qualifying taxpayers to deduct state, local taxes and | | | | These tax credits and more are available. The IRS |
| excise taxes paid on the purchase of new cars, light | | | | reminds American taxpayers to take advantage of |
| trucks, motor homes and motorcycles up to | | | | any and all tax credits for which they qualify. |
| $49,500.00. New vehicle purchases must be made | | | | |