Can You Benefit From Recovery Act Tax Credits? - Homebuyers Credit. Homebuyers who purchase by April 30, 2010, and settle by September 30, 2010, may be eligible for a credit of up to $8,000. Documentation requirements apply.
Many of
the Recovery Act provisions are geared toward individuals:
Homebuyers
Credit. Homebuyers who purchase by April 30, 2010, and settle by
September 30, 2010, may be eligible for a credit of up to $8,000.
Documentation requirements apply.
COBRA.
Workers who lose their jobs between September 1, 2008, and May 31,
2010, may qualify for reduced COBRA health insurance premiums for up
to 15 months.
Education
benefits. The American Opportunity credit and enhanced benefits for
529 College Savings plans help families & students find ways to
pay higher education expenses.
Home
energy efficiency & renewable energy incentives.
Earned
Income Tax Credit. The EITC is bigger in 2009 & 2010.
Additional
Child tax credit. More families will qualify for the ACTC in 2009
and 2010.
Making
Work Pay credit. This credit means more take-home pay for many
Americans in 2009 & 2010.
$250
for Social Security Recipients, Veterans and Railroad Retirees. The
Economic Recovery Payment was paid by the Social Security
Administration, Department of Veterans Affairs and The Railroad
Retirement Board in 2009.
Money
Back for New Vehicles. Taxpayers who bought new cars and certain
other new vehicles in 2009 can deduct the state & local sales
taxes they paid as well as other taxes and fees paid in states with
no sales tax.
Increased
Transportation Subsidy. Employer – provided benefits for transit
and parking rose in 2009.
Up
to $2,400 in Unemployement Benefits Tax free in 2009
Health
Coverage Tax Credit. This credit increased from 65% to 80% of
qualified health insurance premiums and more are eligible.
Information
for Businesses
The
following Recovery Act provisions affect businesses:
Making
Work Pay Tax Credit. The 2010 withholding rates reflect reduced
withholding. An optional withholding procedure is available for
pension plan administrators.
Work
Opportunity Credit. This expanded credit adds returning veterans
and “disconnected youth” to the list of new hires that
businesses may claim
COBRA:
Health Insurance Continuation Subsidy. The IRS has extensive
guidance for employers.
Energy
Efficiency and Renewable Energy Incentives.
Net
Operating Loss Carryback. Small businesses can offset losses by
getting refunds on taxes paid up to five years ago. The Worker,
Homeownership and Business Assistance Act of 2009 (WHBAA) expanded
the five-year NOL carryback to most businesses.
Municipal
Bond Programs. New ways to finance school construction, energy and
other public projects.
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