Tax Breaks in Stimulus Package - Do You Qualify For Tax Breaks? Check Obama's Stimulus Package

President Barack Obama has announced $ 787 billion economic stimulus package. Here are some key points of this stimulus package that would help you understand the tax breaks. These would also help you check if you qualify for the tax breaks in this new package:

· The first time home buyers are eligible for $ 8,000 tax credit. Last year it was $ 7,500 credit that is not payable until you sell your home within 3 years. This credit is mainly available for the tax payers who buy a primary residence amidst Jan. 1 & Dec. 1, 2009. It is not available to the tax payers whose AGI exceeds $ 75,000, or for the married couples $ 150,000.

· The purchasers of the new cars & trucks would be allowed to deduct the sales or the excise taxes. It is an above-the-line deduction. One does not have to itemize to claim this.

· This one is an addition to the existing Hope college credit. The parents would be allowed to claim a tax credit up to $ 2,500 every year to cover the higher education expenses. In this case the income phase outs are higher than those for the existing higher education tax credits. The single filers with AGI up to $ 80,000 could also claim a full credit. The married couples could have AGI up to $ 160,000 and hence claim a full amount.

· To awaken some of you, even the unemployment benefits are taxable. Here the stimulus package excludes the initial $ 2,400 in the unemployment benefits from the taxes in 2009. The stimulus package also makes it easier for the unemployed Americans to continue with the employer's health insurance coverage.

· mFor the singles, you are not eligible to the unemployment benefits of the stimulus package in case you earn above $ 3000. At par, you shall not be taxable. Below that you enjoy a grant as per you income.

To know more about President Obama's Stimulus Package and to check if you qualify for Government Grants

Click Here --> Federal Grant Programs

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Credit:ezinearticles

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