Jordan Spizike 2009 Stimulus Bill Tax Breaks Incom

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United States Cash for Clunkers Program Details
New Car Tax Rebate- Obama Economic Stimulus Plan
$15,000 or $7,500 Tax Credit for Home Buyers?
College Tax Credit
Known as the American Opportunity credit, this portion of the stimulus bill provides an annual tax credit for the first $2,000 spent each year on college tuition, books, and fees, as well as an additional 25% credit for the next $2,000 spent on these college expenses. The maximum annual credit amount is $2,Jordan Retro 13 Birthday's on a Budget Save With B,500 per student.
Year-end Tax Tips
Qualifying homebuyers who have not owned and occupied a principal residence for at least three years prior to purchasing a home may qualify for a first-time homebuyer credit under ARRA. IRS news release IR-2009-27 from March 18, 2009 describes a tax credit amount equal to 10% of the purchase price of the new home, up to a maximum amount of $8,000.
According to the Internal Revenue Service, in news release IR-2009-30 released March 30, 2009, purchasers of new motorcycles, cars, light trucks, or motor homes may qualify for a tax deduction of the sales tax they pay for these vehicles. This tax deduction is only available for the purchase of new vehicles; used vehicle purchases do not qualify for the deduction. The deduction is also limited to vehicle purchases with a maximum sales price of $49,500. However, there is no limit on the number of vehicles purchased,[link widoczny dla zalogowanych], and a separate sales tax deduction is available for each vehicle.
The United States Congress recently passed an economic stimulus bill, the American Recovery and Reinvestment Act (ARRA). This new law contains several tax credits and deductions for consumers who make major purchases before the end of 2009. Although income limitations do apply, significant tax savings are available if one is buying a new car, paying for college or qualifies as a first-time homebuyer.
Unlike the Hope credit, which applied only to the first two years of college,[link widoczny dla zalogowanych], the American Opportunity credit applies for up to four years of post-secondary education. As with the new car sales tax deduction, the American Opportunity credit is restricted to taxpayers below an income threshold. This credit phases out for singe filers with MAGI between $80,000 and $90,000 and for joint filers with MAGI between $160,[link widoczny dla zalogowanych],000 and $180,000.
Tax Tips for Investors
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To qualify, single filers must have a MAGI below $75,000. Joint filers must have MAGI below $150,000. As long as the homebuyer occupies the residence for at least 36 months, this credit never has to be repaid, and it is a refundable credit. Even if the taxpayer owes less than $8,000 in taxes, the government will send a check for the difference.
To qualify for the sales tax deduction, vehicles must be purchased after February 16, 2009 and before January 1, 2010. The deduction gradually phases out for single filers with modified adjusted gross income (MAGI) between $125,000 and $135,000 and for joint filers with MAGI between $250,000 and $260,000. This deduction is available to all qualifying taxpayers, regardless of whether or not they itemize deductions on their tax returns.
New Car Tax Deduction
First-time Homebuyer Tax Credit