Mar 9, 2009

What the Stimulus Means for You :o)

So, what are we going to get for $800 Billion, and is there a chance that us average citizens will see anything? Below are the details that we can expect:

A bigger paycheck: Starting in April, you can expect to see a little bit more in your paycheck, and income tax reduction of $400 for individuals and $800 for couples. Assuming this is for the whole year, it should be $50 to $60 per month.

A bonus for retirees: If you collect social security, look for a $250 check this summer.

Relief from the AMT: A $500 increase in the alternative minimum tax (AMT) exemption for individuals, to $46,700, and a $1000 increase for couples, up to $70,950.

A tax break on new wheels: If you buy a new car, light truck, motorcycle or motor home this year and spend up to $49,500, you can deduct state and local sales taxes (average is 6%). Individuals who make less than $125,000 and families making less than $250,000 qualify.

An incentive for home buyers: A tax credit of up to $8,000 for first-time buyers has been extended through November. If you buy in 2009, you will not have to pay the credit back. For all homeowners, the cap on credits for energy-efficiency improvements, such as new windows or insulation, has been raised from $500 to $1,500.

A break on college tuition: A beefed-up Hope (now American Opportunity) credit will max out at $2,500, up from $1,800. Qualifying income limits rise to $80,000 for singles and $160,000 for couples. Does your college student need a PC? You can use money in your 529 account to buy one - or Internet access - this year or next.

Lifeboats for the laid-off: Those who remain on their former employer's health-insurance plan will get a 65% subsidy for up to nine months. The first $2,400 in unemployment -insurance benefits this year will be tax-exempt.


  1. Hello my mafia war bud, nice of you to post this. I keep hearing bits and pieces from NPR but have yet to sit long enough to get what the whole deal is. I volunteered for switchboard today and really don't have a lot to do up here.

  2. It seems that this should provide some not-insignificant relief for some folks.


  3. I'll look forward to my $250. Anything helps these days.

    Hugs, Rose

  4. Uhm, is this a PG-13 blog? This stimulus package is such a cluster f***.

  5. I feel that the stimulus is useless. I am 62 and the house is paid off. I need relief with the loss of my 403b, but that is not part of the plan. I was reading in the latest Forbes how the CEO that are receiving a bail out are all whining and crying about how they can ONLY get $500,000. Give me a break those fools are part of the problem and they still think they deserve more.

  6. WHEN will all this start... they told us at work that we will see more in our paychecks, but WHEN!?! LOL!! And sales tax is supposed to go up, here, too... but nobody seems to know WHEN?!

    Thanks for this info, though, Ken!! It really is helpful!

  7. According to the SS site our $250 should be mailed in late May. Every little bit helps and frankly, I earned it all after 42 years of working...yeah baby!!!
    Hugs, Joyce

  8. To me it all sounds like just throwing a huge amount of money to the 4 winds and hoping it will help something, somewhere along the way.


Tell Me What You Think, Don't Make me go Rogue on you :o)