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.