Obama Stimulus Package Comes With Tax Credits & Free Cash
If you have been left wondering how the Obama Stimulus Package will effect you and your family, you may be surprised to know that it may leave you with a little more money in the bank. Due to two programs, one issued through the IRS, one through Social Security, the American people can expect a greater income in 2009 as tax breaks are given out to the general public.
The first program is the Making Work Pay Tax Credit, which will decrease the amount of taxes withheld from each paycheck over the next several months. This will be claimed on the ‘09 tax returns, so that it will not reflect on the end of year refund. Instead, you can expect between $400 (for a single worker), or $800 (for married couples) more, broken up into about a $30 – $60 increase on each paycheck until the amount is covered.
While it may not seem like much, it is a significant enough raise in income that should allow a number of small boosts to the economy each month, and will help households to have a little bit left over after bills are paid.
The second program is for anyone who is earning Social Security, or getting any kind of railroad or government retirement payments every month. Instead of a small amount more on every check, there will be a one time payout of $250, to be issued in a separate check, as part of the Economic Recovery Payment.
There will also be a majority of people laid off this year who will be eligible for a tax credit when they file in 2009. This can be determined by visiting the IRS website, or by calling your local IRS office.
Worried about this causing tax filing to become more complicated? Anyone earning less then $42,000 a year will also qualify for free tax help, through a number of tax assistance programs within your state.
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5 Responses to “Obama Stimulus Package Comes With Tax Credits & Free Cash”
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It is nice that President Obama and his staff as agreed to give Social Security, SSI, and Veterans the one-time amount of $250.00. My questions is how is this one time payment going to help us the rest of the year? It was bad when last year we only received $300.00. Don’t get me wrong, it was appreciated. We still are having hard times like everybody else. It is true we don’t have jobs to go to everyday, but we still have to wonder where the money is coming from for medications, and food. My husband and I still are having hard times. We cannot get food stamps and medicaid. The reason is that the income we are receiving is too high. When applying for these benefits it should be based on what you received each month not what you make. You still have your rent or mortgage to pay plus your utilities. When we ask for help we have to hear, “With both of you on disability you should be getting help”. Our response is that “They say we make too much money”. We do not received that much money with the expenses we have to pay. Where is the help?
I am just wondering I’m on disability. Will this apply to me or only if I receive SSI? Thank you
My workplace is doing the Making Work Pay thing, and last week I got something from SS saying that I would be getting a $250.00 stimulus check. That’s kinda like double dipping. Should I tell my workplace to stop giving me the extra money or just divy up when I file my 2009 return?
is it true bacause of the stimulus check we are not going to get a raise in our s.s. for the next three years ? walt
I’m glad that they are giving money to the average citizen, but how much is it going to help? And is this billion dollar stimulus package really worth it? Just a couple of good questions to ask before rushing into things.