Welcome to the Western New York Stimulus Guide! We've cut through the clutter of the government's stimulus package and compiled useful information to help you find tax breaks, credits, and cash which can make all the difference during these tough economic times.
You’ll also find information from our sponsors, directly related to the new stimulus package.
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The stimulus bill will allow new car buyers to deduct the purchase's sales tax from taxable income. The deduction is limited to purchases of $49,500 but includes all types of vehicles and most motorcycles.
For more info on businesses that can help with new vehicle purchases, click here.
Buying a House
This year's tax credit, for homes purchased by first-time home buyers from January 1 through November 30 of this year, is for up to 10 percent of the price of the house or $8,000, (whichever is less). Plus, you don’t have to pay it back if you stay in the house for three years (which, in last year's tax credit, you had to pay back over 15 years). This credit is also refundable, meaning if you don’t pay that much in taxes annually you still get the rest of the total amount in the form of an IRS refund.
Going Green
If you buy an energy-efficient furnace, air conditioner, water heater, high efficiency doors and windows, insulated garage doors, or insulation, you can get a tax credit worth 30 percent of the cost up to $1,500 from the previous $500. Renewable-energy projects, including solar photovoltaic and hot-water systems, small wind systems and geothermal heat pumps are now eligible for a tax credit worth 30 percent of the total cost, with no cap on the amount. In addition, lower caps, such as a $200 limit on new windows, are gone.
Families that purchase a plug-in hybrids will get a tax credit of up to $7,500 and there are tax credits for conversion kits, however plug-in hybrids and battery-power electrics aren't likely to be in showrooms until next year at the earliest.
The tax credits on all home and auto energy-efficiency upgrades will be good through 2010. Just make sure the equipment you buy is at the efficiency level required to get the tax credit.
For more info on businesses that can help with going green, click here.
College Savings
The Pell Grant program received $15.6 billion in new funding, which will vastly increase the number of grant recipients. The maximum Pell Grant will be $5,350 for 2009-10 and the recipient base for Academic Competitiveness Grants and the National SMART Grant program will also increase, since students who receive those must be eligible for Pell Grants.
Also included in the stimulus package is a major modification to the American Opportunity tax credit (formerly the Hope scholarship tax credit). The credit now goes to $2,500 of qualified tuition and related expenses (up from $1,800) for four years (instead of two) of postsecondary education. Expenses under the credit now include course material like textbooks as well. The credit is 40 percent refundable, which means that up to $1,000 of the credit may be refunded to eligible taxpayers. Income phaseouts of the credit are higher now, too: $80,000 to $90,000 for single taxpayers and $160,000 to $180,000 for married filing jointly.
Plus, there is a $200 million increase to the Federal work-study program that will add 81,000 recipients. About 94 percent of students who qualify for this program are in families with incomes of less than $100,000, he said.
Taxes
Working Americans will start to receive $400 ($800 for married couples) tax credit, which means workers will receive approximately $13 more a week from June through the rest of 2009, and $8 more a week in 2010 for the rest of the credit. The credit has a cap of $75,000 to $90,000 adjusted gross income for single taxpayers and $150,000 to $190,000 for married couples.
The tax credit would phase out for single taxpayers with adjusted gross incomes of $75,000 to $90,000 and married couples with AGI of $150,000 to $190,000.
Lower-income families should see an expanded earned income tax credit and child tax credit.
Retirees and The Disabled
Those who receive Social Security because of retirement or a disability will probably receive a check for $250 this year. The Internal Revenue Service is working with congressional staff on the new law and said the latest information will be released on its Web site, www.irs.gov.
The Jobless
Many of those who are unemployed will get a boost from the stimulus bill, including a $25 increase in weekly benefit checks through 2009 that should help not only those who are out of work but the broad economy as that money gets spent.
The bill includes other measures to help those who have lost their jobs:
> Lengthen the period in which people can be eligible for extended unemployment benefits. The program, which provides up to 33 weeks of extra jobless benefits after workers exhaust the regular 26 weeks received in most states, was passed last year and was set to expire at the end of March. Under the stimulus bill, the extended benefits would be available through the end of 2009.
> Provide money to states that agree to make benefits available to more workers. That would help some low-wage and part-time workers who wouldn't otherwise receive unemployment benefits.
> Suspend the taxation of unemployment benefits up to $2,400.
> Increase the maximum monthly food-stamp benefit by 13%, which lawmakers estimate will help 31 million Americans, half of them children. And the bill provides a subsidy to cover 65% of a worker's COBRA health insurance premiums for up to nine months. COBRA lets workers continue their former employer's coverage for at least 18 months.
To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 1 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy tips.; Golf; WGR; Jeremy White; Tri-County Country Club; Steve Warzala; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 2 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy tips.; tournament; WGR; Jeremy White; Golf; Tri-County Country Club; Steve Warzala; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 3 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy tips.; Golf; WGR; Jeremy White; Tri-County Country Club; Steve Warzala; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 4 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy.; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 5 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy.; Golf; WGR; Jeremy White; Tri-County Country Club; Steve Warzala; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 6 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy.; Golf; WGR; Jeremy White; Tri-County Country Club; Steve Warzala; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 7 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy.; Golf; WGR; Jeremy White; Tri-County Country Club; Steve Warzala; To prepare you for the WGR Celebrity Golf Tournament 2008, this video focuses on Hole 8 at Tri-County Country Club's course. Video hosts Jeremy White and Steve Warzala will share each hole's layout and strategy.; Golf; WGR; Jeremy White; Tri-County Country Club; Steve Warzala;
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