April 13, 2010
Chances are good you’ll pay less in taxes this year
One of candidate Obama’s main campaign promises was to reduce the tax burden on the middle class. President Obama made that promise a reality when he signed the 2009 American Recovery and Reinvestment Act (aka the stimulus). Over 1/3 of all money in the Recovery Act was tax cuts. Ninety-five percent of all Americans received a tax cut because of the Recovery Act. The Recovery Act created new tax credits and expanded eligibility for several others, including:
- The Earned Income Tax Credit (federal and state) worth up to $5,657.
- The Child Tax Credit worth up to $1,000 per child.
- The Making Work Pay Tax Credit worth up to $400 or $800 for join-filers.
- Economic Recovery payments up to $250.
- The First-Time Homebuyer Credit worth $8,000.
- Residential Energy Credits up to $1500.
- The New Sales Tax Deduction for Vehicle Purchases.
- Tax-Free unemployment benefits up to $2,400.
- COBRA subsidies of up to 65% of the cost of medical insurance premiums.
The President covered many of the new provisions in tax law in his recent weekly address:
It’s not too late to get the tax credits owed to you
If you’re like many Americans who filed their tax return already, you can amend your return – even after April 15 – to get the tax credits owed to you. These credits aren’t a hand out – they’re the law. It’s your money. Take the credit.