A couple of of pieces of the package are actually meant to specifically help the taxpayers:
1: One provision for those under Social Security and Supplemental Social Security income beneficiaries and older veterans and railroad retirees is a one time payment of $250.00 dollars for individuals and $500.00 dollars for couples where both are drawing these benefits.
You needn't file any forms or do anything special to get your money. It will just show up by June as an extra check or automatic deposit. Depending on how you usually receive your benefits. Want more details? Go to www.ssa.gov/payment. If you are a retiree and participate in some plan other than Social Security you may have to file tax returns to get your payments.
2: Should you choose to purchase a new car in 2009 you can get a deduction for any state and local sales taxes you pay. The nice part about this one is that even if you cannot itemize deduction's you still can take the taxes as a credit off your return. The only limitation is that it is only on the first $49,500.00 dollars of the cost of the car.
3: For those still working you will get an additional $400.00 dollars in 2009. You should see this in the form of an increase of $7.70 or so a week. Others will get the money when they file their 2009 tax return. Phaseout begins at $75000.00 dollars for individuals and $150000.00 dollars for couples.
4: COBRA: This is the law that allows you to continue your employer medical insurance if you lose your job through through no fault of your own. The stimulus package provides that if between Sept 1, 2008 and January 1, 2010 you lose your job you can get some payment relief.
In its current form it can be costly because you not only pay your part of the premium you also pay the companies part plus an administrative fee. Regular COBRA can continue for up to 18 months. The new stimulus package has a subsidy provision that will allow you to pay only 35 percent of the total amount per month for up to 9 months. The employer gets a tax credit for the 65 percent remainder. Remember though, companies under 20 employees are not eligible for this program and are not required to provide this benefit so for those employees this subsidy will not be available
5: Saved the best for last, so to speak, Should you buy a new home in 2009, either for the first time or if you haven't bought a home in the past three years you can get a tax credit of up to $8000.00 dollars to help with your down payment. There is also a provision for a new tax combined credit for up to $1500.00 dollars for 2009 and 2010 for improving the homes energy efficiency. Now, if you buy such items as replacement windows and energy efficient appliances you can get up to a 30 percent credit.
