The stimulus bill recently signed into law provides many of the same incentives as the last stimulus bill, but also new benefits Americans can take advantage of to reduce their tax bill and increase their savings.
Taxpayers receive a $400 credit ($800 if married and filing jointly) through reduced payroll withholding.
First-time homebuyers receive an $8,000 refundable tax credit for primary residences purchased between Jan. 1, 2009 and Nov. 30, 2009. The act also eliminates the requirement that the credit be repaid as long as the house isn't sold within three years.
Eligible college students will receive a $2,500 Hope Credit for 2009 and 2010, covering 100% of the first $2,000 of tuition and related expenses per year, and 25% of the next $2,000.
Other benefits of the stimulus package include a new car deduction, energy credit and tax breaks for families. Read more on the 2009 stimulus package.
Visit www.FeedthePig.org for more money-saving tips.
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