Still Time for Stimulus Benefits

The American Recovery and Reinvestment Act of 2009 offers some short-term tax benefits designed to encourage consumer activity and boost particular sectors of the economy. You might consider taking advantage of the following temporary provisions before they expire.

Homebuyer tax credit — Americans who have not owned a home during the last three years may claim a refundable $8,000 tax credit for the purchase of a principal residence, as long as the home is not sold within 36 months of purchase. This credit phases out for single filers earning more than $75,000 and joint filers earning more than $150,000. (Purchases from January 1, 2009, through November 30, 2009, qualify.)¹

Deduct your new ride — Buyers can deduct state and local sales and excise taxes for one new vehicle purchased in 2009 (after February 17). This includes cars, SUVs, light trucks, and even motorcycles or RVs — up to the first $49,500 of the vehicle purchase price. The deduction phases out for single filers earning more than $125,000 and joint filers earning more than $250,000.²

American Opportunity Tax Credit — Families with hard-working college students will appreciate this incentive for higher education. It temporarily increases the former HOPE Scholarship credit from $1,800 to $2,500 per year for single filers earning less than $80,000 and joint filers earning less than $160,000.³

1–3) CCH, 2009

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by StoneRiver–Emerald. © 2009 StoneRiver, Inc.