The recently passed 800 billion dollar stimulus bill is 65% spending, 35% tax cuts, and 100% about getting us out of this recession. The main idea is to provide some help to the poor and unemployed… and create 3 million new jobs.
But just because you already have a job doesn’t mean you’re left out. Uncle Sam’s going to put some money in your pocket, which he hopes you’ll rush out and spend.
Example? The “Making Work Pay” Tax Cut: a refundable tax credit of up to $400 per worker, $800 per couple. But it starts phasing out at $100,000 income single, 200 joint.
Own a small business? If you’re losing money now, you can go back up to five years and deduct those losses against past profits. Resulting in a Refund.
Have kids? The $1,000 per child tax credit is being expanded: you only have to make $3,000 this year to claim it.
And if your kids are in college, you’ll like the American Opportunity Tax Credit, a $2,500 credit for higher education expenses. But it phases out for high income families.
About the only help for high earners is protection from the Alternative Minimum Tax… also included in the package.
There’s even something here for people who used to work! If you get Social Security and don’t qualify for other aid, you’ll probably be getting a one-time check for $250.
Bottom line? The stimulus package is big… so big it’s got something for everyone… even people with a job.