Stimulus Bill

The New York Times has a list of the major provisions in the most recent stimulus bill expected to be passed by the House and Senate on Friday. Here are a few key items:

Income Tax credit of $400 for individuals / $800 married couples. Phases out on income over $75,000 for individuals / $150,000 for married couples. It is a refundable credit – so you do not need to owe taxes in order to receive the refund.

Feds will subsidize up to 65% of your COBRA costs for up to nine month if you lose your job between 9/1/08 and 12/31/09. Your income cannot be more the $125,000 individuals / $250,000 married couples.

Social Security refundable $250 tax credit for retirees and disabled people.

Ability to deduct state and local sales taxes on NEW car purchases.

Higher education tax credit

Expansion of 529 plan – additional expenses such as computers & software permitted.

First-time home buyer tax credit of 10% of purchase price up to $8,000 between 1/1/09 and 12/1/09.

Alternative Minimum Tax fix to prevent millions of taxpayers from having to pay the AMT in 2009.

According to CNN the vote is scheduled for the House and Senate tomorrow.

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