| You've probably heard of the stimulus package | | | | $75,000 or $150,000 for joint returns. |
| because the media has been obsessed with it | | | | First-time Homebuyer credit |
| since February 17th when it was signed, but you | | | | First-time homebuyers that purchase between |
| may not know how it pertains to you. The | | | | January 1, 2009 and December 1, 2009 may be |
| American Recovery and Reinvestment Act of | | | | eligible for a credit of $8,000. Unlike the 2008 |
| 2009, as it's formally named, is a blend of tax | | | | credit, the 2009 credit does not have to be |
| cuts, spending programs and financial assistance | | | | repaid. The definition of a first-time homebuyer is |
| to states, schools and other groups. The package | | | | more generous than you may think. To be eligible, |
| is rather comprehensive so this article will only | | | | you must not have owned a principle residence |
| address three of the tax savings you may be | | | | within the three year period prior to the purchase |
| able to take advantage of. | | | | in 2009. Just like the Making Work Pay credit, this |
| Making Work Pay credit | | | | credit also begins to phase out if your income is |
| Most employees will receive a $400 ($800 for | | | | above $75,000 or $150,000 for joint returns. |
| joint returns) tax credit in tax years 2009 and | | | | New Vehicle Sales Tax Deduction |
| 2010. You should see this credit almost | | | | If you buy a new car, truck, motorcycle or |
| immediately in the form of reduced taxes | | | | motor home between February 17, 2009 and |
| withheld from your paycheck throughout the | | | | January 1, 2010, you may be eligible to deduct the |
| remainder of 2009. The IRS has revised the | | | | sales taxes. The limit of the deduction is $49,500 |
| withholding schedules that your employer uses to | | | | and begins to phase out for tax payers with |
| calculate taxes withheld from your paycheck. You | | | | modified adjusted gross income above $125,000 |
| should receive the credit automatically. The tax | | | | and $250,000 for joint returns. |
| credit begins to phase out if your income is above | | | | |