Of the new $787 billion dollar economic stimulus package, or American Recovery and Reinvestment Act of 2009, approximately 35 %, or $282 billion dollars is in tax relief measures that will affect 95% of the U.S. population.
“The package includes tax saving breaks for big-ticket purchases like cars and first-home purchases,” said John Hewitt, Founder and CEO, of Liberty Tax Service.
Other highlights include:
Credit for Workers:
A refundable tax credit of up to $400-per-worker for lower- and middle-income working taxpayers and up to $800 for working couples.
Payments to Recipients of Social Security, SSI, Railroad Retirement and Veteran’s Disability and Certain Federal and State Pension:
These taxpayers will receive a payment of $250 but, if also eligible, the $400 credit will be reduced by this amount.
Earned Income Credit Increase:
Earned income credit amounts will be increased for working families with three or more children.
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