ARRA Provides Tax Benefits to Consumers
The American Recovery and Reinvestment Act of 2009 provides a number of tax benefits to consumers that are worth looking into if you fit into one of these categories and can take advantage of the tax credit according to the IRS. Purchasers of cars and homes should look into two of the tax credits and the unemployed get a generous tax credit also.
1. Making Work Pay Tax Credit: Most Americans saw an increase in their take-home pay in early April but should double check their withholding to make sure they are paying enough in taxes.
2. First Time Homeowner Credit: Homebuyers who purchase a home in 2009 can get a credit of $8,000 with no payback requirements.
3. New Vehicle Purchase: If you purchase a automobile in 2009 you can deduct taxes associated with the purchase including sales tax.
4. Unemployment Benefits are Tax Free: Up to $2,400 of unemployment benefits are tax free in 2009.
5. Health Coverage Tax Credit: This credit used to be 65% but has been increased to 80%. More people are eligible now so take a look at the Health Coverage Tax Credit for more information.