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Tax Tips: The American Recovery and Reinvestment Act of 2009

Hi everyone! Sorry this has taken me so long to post when I promised tax tips the next day. (Please forgive me...I'm working on my tardiness problem in all areas of my life. ***SIGH***)

The American Recovery and Reinvestment Act of 2009 (ARRA) introduced many tax changes--many of which are beneficial to YOU. I'm going to give an overview of some of the tax changes today, and then dig deeper into each part of the ARRA tax changes in the following days.

So, what does ARRA mean for you?

1. Making Work Pay Tax Credit-- If you have earned income, you will receive a new credit on 2009's tax return -- up to $400 per individual or $800 per married couple. But beware--you may have already received this money in your everyday paycheck throughout this last year.

2. First Time Homebuyer AND Long-Time Homeowner/buyer Credit expanded and extended -- (I'll definitely talk about this one tomorrow or Saturday) up to $8,000 and $6,500, respectively.

3. New Vehicle Purchase Tax Deduction

4. New Education Credit--The American Opportunity Credit - money you pay for books is now  included!

5. Earned Income Credit (EIC) expansions and Additional Child Tax Credit revision- EIC for up to THREE children now, and it's easier to get the Additional Child Tax Credit now.

6. Tax-Free Unemployment Benefits (up to $2400)

7. Energy (Efficiency/Renewable) Credit expansion

8. COBRA and Health Care Coverage Credits/expansion

Of course, there's much more to the ARRA of 2009, but these were the most interesting (to me) and (seemingly) far-reaching (in my realm at least...)

Of the above posted tax changes, which would you like dissected and explained (to death) first?

Do you have any deep-seated, unanswered questions that you're yearning to understand better?

I'm willing to write posts based on YOUR questions...so ask away in the comments section!

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