The proposed Economic Stimulus Plan includes $300 billion in tax cuts. What can this mean for individual seniors?
- Anyone earning less than $75,000/year gets a $400 tax cut (to a limit of $800/household).
- Anyone receiving Social Security (including the disabled, older veterans and Supplemental Security Income beneficiaries) qualifies to receive a one-time $250 payment.
- Anyone who qualifies as ‘working poor’ will receive an expanded earned income tax credit (from 40 to 45% of qualifying income).
- Anyone who is studying and earns under $80,000 receives an expanded education tax credit (ranging from $1,800 to $2,500) to cover more educational expenses in 2009 and 2010. If you earn over $90,000, you don’t qualify for this credit.
- Anyone who is buying their first home as their primary residence between January and June 2009 with income between $75,000 and $95,000 ($150,000 to $170,000 if married and filing a joint return) receives a tax credit of $7,500. This credit does not need to be repaid.
- Those who pay the higher alternative minimum tax may get relief if
their tax bill is reduced by tax credits, exemptions and deductions for
especially high property taxes.