How Does Obama's 2009 Stimulus Package Affect You?

Even if you are one of the people who have not been adversely affected by the recent economic decline in a significant way, there are ways that you might be able to benefit from the effects of Obama's stimulus package. The main purpose of the stimulus package is to inject the economy with some consumer spending. There is special focus on the housing and car markets, where builders and manufacturers have suffered some of the greatest losses in recent months. This is where folks in stable financial situations can benefit the most.

One of the main provisions in the stimulus package provides tax credits for first time homebuyers. People who decide to purchase their first home this year will benefit from a generous change in the first time homebuyer tax credit. Whereas the first time homebuyer credit used to be $7500 and required the taxpayer to repay the tax credit, the new homebuyer tax credit was increased to $8000. Moreover, the tax credit no longer needs to be repaid. As long as the taxpayer decides to stay in the home as his or her primary residence for at least three years, then the taxpayer is home free.

If you are interested in purchasing a new car, those who decide to purchase a new car or truck will have the chance to deduct the sales tax on the car. This will especially benefit those who live in states with high state taxes. Make sure to check the taxpayer limitations for both of these credits, as both of the credits start to phase out for higher income taxpayers. For people who significantly use public transportation, the stimulus bill expands the tax benefits for employees. The money spent on transportation is considered tax free, regardless of whether the employer pays for the benefit.

Source:ezine