Tax breaks for individuals
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The $787 billion stimulus package signed into law on February 17th includes nearly $300 billion in tax cuts, and some significant ones for individuals.
Some interesting provisions include:
AMT Patch – To help shield middle-income taxpayers from the alternative minimum tax (AMT), the new law increases AMT exemption amounts for 2009 to $70,950 (up from $69,950 in 2008) for married couples filing jointly and to $46,700 (up from $46,200 in 2008) for single filers.
Subsidy for COBRA – Under the new law, if you lose your job between September 1, 2008, and January 1, 2010 you’ll have the option of paying just 35% of the cost of COBRA coverage for up to nine months. The former employer will be required to pay the remaining 65%, but will be reimbursed by the government.
Enhanced education assistance – The American Opportunity education credit (previously called the HOPE credit) now covers 100% of the first $2000 of tuition and related expenses (including books) through December 1, 2009. 529 plan distributions used to pay qualified education expenses are tax free and (for 2009 and 2010) include computers and computer technology.
Other benefits help first-time home buyers, promote making your home more energy efficient, and purchasing a new car. read more about tax breaks
David Merzel, CPA, CFE, EA, is a Entrepreneurial Services Principal at Kaufman Rossin, one of the Top 100 CPA and advisory firms in the U.S.
