The economic-stimulus plan President Obama signed isn't going to feel like a windfall to most Americans. For those who collect a paycheck, the $45 extra per month will be more like a pleasant surprise. But it's still smart to know the timing and amount of tax breaks and other benefits.
| Row 0 - Cell 0 | 5 Things to Know About the "Making Work Pay" Tax Credit |
| Row 1 - Cell 0 | 7 Misconceptions About the Stimulus |
For example, if you're considering buying a car or your first house, making your purchase sooner rather than later could save you thousands of dollars. If you're one of the 26 million additional taxpayers who will be able to dodge the onerous alternative minimum tax for 2009, your tax savings could help you tweak your budget. And if you're struggling to finance a child's college education, you can count on more money for grants and jobs—if you qualify.
Here's another boon: The stimulus provides a one-time payment of $250 to recipients of Social Security, Railroad Retirement and veterans' benefits, which should start to arrive in May. You'll receive the money electronically or via check. Federal-government retirees who don't get Social Security should receive a $250 credit when they file their 2009 tax returns.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Guide to the Stimulus
The New Stimulus Tax Credit
This tax break puts up to $400 in your pocket.
New Car Sales-Tax Deduction
Car buyers have till the end of the year to grab this above-the-line deduction.
Better Benefits for the Unemployed
Qualified filers get an extra $25 a week.
New Homebuyer Credit
Take up to 10% off your purchase price.
Health-Care Subsidy for the Unemployed
Now there's extra help for paying COBRA coverage.
AMT Tax Relief
Taxpayers get a one-year fix on the alternative minimum tax.
College Aid Gets Fresh Funding
Rather than introduce big new ideas, this bill mostly replenishes underfunded programs and increases amounts available to families.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
The Economic Impact of the US-China Trade WarThe Letter The US-China trade war will impact US consumers and business. The decoupling process could be messy.
-
AI Heads to WashingtonThe Kiplinger Letter There’s big opportunity for AI tools that analyze MRIs and other medical images. But also big challenges that clinicians and companies will have to overcome.
-
The AI Doctor Coming to Read Your Test ResultsThe Kiplinger Letter There’s big opportunity for AI tools that analyze CAT scans, MRIs and other medical images. But there are also big challenges that human clinicians and tech companies will have to overcome.
-
The New Space Age Takes OffThe Kiplinger Letter From fast broadband to SOS texting, space has never been more embedded in peoples’ lives. The future is even more exciting for rockets, satellites and emerging space tech.
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
What DOGE is Doing NowThe Kiplinger Letter As Musk's DOGE pursues its ambitious agenda, uncertainty and legal challenges are mounting — causing frustration for Trump.
-
A Move Away From Free TradeThe Letter President Trump says long-term gain will be worth short-term pain, but the pain could be significant this year.
-
Trump’s Whirlwind Month of Crypto MovesThe Kiplinger Letter The Trump administration wants to strengthen U.S. leadership in the cryptocurrency industry by providing regulatory clarity.
