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What’s in it for You? The Economic Stimulus Package*
With the recent passing of the stimulus plan, here are some highlights that could save you money.
If you're thinking of buying a new home and are a first-time buyer, the stimulus package provides you with extra incentive to do so.
It's available for homes purchased on or after January 1, 2009 and before December 1, 2009.
- The tax credit is for first-time homebuyers only and needs to be repaid if you sell the house within three years.
- It's equal to 10 percent of the home's purchase price up to a maximum of $8,000.
Who qualifies—Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000.
Current Homeowners—The Homeowner Affordability and Stability Plan offers refinancing assistance and loan modification options to homeowners. Learn how UW Credit Union can help.
Sales Tax Deduction for Vehicle Purchases
Special Low Rates through May 31, 2009
The tax credit is for the purchase of a new car, light or recreational vehicle or motorcycle purchased from February 17, 2009 through the end of the year. You can deduct state and local sales tax as well as any excise tax charged in the purchase. It’s an above-the-line deduction, so even if you don’t itemize your taxes, you can add it to your standard deduction.
Who qualifies—Single taxpayers with incomes less than $125,000 and married couples with incomes less than $250,000.
Making Work Pay Tax Credits
This is a new refundable tax credit for 2009 and 2010. Its worth up to $400 for singles or $800 for married joint filers. It will show up in weekly paychecks, resulting in an increase in your take-home pay starting in Spring 2009.
Who qualifies—Adjusted gross income for singles cannot be higher than $75,000 and $150,000 for couples. Dependents claimed by other taxpayers are not eligible.
American Opportunity Education Tax Credit
This is a $2,500 tax credit for college education expenses and applies to the first four years of post-secondary education. It equals 100% of the first $2,000, and 25% of the next $2,000 paid during the tax year, up to a maximum of $2,500 per year.
Who qualifies—Individuals earning less than $80,000 and couples earning less than $160,000.
These are just a few highlights of the economic stimulus package. To learn more, visit financialstability.gov.
* Consult your tax advisor for more information.
** APR is Annual Percentage Rate. Rates valid for new loans booked March 18, 2009 through May 31, 2009 and are subject to change. $85 fee for current car loan rate modifications. Rates reflect .25% reduction for qualifying checking account.
1 48 monthly payments of $22.13 per $1000 borrowed.