A Few Facts About Stimulus Tax Relief
The President’s 2008 stimulus package gave many American citizens a little tax relief. But was it enough to stimulate the economy by putting a few more dollars back into the system? Probably not because the amount received was not necessarily used to buy American products. Many people put the money into their savings accounts or used it to pay down their debt. Obama’s stimulus tax relief “windfall” didn’t exactly fulfill the purpose for which it was intended.
Another Obama stimulus package gives American workers a tax credit for up to 6.2 percent of their earnings. This just happens to be comparable to the percentage taken out for Social Security. The maximum amount that can be received by an individual tax payer is $400.00 and you must earn at least $6,450.00 but not more than $75,000.00 (as a single tax payer) or $150,000.00 (as a married couple) to receive the tax credit.
There are two ways to collect your tax credit. You can either elect to have it appear on your paychecks or you can claim it as a lump sum on your 2009 tax return. The IRS is encouraging companies to make appropriate changes in their payroll systems to incorporate this new tax credit information. Most people will elect to have it appear on their paychecks because they will get the money sooner than if they wait to claim it on the yearly income tax form.
The 2009 stimulus package is dependent on many things, especially if you received a stimulus check in 2008. If you did, you must know the exact amount that you received and make sure that you received all that you were entitled to. Have your life circumstances changed in any way? (For example, have you added a new baby to your family?) And, you must remember that your filing status determines the amount you will be allowed. Other conditions that affect your chances of getting stimulus tax relief for 2009 are: Were you claimed on someone else’s tax return last year and are planning to claim yourself in 2009? Did you obtain a valid social security number in 2009? If you are qualified, then your chances are excellent of receiving some type of tax relief as a direct result of the President’s stimulus package.