Obama Stimulus Plan: State Results and IRS Implications You Might Not Know

The American Recovery and Reinvestment Act of 2009 (ARRA) passed by Congress and signed into law by President Barack Obama has impacted every American state and chances are has impacted you personally. As promised, the Obama Administration has compiled state-by-state results of how the ARRA stimulus plan benefits have been used. The Organizing for America Foundation for Change web site provides information about how each state used the Obama ARRA stimulus plan money to save or create jobs, provide health care for uninsured children, help students in college, and put more money in worker's paychecks.

Every state in America has access to Obama ARRA stimulus plan municipal bonds to build new schools, improve transportation and invest in energy through the Build America Bond program. In addition, through the Obama stimulus plan, states can increase the amount and length of unemployment compensation benefits. Billions of ARRA stimulus plan dollars are now being released to 12 states to clean up or decommission Department of Energy nuclear sites, creating about 13,000 new jobs and saving hundreds more jobs in each state. Check out the Department of Energy Recovery Act Clearinghouse for more information about new Obama ARRA stimulus plan projects in your state that might help you find a job.

Millions of Americans have benefited from the Making Work Pay Tax Credit that provided for less federal tax withholding in paychecks. Thousands of Americans who lost their jobs can afford to continue health care coverage by the 65% reduction in COBRA premiums offered in the Obama stimulus plan. Now, the first $2,400 of unemployment compensation in 2009 is tax free. Over a million college students are able to stay in college through the American Opportunity Tax Credit.

What You Might Not Know About the Obama ARRA Stimulus Plan and the IRS

ARRA Health Insurance Premiums

More people will qualify for a larger health insurance premium tax credit under the Obama stimulus plan. The tax credit will increase from 65% to 80% for qualified individuals. You may qualify for a 65% reduction in COBRA premiums if you have lost your job.

ARRA Making Work Pay Tax Credit

The tax credit that provides for more money in your paycheck through less federal income tax withholding may make some people owe money in 2010 instead of getting a refund. You can use this IRS Withholding Calculator to estimate what will happen with your tax refund and then submit a new W-4 to your employer with adjustments.

ARRA Work Opportunity Tax Credit: Filling Out A Job Application Has Changed

Employers now receive a tax credit for hiring unemployed veterans and disconnected youth as part of the Obama stimulus plan. Employers have until August 17, 2009 to request certification of the applicant status from the local workforce commission. If you are applying for a job, chances are the employer will ask you if you belong to a group of Americans for which they receive a tax credit for hiring. If you belong to one of these groups, you need to register for employment at your local workforce commission.

ARRA First Time Homebuyer Credit : 2009 Buyers No Longer Have to Pay It Back

If you buy your first home in 2009 and meet the income and other requirements, you do not have to repay the credit as long as the home remains your principle resident for three years. If you bought the home in 2008 and received the tax credit, you will need to repay the interest-free tax credit in 15 equal installments beginning with your 2010 tax return.

Qualifying taxpayers who buy a home before December 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. You can claim 10% of the purchase price up to $8,000 or $4,000 for married individuals filing separately. The amount of the credit begins to phase out if your adjusted gross income is more than $75,000, or $150,000 for joint filers.

ARRA Parking and Mass Transit Tax Credit

Whether your employer provides assistance for mass transit and parking or you take a tax credit for your own parking and mass transit expenses, the amount of the credit has been increased to $230 per month. The tax credit for 2010 will be higher after adjusted for inflation.

ARRA New Vehicle Tax Credit: Take it With or Without a Schedule A

The deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009 can be taken even if you do not itemize your deductions on a Schedule A. The deduction is limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle

More ARRA Benefits from the IRS

Additional ARRA benefits are available through IRS tax credits like increased earned income credit, credits available for energy efficiencies, small business tax credits, and economic recovery payments for Social Security recipients, Veterans, and Railroad Retirees. For more information about the Obama ARRA stimulus plan can help you, visit the Internal Revenue Service ARRA web site.

Sources:

Organizing for America Foundation for Change

http://my.barackobama.com/page/content/foundationforchange

Obama Stimulus Package: 65% COBRA Premium Reduction Possible

http://www.associatedcontent.com/article/1508773/obama_stimulus_package_65_cobra_premium.html?cat=3

IRS Information Related to the American Recovery and Reinvestment Act of 2009

http://www.irs.gov/newsroom/article/0,,id=204335,00.html

Stimulus Money Speeds INL Cleanup, Creates Jobs

http://www.localnews8.com/Global/story.asp?s=10107535

U.S. Department of Energy Recovery Act Clearinghouse

http://www.energy.gov/recovery/index.htm