Tax Credit Check 2009
July 7th, 2010
Question: Will there be a 2009 tax stimulus rebate?
I know this has already been asked, but most of the answers are from 3 months ago. I see websites saying will get a tax credit next year and others saying we’ll get a check and others saying we get nothing at all except a TINY bit less taken out on our taxes. So what is it really?
Answer: None of the above.
Obama released his stimulus plan, and they mostly are tax credits for buying things that will stimulate the economy. That means you will pay the government less in income taxes if you purchase certain items. For example, if you are buying your first house, you will pay $8,000 less in income tax for 2009. If you install a solar system or wind generator on your house, you will pay $3,500 dollar less in taxes, depending on how much your wind / solar system cost you. Buy a brand new car off of the show room floor, and you will pay less income tax equal to the amount of state sales tax you paid on the new car.
So on almost all of the tax breaks, you must first purchase something to stimulate the economy. If you don’t purchase anything, you don’t get the tax break. So Obama’s plan basically benefits only those wealthy enough to purchase expensive things.
The amount of with holding ( taxes taken out of your pay check ) was reduced. But the tax schedules were not lowered, so you will have to pay taxes on the money not with held from your pay check at the end of the tax year. That gives you a few dollars more to spend, but you should be saving those few dollars to pay back at the end of the tax year.
Most people don’t realize that with less money being with held out of their pay check, at the end of the year, the may have to pay money to the government to meet the taxes owed. They won’t get a refund because less money was taken out of their pay checks.
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