New Stimulus Package

[Kate and Pete]

What does this mean for the average tax payer (other than the fact that we're going further into debt....)?

 

[tinkntraining]

About $20 bucks more in your take-home pay every payday, thanks to a change in the withholding law, as I understand it. Effective this summer, I believe.

 

[TupperMom7]

Well, I don't think we'll be getting any lump sum checks for $600 per person this time.

 

[NiftyJ88]

*shutting my mouth to avoid saying not nice things*

 

[dakjoskaimiksmom]

Is that $15,000 new/existing homeowner credit still in the "New Deal"?

(Not that we'd get the whole thing anyway--our house was a fixer-upper, so 10% is only $6700).

 

[my3sonsagn]

I haven't seen actual details of it yet, and I'll keep my mouth shut as to how I feel about it, but the one thing I hope is still in it (since it's going to pass regardless of my feelings on it) is the 10% tax credit (up to 15k and includes existing as well as new homes) for homebuyers since we're trying to sell 2 houses. Another ammendment that I heard about but don't know if it is still in is the deduction of sales tax and interest for buying a new car (actually heard about this one on the radio while we were driving home from Disney on 2/4).

 

[RitaE]

from what I've seen, about $20 to $25 per paycheck assuming you get paid every other week or twice a month.

For your Grandchildren, more debt to repay.

 

[CarolA]

I did some digging this AM.

What I found (which was all not confirmed) was that the new home buyer credit was there.
Could NOT find out what happened to the car credit (Which is what I was looking for. I probably will buy a car in the next few years. If I can deduct the sales tax then this might be the year!)

 

[tink2]

Haven't watched the news in several days and I won't begin to give my opinion on it all... but, do want to know:
What is the thing that is $1000 for families- is that still in there? Is that a check you'll get if you don't make over a certain amount?

 

[wdw_dine_junkie]

I haven't seen actual details of it yet, and I'll keep my mouth shut as to how I feel about it, but the one thing I hope is still in it (since it's going to pass regardless of my feelings on it) is the 10% tax credit (up to 15k and includes existing as well as new homes) for homebuyers since we're trying to sell 2 houses. Another ammendment that I heard about but don't know if it is still in is the deduction of sales tax and interest for buying a new car (actually heard about this one on the radio while we were driving home from Disney on 2/4).

Sales tax on major purchases, like a car, is already tax deductible for the purchase year. At least it better be, Turbo tax told me so! I haven't filed yet, so if it's wrong I can still fix it. Interest would be nice though..

Cheshire.. you're a tax guru, can I claim the sales tax I paid on my car purchase last year?

 

[CarolA]

Sales tax on major purchases, like a car, is already tax deductible for the purchase year. At least it better be, Turbo tax told me so! Interest would be nice though..

Not if you live in a state with income tax. It's one or the other.....

 

[bridget]

I think the tax credit for purchasing a house could really help some people that need to sell, and then help people wanting to buy!

 

[Lehuaann]

Is that $15,000 new/existing homeowner credit still in the "New Deal"?

(Not that we'd get the whole thing anyway--our house was a fixer-upper, so 10% is only $6700).

New or existing homes will qualify for homebuyers...not homeowners. The purchase has to be new.

 

[ncbyrne]

DH is retiring next month...last day of work is March 31. Somehow I doubt this will personally do any good at all for people in our circumstances. The whole stimulus package is ridiculous!!! WHAT are these politicians thinking!

 

[wdw_dine_junkie]

Not if you live in a state with income tax. It's one or the other.....

Ah, that makes sense. No state taxes in FL, so I guess I can claim the sales tax on my car.

 

[Belle1962]

Not to start a debate on immigration but I just laugh when I hear about "shovel ready" projects. How much money will stay in our economy from these projects? Have they (Obama, Congress, et al) ever driven by a road crew or crew working on building a house--at least here in the South? A large part of the money earned will go where it has always gone--back to the home countries of these workers for their families to spend THERE and not here. They usually keep only enough for themselves to live on--food & shelter here.

If the tax credit helps me sell my house fine with me--but I need the banks to release some money so I can get a mortgage for another house--otherwise my house won't be up for sale.

 

[aka-mad4themouse]

I can see this thread becoming a political discussion. Since discussions of that nature belong on the CB, I'm going to move this thread over there so that it can continue.

 

[petchie]

do most people realize the the house tax credit is actually an interest free loan? It must be repaid over 15 years.

You do not get the tax credit when you close on your house. You get the tax credit when you file your federal income taxes for the year 2008 or 2009, depending on when you buy your home. Note: If you buy a house in 2009 after filing your 2008 taxes, you can file an amended 2008 tax return to claim the credit if you choose.

The homebuyer tax credit is a refundable credit that can lower the amount of federal income taxes you owe or even result in a cash payment:

If you qualify for a credit that is less than you owe in taxes, the credit will reduce your tax liability
If you qualify for a credit that is more than you owe in taxes, the government will pay you the difference
If you qualify for a credit and do not owe any federal income tax, the government will pay you the full credit amount
You must file a federal income tax return to get the credit, even if you don't owe any income taxes.

You must start paying back the credit two years after the year you bought the house. You pay back the credit over a 15-year period as an additional tax on your tax return. If you claim a $7500 credit, for example, you must pay back about $500 per year. Note: The tax credit is basically a 15-year interest-free loan from the government.

If you stop living in the house as your primary residence, or if you sell the house before the 15-year repayment period is over, you must pay back the balance of the tax credit in full. In special situations, you do not have to pay back the full amount (for example if you do not make enough profit from the sale of the house to pay back the credit, or if the taxpayer dies).

 

[my3sonsagn]

The new "expanded" house purchase credit has different rules than the last one. Per http://www.federalhousingtaxcredit.com/

Congress is actively considering an expanded home buyer tax credit, and the Senate has approved the following improvements:
The tax credit amount increases to $15,000.
The tax credit is extended to anyone buying a principal residence.
The tax credit will apply to all purchases occuring within a year after the bill is signed into law.
It is a true tax credit; it does not have to be repaid.

So, not a loan, is available for use on new AND existing homes, and available to anyone purchasing a home as a primary residence - not just first time buyers.

 

[golfgal]

About $20 bucks more in your take-home pay every payday, thanks to a change in the withholding law, as I understand it. Effective this summer, I believe.

Well, that's one more tank a gas a month I guess.

Not if you live in a state with income tax. It's one or the other.....

Actually that isn't true, you can take which every is higher, sales tax credit or the standard deduction. Unless you make some major purchases the standard deduction is generally higher. I just put some numbers into Turbo Tax today to gestimate our refund this year and this was in there.