Comments on: American Recovery and Reinvestment Act of 2009 Highlights http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html Personal Finance and Investing Blog Sun, 12 Feb 2012 05:06:12 +0000 hourly 1 By: Two for Tea and Tea for Everyone | The Daily Harold http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-128738 Two for Tea and Tea for Everyone | The Daily Harold Thu, 16 Apr 2009 20:07:11 +0000 http://www.mymoneyblog.com/?p=2828#comment-128738 [...] ask? Simple. People are protesting the spending going on under the new Obama administration and his American Recovery and Reinvestment Act of 2009. This is the “stimulus package” you hear about so often in the [...] [...] ask? Simple. People are protesting the spending going on under the new Obama administration and his American Recovery and Reinvestment Act of 2009. This is the “stimulus package” you hear about so often in the [...]

]]> By: Sandy http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-125639 Sandy Wed, 11 Mar 2009 16:36:09 +0000 http://www.mymoneyblog.com/?p=2828#comment-125639 Will the new withholding tables continue to the tables used to calculate income tax at the end of the year, or do we need to increase our monthly withholding so we won't be screwed at the end of the year? Will the new withholding tables continue to the tables used to calculate income tax at the end of the year, or do we need to increase our monthly withholding so we won’t be screwed at the end of the year?

]]> By: TERRI http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-125280 TERRI Fri, 06 Mar 2009 17:13:20 +0000 http://www.mymoneyblog.com/?p=2828#comment-125280 I PERSONALLY AM THANKFUL FOR EACH AND EVERY ADDITIONAL DOLLAR I CAN GET. UNFORTUNATLY I ALSO BOUGHT MY HOUSE IN 2008 INSTEAD OF 2009. I PERSONALLY AM THANKFUL FOR EACH AND EVERY ADDITIONAL DOLLAR I CAN GET. UNFORTUNATLY I ALSO BOUGHT MY HOUSE IN 2008 INSTEAD OF 2009.

]]> By: milly http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124774 milly Wed, 25 Feb 2009 02:57:58 +0000 http://www.mymoneyblog.com/?p=2828#comment-124774 wow!!!! What month can i afford medicine on social security with my $250 one time credit????? what a joke and you all be sure to run buy a home or new car with your $13.00!!!! wow!!!! What month can i afford medicine on social security with my $250 one time credit????? what a joke and you all be sure to run buy a home or new car with your $13.00!!!!

]]> By: Norm http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124725 Norm Mon, 23 Feb 2009 21:46:54 +0000 http://www.mymoneyblog.com/?p=2828#comment-124725 Ok everyone, I just filed my taxes and my tax assesor told me that this 8000.00 and 7500.00 first time home buyer tax credit works like a loan. You have to pay it back. The only thing is that they are not charging intrest but everyone that takes out this tax credit will be resposible to pay it back either directly or when you file your taxes. Look into this tax credit more before decising you have 7500 - 8000 to spend. Ok everyone,

I just filed my taxes and my tax assesor told me that this 8000.00 and 7500.00 first time home buyer tax credit works like a loan. You have to pay it back. The only thing is that they are not charging intrest but everyone that takes out this tax credit will be resposible to pay it back either directly or when you file your taxes. Look into this tax credit more before decising you have 7500 – 8000 to spend.

]]> By: Dar http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124563 Dar Fri, 20 Feb 2009 13:56:04 +0000 http://www.mymoneyblog.com/?p=2828#comment-124563 I am unemployed and have been paying COBRA insurance payments since November 2008. How do I apply for the subsidy? Are the reimbursements proactive to 2008? I am unemployed and have been paying COBRA insurance
payments since November 2008. How do I apply for the
subsidy? Are the reimbursements proactive to 2008?

]]> By: denise juarez http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124515 denise juarez Thu, 19 Feb 2009 17:28:33 +0000 http://www.mymoneyblog.com/?p=2828#comment-124515 i have a question this year is the year that minnum wage increases in july so will we still recieve this and plus the 13 or 15 dollars in our pay check every two weeks i only work 35 hrs per week ,i work for a cleaning company and my husband is retired no social security ,how would i know what i would actually get in my check when it willcome from the goverment to the company on what amount to be recieved to me by the company sincerley concernd i have a question this year is the year that minnum wage increases in july so will we still recieve this and plus the 13 or 15 dollars in our pay check every two weeks i only work 35 hrs per week ,i work for a cleaning company and my husband is retired no social security ,how would i know what i would actually get in my check when it willcome from the goverment to the company on what amount to be recieved to me by the company sincerley concernd

]]> By: Ingrid http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124403 Ingrid Tue, 17 Feb 2009 23:00:25 +0000 http://www.mymoneyblog.com/?p=2828#comment-124403 Similar to the post above, if you live in a state where they don't charge sales tax on cars to begin with (New Hampshire) , there's no incentive to buy a new car. Similar to the post above, if you live in a state where they don’t charge sales tax on cars to begin with (New Hampshire) , there’s no incentive to buy a new car.

]]> By: dmorfin http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124384 dmorfin Tue, 17 Feb 2009 19:19:02 +0000 http://www.mymoneyblog.com/?p=2828#comment-124384 I hate these 75,000 rules! It’s completely unfair for individuals who live in high market areas. The federal gov’t still assumes that 75k in California is the same as 75k in Oklahoma! I don’t think so. So it the limit adjusted gross or modified adjusted gross? How does the formula work if you make over 75k but less than the 95k limit? I hate these 75,000 rules! It’s completely unfair for individuals who live in high market areas. The federal gov’t still assumes that 75k in California is the same as 75k in Oklahoma! I don’t think so. So it the limit adjusted gross or modified adjusted gross? How does the formula work if you make over 75k but less than the 95k limit?

]]> By: mike f http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124379 mike f Tue, 17 Feb 2009 18:11:51 +0000 http://www.mymoneyblog.com/?p=2828#comment-124379 wow - the government is now giving people money to buy houses...what a sad state of affairs our country is currently in. Once a nation full of people with pride in providing for themselves and their families and entrepreneurs who could make money by providing a useful item or service to others. Now, our great country is falling into the grips of socialism and nationalized everything. We are now a country which rewards those who fail and tax those who succeed. Read Atlas Shrugged! wow – the government is now giving people money to buy houses…what a sad state of affairs our country is currently in. Once a nation full of people with pride in providing for themselves and their families and entrepreneurs who could make money by providing a useful item or service to others. Now, our great country is falling into the grips of socialism and nationalized everything. We are now a country which rewards those who fail and tax those who succeed.

Read Atlas Shrugged!

]]> By: Jared http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124331 Jared Mon, 16 Feb 2009 21:01:31 +0000 http://www.mymoneyblog.com/?p=2828#comment-124331 I see where the $8,000 credit excludes purchases from Related Persons, but the definition of Related Persons says they are only treated as such if it would result in the disallowance of losses under "section 267 or 707(b)..." - what document is this referring to? I'm looking to sell my house to my sister and her husband, who would be first time buyers. Would they be eligible for the credit since they aren't "lineal descendants"? I see where the $8,000 credit excludes purchases from Related Persons, but the definition of Related Persons says they are only treated as such if it would result in the disallowance of losses under “section 267 or 707(b)…” – what document is this referring to? I’m looking to sell my house to my sister and her husband, who would be first time buyers. Would they be eligible for the credit since they aren’t “lineal descendants”?

]]> By: Jules http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124274 Jules Sun, 15 Feb 2009 15:26:34 +0000 http://www.mymoneyblog.com/?p=2828#comment-124274 Actually, studies have shown that people are much more likely to spend money that is simply included in their paycheck than if they receive it in a "lump sum." Lump sums are much more likely to go right into a savings account. The New Yorker had an article about it. So, even though it won't be as much fun, his refund idea is more likely to stimulate the economy. Actually, studies have shown that people are much more likely to spend money that is simply included in their paycheck than if they receive it in a “lump sum.” Lump sums are much more likely to go right into a savings account. The New Yorker had an article about it. So, even though it won’t be as much fun, his refund idea is more likely to stimulate the economy.

]]> By: TFB http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124231 TFB Sat, 14 Feb 2009 17:14:33 +0000 http://www.mymoneyblog.com/?p=2828#comment-124231 @JD - You wrote "If your total tax obligation is less than 8,000, then the tax credit will only be the amount you owe." The old $7,500 credit/loan is refundable. I don't see where the new law changed that. So I would think the new $8,000 credit is still refundable, i.e. people will still get $8,000 even if their total tax obligation is less than $8,000. @James - You get $800 provided you earn at least $800 / 6.2% = $12,904, and your AGI is not more than $150k. @JD – You wrote “If your total tax obligation is less than 8,000, then the tax credit will only be the amount you owe.” The old $7,500 credit/loan is refundable. I don’t see where the new law changed that. So I would think the new $8,000 credit is still refundable, i.e. people will still get $8,000 even if their total tax obligation is less than $8,000.

@James – You get $800 provided you earn at least $800 / 6.2% = $12,904, and your AGI is not more than $150k.

]]> By: gp http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124224 gp Sat, 14 Feb 2009 15:46:20 +0000 http://www.mymoneyblog.com/?p=2828#comment-124224 That sucks for those of us who bought houses in 2008. That sucks for those of us who bought houses in 2008.

]]> By: JD http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124211 JD Sat, 14 Feb 2009 06:57:58 +0000 http://www.mymoneyblog.com/?p=2828#comment-124211 "Can someone show me where it specifically says on any website one way or another that a house bought and closed before 4/15/2009 can be filed on 2008’s taxes and get $8k credit THIS YEAR?" pg 24 - line 21 in new bill above “Can someone show me where it specifically says on any website one way or another that a house bought and closed before 4/15/2009 can be filed on 2008’s taxes and get $8k credit THIS YEAR?”

pg 24 – line 21 in new bill above

]]> By: JD http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124209 JD Sat, 14 Feb 2009 06:49:04 +0000 http://www.mymoneyblog.com/?p=2828#comment-124209 the new bill - http://www.house.gov/billtext/hr1_legtext_crb.pdf (SEC. 1006 starts on pg. 24) Amends the old bill - http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h3221enr.txt.pdf (SEC. 3011 starts on pg. 235) Here is the gist: • It is 10% of the home price up to $8,000 (8,000 is the max whether single, married, roommates, etc.) • It is for first-time home buyers – people who have had an ownership interest in their primary residence within 3 years of the purchase do not qualify. • you have to purchase by Dec 1, 2009; if it is a new construction, you have to move in by Dec 1, 2009 • if you hang on to the place for 36 months, you don’t have to pay the credit back • You can file for the credit on 2008 or 2009 tax return. • If your total tax obligation is less than 8,000, then the tax credit will only be the amount you owe. • If adjusted gross income (for the year filed on) is more than 75,000/150,000 for couples - then the formula is: - $8,000 * (1 – ((Income-75000)/20000)) -- double the 75000 for couples • A person who makes more than $95,000/year (190,000 for couples) gets $0 credit • You can’t buy from someone you are related to • you don’t have to pay it back if you are force out of the home (eminent domain, etc.) – see 26 USC 1033a • if you sell the place within 3 years, you have to pay back the credit up to up to the amount of gain made (up to the whole $8,000) (not a lawyer) the new bill – http://www.house.gov/billtext/hr1_legtext_crb.pdf (SEC. 1006 starts on pg. 24)
Amends the old bill – http://frwebgate.access.gpo.go.....nr.txt.pdf (SEC. 3011 starts on pg. 235)

Here is the gist:
• It is 10% of the home price up to $8,000 (8,000 is the max whether single, married, roommates, etc.)
• It is for first-time home buyers – people who have had an ownership interest in their primary residence within 3 years of the purchase do not qualify.
• you have to purchase by Dec 1, 2009; if it is a new construction, you have to move in by Dec 1, 2009
• if you hang on to the place for 36 months, you don’t have to pay the credit back
• You can file for the credit on 2008 or 2009 tax return.
• If your total tax obligation is less than 8,000, then the tax credit will only be the amount you owe.
• If adjusted gross income (for the year filed on) is more than 75,000/150,000 for couples – then the formula is:
- $8,000 * (1 – ((Income-75000)/20000)) — double the 75000 for couples
• A person who makes more than $95,000/year (190,000 for couples) gets $0 credit
• You can’t buy from someone you are related to
• you don’t have to pay it back if you are force out of the home (eminent domain, etc.) – see 26 USC 1033a
• if you sell the place within 3 years, you have to pay back the credit up to up to the amount of gain made (up to the whole $8,000)

(not a lawyer)

]]> By: W http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124192 W Sat, 14 Feb 2009 01:41:55 +0000 http://www.mymoneyblog.com/?p=2828#comment-124192 TFB is correct, the auto deduction is only for sales taxes. The original Senate bill allowed deduction of interest as well, but the provision was scaled back in the final bill. See page 3 of the summary: http://finance.senate.gov/press/Bpress/2009press/prb021209.pdf TFB is correct, the auto deduction is only for sales taxes. The original Senate bill allowed deduction of interest as well, but the provision was scaled back in the final bill. See page 3 of the summary:

http://finance.senate.gov/pres.....021209.pdf

]]> By: James http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124189 James Sat, 14 Feb 2009 00:52:40 +0000 http://www.mymoneyblog.com/?p=2828#comment-124189 if my filing status is "married filing jointly", but my wife doesn't work, will we get $400 or $800? if my filing status is “married filing jointly”, but my wife doesn’t work, will we get $400 or $800?

]]> By: Mike H http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124185 Mike H Fri, 13 Feb 2009 23:39:17 +0000 http://www.mymoneyblog.com/?p=2828#comment-124185 I've got one, what if I sell my fiance my house before we get married this year, do we get $8000? I'm guessing it would work if we weren't getting married until next year... Damn, it would be great to get that money, we only make $20,000 each right now... and we could effectively refinance my high rate. Someone let me know if there's anyway to pull this off. I’ve got one, what if I sell my fiance my house before we get married this year, do we get $8000? I’m guessing it would work if we weren’t getting married until next year… Damn, it would be great to get that money, we only make $20,000 each right now… and we could effectively refinance my high rate. Someone let me know if there’s anyway to pull this off.

]]> By: TFB http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124179 TFB Fri, 13 Feb 2009 21:03:46 +0000 http://www.mymoneyblog.com/?p=2828#comment-124179 @Vern - No they don't know if you qualify. Employers will get a new withholding schedule. They will withhold less. If it turns out you don't qualify, you either pay more or receive a smaller refund when you file your tax return next year. @Vern – No they don’t know if you qualify. Employers will get a new withholding schedule. They will withhold less. If it turns out you don’t qualify, you either pay more or receive a smaller refund when you file your tax return next year.

]]> By: Maury http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124177 Maury Fri, 13 Feb 2009 20:54:24 +0000 http://www.mymoneyblog.com/?p=2828#comment-124177 I wonder if they'll extend COBRA... That is really all I'm hoping for. I'm self-employed and health insurance is impossible to come by. COBRA is expensive, but it covers my family and mine is due to run out in October. I wonder if they’ll extend COBRA…

That is really all I’m hoping for. I’m self-employed and health insurance is impossible to come by. COBRA is expensive, but it covers my family and mine is due to run out in October.

]]> By: Robert http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124175 Robert Fri, 13 Feb 2009 20:45:47 +0000 http://www.mymoneyblog.com/?p=2828#comment-124175 I was seriously hoping to get more out of this. The best deals are for people that are out of work I guess. 250 for having no job and extended unemployment benefits. If you still work and pay taxes, you just have to suck it up and support those that aren't working. Funny how Michelle Obama critized the last stimulus pay out saying "what am I going to do with 600 dollars". This is even worse, what am I going to do with 400 dollars spread out over 12 months? I was also hoping to see more benefits to businesses. Maybe a reduction in payroll taxes or something directly related to hiring people. I mean, that's the point of this whole bill right? To "create or save 4 to 5 million jobs". You'd think some kind of incentives for businesses to start hiring again would have been included. All of the jobs this thing will create are government jobs or government contracts to do work for the government. The private sector got screwed on this one. They should rename this the "Goverment Recovery and Government Investment Act". I was seriously hoping to get more out of this. The best deals are for people that are out of work I guess. 250 for having no job and extended unemployment benefits. If you still work and pay taxes, you just have to suck it up and support those that aren’t working.

Funny how Michelle Obama critized the last stimulus pay out saying “what am I going to do with 600 dollars”. This is even worse, what am I going to do with 400 dollars spread out over 12 months?

I was also hoping to see more benefits to businesses. Maybe a reduction in payroll taxes or something directly related to hiring people. I mean, that’s the point of this whole bill right? To “create or save 4 to 5 million jobs”. You’d think some kind of incentives for businesses to start hiring again would have been included. All of the jobs this thing will create are government jobs or government contracts to do work for the government. The private sector got screwed on this one. They should rename this the “Goverment Recovery and Government Investment Act”.

]]> By: Harish http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124173 Harish Fri, 13 Feb 2009 20:41:45 +0000 http://www.mymoneyblog.com/?p=2828#comment-124173 I'd like to understand the $13/week tax cut. What if you have a part-time job in addition to your full-time job? Will the IRS notify my 2 employers about which one should give me the $13? I'm more concerned about one employer finding out about the other job. I’d like to understand the $13/week tax cut. What if you have a part-time job in addition to your full-time job? Will the IRS notify my 2 employers about which one should give me the $13? I’m more concerned about one employer finding out about the other job.

]]> By: Dave M http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124172 Dave M Fri, 13 Feb 2009 20:27:53 +0000 http://www.mymoneyblog.com/?p=2828#comment-124172 I've owned two homes. Anyone know if my fiancee buys her 1st house after or before we are married in July, if we will get a credit when we file? I'm sure there are some pretty complicated rules around this? I’ve owned two homes. Anyone know if my fiancee buys her 1st house after or before we are married in July, if we will get a credit when we file? I’m sure there are some pretty complicated rules around this?

]]> By: Matt http://www.mymoneyblog.com/american-recovery-and-reinvestment-act-of-2009-highlights.html#comment-124163 Matt Fri, 13 Feb 2009 19:52:32 +0000 http://www.mymoneyblog.com/?p=2828#comment-124163 Can someone show me where it specifically says on any website one way or another that a house bought and closed before 4/15/2009 can be filed on 2008's taxes and get $8k credit THIS YEAR? Can someone show me where it specifically says on any website one way or another that a house bought and closed before 4/15/2009 can be filed on 2008′s taxes and get $8k credit THIS YEAR?

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