President Obama has been in office for a little over a year now, and his administration has unrolled a myriad of programs and legislation in the hopes of restoring confidence in the economy. The $787 billion stimulus package contains an exhausting list of relief initiatives, but many of us have been left wondering if any of these proposals will provide direct relief to those affected by the recession.
While the bulk of stimulus funding is channeled through third-party recipients such as businesses and state and local governments, the stimulus package does contain a number of programs that will directly affect you and your budget:
TAXES/BENEFITS
1. $116 Billion dollars has been set aside for the Making Work Pay Tax Credit - Individuals making less than $75,000 a year and $150,000 for married couples will receive up to 6.2 percent of earned income back, which averages to a $400 savings for individuals and $800 for couples. Here’s how to figure out how much you’ll get.
2. Families can subtract $1,000 from their annual taxes for each child in their household.
3. The Earned Income Tax Credit will be increased from 40 to 45 percent for the first $12,570 earned by families with more than three children. EIC Outreach provides this handy calculator to figure your savings.
EDUCATION
4. The maximum Pell Grant amount has been increased by $500. College students can now receive up to $5500 for their education costs. Here’s the rundown from educationgrant.com.
5. The College Work-Study Program has received $300 million, which will help students that are supporting themselves through college.
UPDATE: The American Opportunity Tax Credit allows students to claim up to $2500 in college expenses. Find Out How To Get It.
TRANSPORTATION/ ENVIRONMENT
6. Several states will collectively receive $8.4 billion to build new public transportation services or improve existing infrastructure. For California and Florida residents, billions of dollars will be channeled to high-speed rail projects, which once in place will drastically reduce traveling costs. Check out Stimulus Watch to find who is receiving money in your city or neighborhood.
7. Planning on purchasing a plug-in hybrid car? The stimulus package devotes $2 billion to reward an environmentally-friendly car purchase with a $7,500 tax credit. Here’s How To Get It.
8. The bill sets aside $300 million in rebates for those who purchase energy-efficient appliances: yet another incentive demonstrating that going green will save you some green. Click here for a list of qualifying appliances.
9. According to CPAAmerica.org, the government has increased the credit percentage from 10 to 30 percent for 2009 and 2010 for people adding renewable energy projects like solar, geothermal, and wind to their properties.. The maximum credit is also increased from $500 to $1,500.
HOUSING
10. First-time home buyers that make less than $75,000 individually or $150,000 for married couples will receive a tax credit of up to $8,000.
11. Lower-income families can take part in the $5 billion “home weatherization” program, which provides funding to improve household energy efficiency. Projects like adding windows and insulation will help families permanently reduce their monthly energy bills. Check here for details.
Here’s our chart of places to get stimulus money in 2010. Feel free to share this.
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For more information on how these initiatives will directly affect you and your budget, check out the New York Times’ comprehensive overview of the stimulus package: This page provides a history and background of the stimulus bill, several charts and graphs, and an archive of articles concerning the economy, All in all, it’s a really great resource that breaks down the complexities of the bill.
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