What Will You Get From The $787 Billion Stimulus?

Barack Obama Economic Stimulus The banks and auto makers are getting huge bailouts. What’s in the economic stimulus package for you personally?

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Published: Fri, March 06, 2009 - 6:11 pm CST

WASHINGTON – As $787 billion in economic stimulus money flows from Washington, you may benefit from additional spending on new roads and community programs.

But, what’s in it for you, personally? Here’s a look at how individuals will benefit.

Workers
You won’t get a check in the mail like last year’s tax rebate. But you will see a few extra dollars in your paycheck, beginning this spring.

The Making Work Pay tax credit provides a tax break of $800 for couples filing jointly and $400 for individuals. President Barack Obama has said 95 percent of working families will realize a tax break, and the Internal Revenue Service says most workers will qualify for the maximum.

Employers will handle the change to withhold less money from your paycheck. The IRS is asking employers to make the change by April 1, which would be equal to about $10 a week extra in a person’s paycheck.

The process should be seamless and taxpayers should not see $400 or $800 deducted from refunds or added to the amount of taxes they owe next year, said Tom Ochsenschlageo, vice president of taxation for the American Institute of Certified Public Accountants.

“You should be in the exact same position,” he said.

The credit will be phased out starting with an adjusted gross income of 75,000 for individuals and $150,000 for married couples, the IRS said.

Workers can receive the credit in 2009 and 2010, and the amount of the credit must be reported on the employee's on income tax returns for those years, according to the IRS.

Social Security Recipients and Disabled Veterans
Even if you don’t work, you may be eligible for a one-time payment of $250. This includes:

- People who receive benefits from the Social Security Administration, including retirees, the disabled and Supplemental Security Income recipients. Children under 18 who receive Social Security benefits are ineligible, but disabled children who receive SSI are eligible, according to the Social Security Administration.

- Disabled veterans who receive benefits from the Department of Veterans Affairs.

- Recipients of Railroad Retirement benefits.

To be eligible, you must have received benefits in November and December 2008 or January 2009. The payment will come from the agency that sends your usual benefits. You will receive only one payment, even if you fall into several of the above categories.

According to the Treasury Department, 64 million people are eligible for payments that will be issued starting in May. The payments should arrive by the end of June. The payment will come the same way your current benefits are delivered now, either electronically or by check.

The payment will not be counted as gross income on your taxes.

Unemployed
The stimulus is paying for many programs to help the unemployed -- including job training, extended unemployment benefits and reduced payments for continuing health coverage. The amount an individual may receive varies widely, depending on your family’s income, how long you’ve been unemployed and where you live.

Contact your state’s unemployment office for more information.

Scams
The Federal Trade Commission warned this week that scammers are advertising online and through e-mail that they can help you qualify for a payment from the stimulus. Don’t fall for it any of it, the FTC urges.

The messages and Web sites typically ask for bank account information so that the operators can deposit your share of the stimulus money into your account. Instead, the scammers drain your account, the FTC warns. Another scam purports to be the federal government, asking you for personal information to verify whether you qualify for stimulus money. The FTC advises not to give out personal information on the phone, through the mail or online unless you know who you are dealing with.

Visit these Web sites for more information
U.S. Treasury
IRS
Social Security Administration
Veterans Administration
Railroad Retirement Board
Department of Labor
Federal Trade Commission

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FastFred Says:

Sat, Mar 14, 2009 at 2:36 pm

The only thing I need from the stimulus plan is the major portion of my pension I have lost due to this finical melt down.To be exact it would be 3/4’s of it.

Alabama Patriot Says:

Mon, Mar 09, 2009 at 7:11 pm

Reprint from another news topic on the stimulus-

“Aren’t most of the jobs being created with the stimulus temporary or contract-type jobs? The construction jobs only last until the jobs are completed. Won’t this money dry up, too? If so, people will become unemployed and add to the unemployment lines. It would make more sense to give it to the tax payers, so that we can spend it in our communities and create a demand for goods and services once again. Building a bridge is okay for the state, but it doesn’t do anything for the shortage of money in the marketplaces. If we got the money, we could sure make a positive impression in our local stores and communities.’

The creation of full-time jobs with full benefits would be a plus for the economy, but the government did not promote this idea at all.

The money that we will expect to receive in our paychecks will be hardly noticeable and definitely will not encourage us to buy houses, cars, or invest in anything of high value.

Razorsharp Says:

Fri, Mar 06, 2009 at 7:52 pm

...“The process should be seamless and taxpayers should not see $400 or $800 deducted from refunds or added to the amount of taxes they owe next year,...”
LAUGHING…BECAUSE OF THIS:

...“Workers can receive the credit in 2009 and 2010, and the amount of the credit must be reported on the employee’s on income tax returns for those years, according to the IRS….”

Did anyone else catch this? Are you awake? HELLO?
They really do think we are just that stupid. Need me to explain it? I didn’t think so…