What Does The Stimulus Plan Mean For You?

Economy University Of South Alabama Money from tax breaks but not all at one time.

by Steve Alexander

Published: Tue, February 17, 2009 - 10:27 pm CST Last Updated: Tue, February 17, 2009 - 10:43 pm CST

Plenty of people are talking about the new economic stimulus bill President Obama signed into law Tuesday.
But what does it mean for you?
Dr. Semoon Chang, the director of the Center for Business and Economic Research at the University of South Alabama, called the plan "a February Santa Claus" because it has something for almost everyone.
Tax specialists at H & R Block said plenty of people want to know how the stimulus plan affects them.
First, it includes a $400 tax break for most individual workers and $800 for couples.
Ceceiia Paul of Mobile, said, "Yeah, that's sounds pretty good."
Linda McGilvery of Lucedale, Mississippi, said, "That will be great. At this point in time, every little bit helps."
But the cuts are coming as a reduction in the income tax withheld by your employer.
Ann Farnell of Mobile said, "We missed out on the last check in the mail. It would be nice to get one this time, but I doubt if we do."
Farnell is right.
The reduction will be spread out.
Nona Simmons with H & R Block said, "It is not going to be one check and that's one of the things everybody's been saying, 'When are we going to get our check?' It's not like last year. You won't be getting a check."
However, you will getting bigger weekly paychecks.
When asked if she thought that would help, Tracy Burnham of Mobile said, "Hopefully, it will. I'm not sure at this point. Its hard to say."
The new law also gives first time home buyers an $8,000 tax credit.
Simmons said, "That is a good incentive to go out and try to buy a house now."
The law allows you to deduct state, local, and excise, or manufacturing, taxes if you buy a new car, but Dr. Chang said, "The benefit is probably not as much as car dealers wanted."
Tax experts suggest if you have a job, meet with your human relations representative to look over your deductions so you can benefit the most from the new law.

WKRG.com » News Stream » Financial