2009, 2010 Economic Stimulus Refund Package

Although the stimulus package has not been approved or put in to action yet, it does have some interesting components to it. Barack Obamaʼs recommendations for a 2009 stimulus package include many tax breaks for American citizens. He is hoping to put together a two year plan to get the economy going again. His plan is hoping to create jobs and save jobs while improving schools, roads, and solar energy use.

The Stimulus Package

The package would begin with immediate tax breaks, mainly for the middle class or those who make under $250,000.00 per year. The proposed plan would suspend penalties for early cash outs of retirement accounts. This would help put more cash back in to the pockets of consumers without having to pay more taxes on the money.

The plan would offer a tax credit to companies that are hiring new full time employees. They could receive up to $3,000.00 for each new hire. Unemployment benefits would be extended for up to thirteen weeks with a break on the taxes that are normally paid on these benefits. There would also be a 90 day extension on home foreclosures.

Obama has also proposed a tax holiday to be part of the stimulus package as well. This tax break could be worth up to $500.00 for individuals $1,000.00 for couples. It would be a temporary break on social security tax that is paid on earned income.

We can anticipate a pretty costly stimulus package that may or may not contain all of these proposals. Some of the tax breaks you may see as soon as you file your return in April of 2009.

You can visit TurboTax Online this tax year to get all of the up-to-date tax information when filing your return. TurboTax Online will automatically alert you if you qualify for any new stimulus tax payments.