The new emergency economic bailout plan will not only help out the large corporations in trouble, it may also help individual taxpayers. This new bill is expected to be passed by the end of the year and offers new tax breaks as well as extensions to previous tax breaks.

It is called the Emergency Economic Stabilization Act of 2008 and it will include some of the following breaks:

• Many taxpayers will not be required to pay the AMT (Alternative Minimum Tax) again this year.

• There will be a $250.00 deduction available for teachers who have purchased classroom supplies out of their own pocket.

• Deductions available up to $4,000.00 for college tuition and expenses. Allows married couples that make up to $130,000 to take this deduction.

• Tax Free IRA distributions to charities. $100,000 can be paid annually directly to charity.

• Large tax breaks for victims of natural disasters. Includes deductions for clean up, housing, and demolition)

• The choice to deduct either state income tax or state and local sales tax if you itemize.

The Alternative Minimum Tax adjustment will be an extension from previous years. This tax has not been redesigned but will be adjusted for the current time. The minimum tax was once intended for the wealthy but has since worked its way in to the middle class so this extension is necessary in our current economic state.

The total relief from the emergency economic stabilization act could be worth more than $150 billion dollars in benefits to taxpayers.

TurboTax online offers free tax advice & tips. Please visit TurboTax Online to find out about the new tax breaks available.