President Barack Obama's $787 billion Stimulus Plan will affect your revenue taxes in regards to preparing your 2009 tax returns.  Like any other tax credit its usage is based upon tax rules and regulations a few of which will be addressed in this article.  It is highly suggested that as each personal financial situation is different that you see a tax professional or do extensive research before filing your taxes.  This article is written for your general information and is not in any form or manner designed to guide you in the filing of your personal income taxes. Tax credits received in 2009 will not be construed as tax credits until the year 2010.

If you receive a payment in 2009 from President Barack Obama's Stimulus Plan, it  is not taxable for federal income taxes and serves to reduce your recovery rebate credit.

The withdrawal of an economic stimulus payment from a tax favored account by the due date of your return along with extensions will not be taxed and no additional taxes or penalties will be applied.

Your standard deduction will be increased by any real estate taxes that you paid.

If you were fortunate to have an IRA account, you can rollover distributions from an eligible retirement account into an IRA.  However, the rollover is not tax free.

The Internal Revenue Service has changed several of its addresses and you may be sending your tax return to new addresses.  Please make sure that your tax preparer or that you use the envelope that the Internal Revenue Service sends with your tax packages.

The capital gain distributions tax rate has been reduced for 2008.  The usual 5% tax rate is reduced to $0 on qualified dividends.

If your permanent residence is in the state of Kansas, temporary tax relief have been enacted as a result of the May 4, 2007 tornadoes and storms affecting the area.  However special rules for withdrawal of the tax benefits apply as well as to loans from IRA's and other qualified retirement plans.

In addition, disaster tax relief is being distributed to midwestern regions as a result of severe tornadoes, floodings, and storms after May 19, 2008 and before August 1, 2008.

The maximum investment income you can have under the Earned Income Credit has increased.