Colorado's economic stimulus benefits : Rooftop Views

Rooftop Views

Colorado's economic stimulus benefits

Colorado is preparing to spend their $2.85 billion share of the $800 billion American Recovery and Reinvestment Act on everything from road repairs to food stamps. This sum includes $752 million to help Colorado pay the bills and cover the state budget deficit without laying off teachers or reducing Medicaid benefits. Construction focusing on highway and bridge repairs gets $404 million. $100 million will go toward making more homes energy efficient. Millions more is coming for job training and to extend unemployment benefits.

Below are more ways American’s can boost their bottom line:

An Incentive for Home Buyers

A tax credit of up to $8,000 for first-time home buyers has been extended through November, 2009.

More in Your Paycheck

Starting in the second half of this year, you’ll see a reduction in the amount withheld to cover income taxes-up to $400 for individuals and $800 for couples both in 2009 and 2010.

Help for the Laid-Off

Those who remain on their former employer’s health insurance plan will get a 65% subsidy for up to nine months. The first $2,400 in unemployment insurance benefits this year will be tax-exempt.

Something for Retirees

If you collect Social Security, Supplemental Security Income, or veterans’ disability or retirement benefits, look for a $250 check this summer.

A Break on College Tuition

A beefed up Hope credit will max out at $2,500, up from $1,800. Qualifying income limits will rise to $80,000 for singles and $160,000 for couples. In 2009 and 2010 you may use money in your 529 account to purchase a computer or internet access for your college student.

Read more at the IRS website; http://www.irs.gov/publications/p970/ch02.html

Earned Income Tax Credit (EITC)

Single or married people who worked full time or part time in 2008 can qualify for the EITC depending on their income.

Workers who are raising one child* in their home and have family income of less than $33,995 (or $36,995 for married workers) in 2008 can get an EITC of up to $2,917.
Workers who are raising more than one child in their home and have family income of less than $38,646 (or $41,646 for married workers) in 2008 can get an EITC of up to $4,824.
Workers who are not raising children in their home, and are between ages 25 and 64 on Dec. 21, 2008, and have income below $12,880 (or $15,880 for married workers) can get an EITC of up to $438.

Workers with investment income exceeding $2,950 in 2008 may not claim the EITC.

* Qualifying children include: sons, daughters, stepchildren, grandchildren and adopted children. Brothers, sisters, stepbrothers or stepsisters -- as well as descendants of such relatives -- if they were cared for as members of the family.