| TAX RELIEF FOR INDIVIDUALS AND FAMILIES | | | | tax credit of up to $2,500 of the cost of tuition and |
| "Making Work Pay" Tax Credit. This bill cuts taxes for | | | | related expenses paid during the taxable year. Under |
| more than 95% of working families in the United | | | | this new tax credit, taxpayers will receive a tax credit |
| States. For 2009 and 2010, it provides a refundable tax | | | | based on one hundred percent (100%) of the first |
| credit of up to $400 for working taxpayers and $800 | | | | $2,000 of tuition and related expenses (including books) |
| for working families. Taxpayers receive this benefit | | | | paid during the taxable year and twenty-five percent |
| through a reduction in the amount of income tax that is | | | | (25%) of the next $2,000 of tuition and related |
| withheld from their paychecks or by claiming the credit | | | | expenses paid during the taxable year. |
| on their tax returns. This means that the average | | | | Computers as Qualified Education Expenses in 529 |
| working American will begin to receive more per | | | | Education Plans. This allows computers and computer |
| paycheck beginning this Spring. | | | | technology to qualify as education expenses. |
| Economic Recovery Payment to Recipients of Social | | | | Refundable First-time Home Buyer Credit. Last year, |
| Security, SSI, Railroad Retirement and Veterans | | | | Congress provided taxpayers with a refundable tax |
| Disability Compensation Benefits. This provides a | | | | credit that was equivalent to an interest-free loan |
| one-time payment of $250 to retirees, disabled | | | | equal to 10 percent of the purchase of a home (up to |
| individuals and SSI recipients receiving benefits from | | | | $7,500) by first-time home buyers. The provision |
| the Social Security Administration, Railroad Retirement | | | | applies to homes purchased on or after April 9, 2008 |
| beneficiaries and disabled veterans receiving benefits | | | | and before July 1, 2009. Taxpayers receiving this tax |
| from the Department of Veterans Affairs. | | | | credit are currently required to repay any amount |
| Refundable Credit for Certain Federal and State | | | | received under this provision back to the government |
| Pensioners. This provides a one-time refundable tax | | | | over 15 years in equal installments, or, if earlier, when |
| credit of $250 in 2009 to certain government retirees | | | | the home is sold. The credit is not for taxpayers with |
| who are not eligible for Social Security benefits. This is | | | | adjusted gross income in excess of $75,000 ($150,000 |
| a one-time credit. | | | | in the case of a joint return). |
| Increase in Earned Income Tax Credit. This temporarily | | | | Sales Tax Deduction for Vehicle Purchases. This |
| increases the earned income tax credit for working | | | | provides taxpayers with a deduction for state and |
| families with three or more children. Under current law, | | | | local sales and excise taxes paid on the purchase of |
| working families with two or more children currently | | | | new cars, light truck, recreational vehicles, and |
| qualify for an earned income tax credit equal to forty | | | | motorcycles through 2009. This deduction is limited to |
| percent (40%) of the family's first $12,570 of earned | | | | taxpayers with an adjusted gross income under |
| income. This credit is not available to working families | | | | $125,000 ($250,000 for couples filing jointly). |
| with adjusted gross income in excess of $16,420 | | | | Temporary Suspension of Taxation of Unemployment |
| ($19,540 for married couples filing jointly). | | | | Benefits. This temporarily suspends federal income tax |
| Increase Eligibility for the Refundable Portion of Child | | | | on the first $2,400 of unemployment benefits per |
| Credit. This increases the eligibility for the refundable | | | | recipient. Any unemployment benefits over $2,400 will |
| child tax credit in 2009 and 2010. For 2008, the child tax | | | | be subject to federal income tax. This proposal is in |
| credit is refundable to the extent of 15 percent of the | | | | effect for taxable year 2009. |
| taxpayer's earned income in excess of $8,500. The bill | | | | Extension of AMT Relief for 2009. The bill would |
| would reduce this floor for 2009 and 2010 to $3,000. | | | | provide more than 26 million families with tax relief in |
| "American Opportunity" Education Tax Credit. This | | | | 2009 by extending AMT relief for nonrefundable |
| provides financial assistance for those seeking a | | | | personal credits and increasing the AMT exemption |
| college education. For 2009 and 2010, the bill would | | | | amount to $70,950 for joint filers and $46,700 for |
| provide taxpayers with a new "American Opportunity" | | | | individuals. |