Boston Bankruptcy Lawyer

2009 Stimulus Plan and Taxpayers

This week, President Obama signed his stimulus package into law in an effort to get the economy moving again. After weeks of political grandstanding and bickering, the House and Senate somehow managed to pass a bill and then agree on the changes to be made to it.

Overall, a huge number of people will receive a tax cut and then a tax credit. If a person makes less than $75,000 or a couple that files jointly makes less than $150,000, a tax cut is almost guaranteed. For the 2009 and 2010 tax returns, individuals and couples that are employed can receive tax credits of up to $400 and $800 respectively.

Unlike many tax credits which are handed out in a lump sum, this tax credit is going to be applied directly to a taxpayer’s paycheck, once employers adjust withholding taxes. This will give each person roughly $14 more dollars per week in his or her paycheck. While it may not seem like a lot, it could make a big difference in a person’s lunch budget or coffee budget leaving that money for other things.

Individuals with children in college can receive a tax credit of up to $2,500 for tuition and related expenses. Low-income families can see an increase in the total Pell Grant amount given to children as well. Pell Grants are government grants for low-income families that are designed to help people go to college.

Contact a Boston Bankruptcy Lawyer

If you are in a dire financial situation and are contemplating filing for bankruptcy, contact the Boston bankruptcy lawyer of Joshua Spirn & Associates at 1-800-975-5346 to decide which chapter is best for your current situation.