The American Recovery and Reinvestment
Act of 2009For Immediate Release
Baton Rouge, LA - August 18, 2009
The IRS is implementing the tax-related provisions of the American Recovery and Reinvestment Act of 2009 (ARRA) as quickly as possible. More information on these and other provisions of the recovery program will be available on the IRS Web Page as it becomes available.
Information for Individuals
Some of the provisions of the law primarily affect individuals.
- Making Work Pay Tax Credit. This tax credit means more take-home pay for many Americans. To make sure enough tax is withheld from their pay, taxpayers can use the IRS withholding calculator. See Making Work Pay for more.
- First-Time Homebuyer Credit Expands. Homebuyers who purchase in 2009 can get a credit of up to $8,000 with no payback requirement.
- Money Back for New Vehicle Purchases. Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales taxes they paid or other taxes and fees they paid in states with no sales tax.
- Enhanced Credits for Tax Years 2009, 2010. Find details on the earned income tax credit, additional child tax credit and the American Opportunity Credit, a new higher education benefit.
- Increased Transportation Subsidy. Employer-provided benefits for transit and parking are up in 2009.
- Up to $2,400 in Unemployment Benefits Tax Free in 2009. Individuals should check their tax withholding.
- $250 for Social Security Recipients, Veterans and Railroad Retirees. The Economic Recovery Payment will be paid by the Social Security Administration, Department of Veterans Affairs and the Railroad Retirement Board.
- Energy Efficiency and Renewable Energy Incentives. See what individuals can do to reap tax rewards.
- Health Coverage Tax Credit. The credit increases from 65 percent to 80 percent of qualified health insurance premiums, and more people are eligible.