Tax Code Provisions

This is the First Post on the Individual Tax Breaks Thread, New Posts Will Appear Updating The Thread With Specifics & Additional Provisions

First Time Home Buyers - $8,000 Tax Credit (no repayment required)



Disadvantages - For First Time Home Buyers Only, Subject To Tightening Credit Standards



Car Buyers - Sales Tax Is Deductible



Disadvantages - Sales Taxes vary greatyly from State to State and not likely to benefit short-form filers or low income earners. Nationwide average is $600 in sales tax generating a net $120 - $150 Benefit for the average middle class family.





2009 Tax Credit - $400 per individual, $800 for married couples.



Disadvantages - Income phasout starting at $75,000 for a single taxpayer, $150,000 for a married couple. Break equates to just $8 per week.



2009 Tax Credit - $250 Tax Credit For Social Security Recipients and Disability Recipients



Alternative Minimum Tax StopGap Measure - Temporary extension of the Bush Tax Cuts aimed at preventing 24 million Middle Class Americans from being hit by the AMT in 2009.



Disadvatages - Temporary StopGap Measure that if not extended in the future will revert the income limits for the AMT back to their levels in 1999, thus subjecting 24 million Middle Class households to the AMT.



Education Tax Credit - Up too $2,500 tax credit in 2009 and 2010 for higher education expenses.



Disadvantages - Income phaseout at $80,000 for an individual and $160,000 for married couples. 2 year measure.



Expanded Child Tax Credit - $1,000 Child Tax Credit expanded to lower income families who pay no income taxes.



Disadvantages - Removes billions from the collection of Social Security (FICA) taxes, taxes that were intended to be held in trust for the payment of future benefits.



Expanded Earned Income Tax Credit - Expands the size of the Earned Income Tax Credit



Disadvantages - Again removes billions from the collection of Social Security (FICA) taxes.



Home Efficiency Tax Credit - Tax Credit for the purchase of energy efficient windows, furnaces or air conditioners will increase to 30% of qualified costs.



Disadvantages - Maximum of $1,500 credit. Consumers, who have tightened the belt, must actually make the purchases.