Stimulus bill: American opportunity tax credit

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We will be getting a stimulus package soon enough as the Senate and the House wrap up their bill on tax credit and rescue plan for the population. Almost everyone is cover in this tax credit plan and that means high income and low income family. It’ll depends on the types of transactions that you’ll be involved in.

The plan include an increase of earned income tax credit from 40% to 45% for low income family with three or more children. This also include marriage penalty relief for couples who would qualify with this deal.

If you’re not working you’ll also get health insurance coverage under Cobra. This plan allow laid off workers to continue the health care plan by their employer for a length of time. The plan will give government subsidy, 50% premiums for a year for unemployed individuals. You will also get help for expanded Medicaid rolls for unemployed workers who can’t afford health care on their own.

You’ll also get unemployment benefits for an extra 20 weeks and 13 more weeks if you live a state that has a high unemployment rate which is about 30 states in the U.S.

You’ll also get an extra $25 on top of the $300 that most of us are receiving for unemployment benefit. In addition, the first $2,400 would be exempt from federal income taxes.
The bill would also cover unemployment insurance for part -time workers and those who quit their jobs for family reasons.

The bill would also pay an extra $71 dollars on top of the $588 per month benefit for food stamp recipient. The plan will also give out $2.3 billion dollars to states to provide welfare program funding for Temporary Assistance for Needy Families. This provision provide cash to the needy.

Source: http://money.cnn.com/2009/02/11/news/economy/stimulus_individuals/?postversion=2009021105

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