Many first time home buyers don’t know what benefits are available in Obama’s Stimulus Package. So I did some investigation and discovered a few that will be helpful.
Last week I broke down the $8000. Federal Income Tax credit for 1st time buyers who will be purchasing a home between January 1, 2009 and December 1, 2009. In addition to that tax credit, California is offering a $10,000 state tax credit for individuals who purchase a NEW CONSTRUCTION Home (or a “previously unoccupied home”). There is only $100 million that has been set aside for this program and is on a first come – first served basis. To earn this tax credit, buyers must close escrow between March 1, 2009 and February 29, 2010. The buyers can apply the $10,000 tax credit to their state income tax returns over three successive years. That’s $3,333 each year beginning with the tax year 2009.
The economic stimulus package also includes a new tax credit, up to a combined $1500. for 2009 and 2010 for improving energy efficiency. If you buy such items as replacement windows, insulation and energy-efficient appliances, you’ll get a 30 percent credit.
If you buy a new car before the end of 2009, you’ll get a deduction for state and local sales taxes, even if you don’t itemize on your tax return. The credit however, applies only to the first $49,500 of the cost of the car.
Health care is a big issue especially with many losing their jobs. So if you lose or have lost your job between September 1, 2008 and January 1, 2010, you will be able to keep your company health insurance for nine months by paying 35 percent of your COBRA premiums instead of 100 percent. Your employer will have to subsidize the remainder, but will get a tax credit for paying the 65 percent share.
Hope this helps clarify a few of the benefits so that you can take advantage of them.