Friday, April 24, 2009

Understanding the Stimulus

The economic stimulus package was signed into law earlier this year and many taxpayers are under the impression that they will be receiving a check this year just like the last stimulus package signed in 2008. The 2009 stimulus is setup a little bit differently; taxpayers with W-2 income will see an increase in their paychecks for 2009 and 2010. The increase will be based on the taxpayer’s filing status but will range from $45 to $65. So in a nutshell there will NOT be a check sent to anyone with a W-2.

Who will receive a stimulus check are recipients of Social Security, Veterans and Railroad retirement. The payment will be in the amount of $250 and only those taxpayers who were already receiving retirement benefits by January 31 of 2009 will get a check. Small business owners (Schedule C filers) will want to make tax payment adjustments so be sure to speak to your tax advisor to devise a plan and take advantage of the stimulus changes.

Keeping Your Business N Synergy
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