What are the tax benefits of the new stimulus package?
The IRS issued revised federal withholding tables and Advanced Earned Income Tax Credit tables that
will lower the amount of federal income tax withholding, and businesses are to utilize them no later than
April 1, 2009.
The credit is 6.2% of earned income, up to $400 per person per year for singles, and up to $800 for
married couples. The credit phases out for higher wage earners.
50% bonus first-year depreciation for assets purchased in the current year.
Businesses under $15 million in gross receipts for 2006-2008 can carry back 2008 losses for 5 tax years.
Asset expensing continues its $250K ceiling through 2009.
Work opportunity credits have been expanded to include both veterans and disconnected
youths (16 to 25) who are unemployed.