Congresswoman Barbara Lee Urges Residents and Businesses to Take Advantage of Tax Cuts
For Immediate Release
April 15, 2010
Contact: Ricci Graham
(510) 763-0370
Washington, DC – Congresswoman Barbara Lee (CA-09) encouraged residents of the Ninth Congressional District to take advantage of the 25 different tax cuts provided in the American Recovery and Reinvestment Act of 2009, which are part of the more than $800 billion in tax cuts that Congress has passed since last year for working families and small businesses.
Congress has enacted more than $800 billion in broad-based tax cuts for working American families. These cuts include the Recovery Act, the largest health care tax cut in history, job-creating tax incentives to spur hiring of out-of-work Americans, and tax credits and accelerated write offs for small businesses.
“Tax cuts are the most significant individual piece of the Recovery Act, giving 95 percent of working Americans one of the largest tax cuts in history,” said Congresswoman Lee. “As you file your 2009 income taxes, you need to know that you may qualify for a series of other generous tax cuts. You could save money for attending college, making energy-saving home improvements, purchasing a home for the first time, or buying a new car.
“I encourage all the residents in my Congressional District to take advantage of these and other tax cuts when filing your 2009 taxes. And if you missed out on any of these tax cuts, there is still time to amend your 2009 return to ensure that you will get the full benefits of the Recovery Act.”
Taxpayers in the Ninth Congressional District can claim a variety of benefits on their 2009 tax returns, including:
· The Making Work Pay tax credit – Ninety-five percent of working families are already receiving the Recovery Act’s Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks – and will continue to see these benefits in 2010. In the Ninth Congressional District, 223,000 families are benefiting from the Making Work Pay tax credit.
· Tax credits for college expenses – Families and students are eligible for up to $2,500 in tax savings under the American Opportunity Credit as well as enhanced benefits under 529 college savings plans, which helps families and students pay for college expenses. More than four million additional students will be able to attend college thanks to this tax credit.
· The First Time Homebuyers tax credit – First-time homebuyers can receive a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit. In the state of California, 199,092 households have already taken advantage of the First Time Homebuyers tax credit, for a total of about $1.4 billion in credits claimed.
· Tax credits for energy efficient renovations – Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.
· The vehicle sales tax deduction – Taxpayers can deduct the state and local sales taxes they paid for new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009 under the vehicle sales tax deduction.
· Expanded family tax credits – Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.
· Tax-free unemployment benefits – Thanks to the Recovery Act, individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings.
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