The stimulus will help us financially in several ways:
- $25 more per week in unemployment benefits for AS, probably starting in late March.
- $30 per month extra in NT's paycheck and $30 per month extra in my paycheck, beginning maybe in June.
- A $2500 tax credit instead of $1800 for NT's Hope credit, about $60 per month. We'll see this benefit in our tax refund for 2009, since I can't figure out a way to just decrease my withholding $60 per month. Also, I think I read that he'll be able to take Hope credit beyond just the first two years of college.
- First $2400 of AS's unemployment pay won't be taxed. Not sure how much this will pan out for us dollarwise, but it will make her refund bigger next year.
Edit: Here's the wording: "The new law also makes up to $2,400 of unemployment benefits tax-free. If you received jobless pay in 2008, however, the full amount is still taxable on your 2008 return. The new break applies only to benefits received in 2009."
SOURCE:
- AS unemployment benefits extended. She could basically stay on unemployment through the year if needed. I hope it doesn't come to that, but jobs in her desired field are virtually nonexistent right now, and she's thinking she might try to start or work for a sewing business in the meantime. She talked to unemployment and knows how to do this while still having benefits during slow times, so this may be a good fix to bide her time waiting for an ad job (or it could be a start in a whole new direction; who knows?)
We are probably going to spend AS's increased benefits on some kind of car-sharing or car-rental deal. The other parts of the stimulus I will put toward the emergency fund.
Have you figured out how the stimulus will affect your income? If not, Kiplinger's has some articles that lay it out very clearly and specifically.
February 24th, 2009 at 03:37 am 1235446675
But, it will make it so getting Cobra (at least for the first 9 months) is affordable.
I've had several people tell me the first $2400 of UI is not taxable, but haven't found anything that says that for sure yet.
February 24th, 2009 at 05:16 am 1235452586
February 24th, 2009 at 06:16 am 1235456168
February 24th, 2009 at 04:49 pm 1235494174
I wish there was a way to take a protest deduction on my taxes.
February 24th, 2009 at 05:12 pm 1235495563
Nathan: That both sucks and blows.
March 18th, 2009 at 03:11 pm 1237389068
I made the mistake last year of having 2 exemptions (new employer, and I'm pretty sure that's what they told me I **had** to use for my situation!). So I've gotten screwed into paying $650 to the feds and $150 to the state. Enough of that already! I found a form on the intranet to change my exemptions and I've reduced them to 0, like they've always been. Folks used to say this was a lousy savings account, but since banks are paying MAYBE 1% interest on savings, it's just not that big of a deal these days!