It is said that the Economic Stimulus Act has something for everyone.
But do you know how it affects you as a taxpaying individual? Here are the things you should know: * More tax credit You can get an additional tax credit of your 6.
2% of your income up to $400 for individuals.
Married people, on the other hand, can get up to $800 if both husband and wife meet the rules.
However, it diminishes for people who earn more than $75,000 in modified adjusted gross income (which is adjusted gross income with some minor modifications).
This additional credit is completely diminished for people who earn $95,000.
The phase out for married people is $150,000 to $190,000.
* Scholarship Credit If you are in college or you kids are in college, you can get 100 percent of tuition and qualified expenses up to $2,000, and 25% of tuition and qualified expenses as tax credit every year for each student.
Tax credits are dollar-for-dollar reduction in the taxes you have to pay.
But this phases out for individuals who earn from $80,000 to $90,000 in modified adjusted gross income.
Married people who file jointly have double the phase out limits.
* First time home buyers If you are buying a home for the first time, you can get a tax credit worth 10% of the buying price, up to $8,000.
If you meet some holding period rules, like living in that home for at least three years after purchase, you don't have to pay it back.
To qualify as a first time homebuyer, you must not have owned a principal residence within the last 36 months of buying your new home.
* A one-time tax credit of $250 for taxpayers who are eligible to receive social security or VA pension or railroad retirement pensions.