Tax Day Edition
Today, on tax day, Marylanders are benefiting from 25 different tax cuts that were included in the American Recovery and Reinvestment Act – part of the more than $800 billion in tax cuts that this Congress passed since last year to reduce federal tax liability for working families and small business owners. The Recovery Act cut taxes for 95 percent of working families and provided significant relief to small businesses that were hit hard by the recession.
When President Obama took office, he inherited an economy in freefall. Through targeted tax cuts and by investing in our nation’s critical infrastructure, the Recovery Act has stabilized the economy. I am committed to doing whatever it takes to get the economy working again for regular Americans.
Below is a specific list of tax cuts that have benefited working Americans and helped spur the economy:
- 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 third district, 261,000 families are benefiting from the Making Work Pay tax credit.
- Social Security Rebate for Seniors – the Recovery Act authorized a one-time payment of $250 to nearly 55 million Social Security and Supplemental Security Income beneficiaries nationwide. Most recipients received this payment by May 2009.
- Tax credits for college expenses – In Maryland, 143,000 families in 2007 benefitted from federal tax credits for college expenses. In 2009 and 2010, the Recovery Act will allow families in Maryland with children in college to claim an additional $700 in federal college tax credit (up to $2,500).
- The First Time Homebuyers tax credit – First time homebuyers can get a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit. In Maryland, 28,616 households have already taken advantage of the First Time Homebuyers tax credit.
- 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.
Congressman John P. Sarbanes
Maryland's Third Congressional District