ATLANTA -- Time is running out to get your hands of some the stimulus money. Many programs are scheduled to go away at the end of the year.
One of the biggest opportunities for folks that is going away is the first-time home-buyer credit of up to $8,000. If you want to take advantage of that, you'd better put an offer on a house soon. In order to claim that credit, you'll have to close on your new home no later than November 30, 2009.
Home-buyers must meet several requirements in order to claim a tax credit that could be as high as $8,000. First-time home-buyers must complete the purchase of the home between January 1 and November 30, 2009. The homeowner must live in the home for at least three years, or be required to pay back all or part of the $8,000 credit.
The amount of the credit is reduced for people whose income is above $75,000 ($150,000 for married couples).
"Essentially, once you've gone through that, you basically have a choice. You can either put it on your 2009 tax return or you can go ahead and amend your 2008 tax return. So really, it's pretty straight forward, as long as you've met the conditions," said Lee Peterson, a tax attorney at the Reznick Group.
Georgians may also be able to add an $1,800 state tax credit if they purchased the home by November 30, 2009, and the house was on sale before May 11, 2009, in default before March 1, 2009, or held by a bank or mortgage company in foreclosure. "It may help folks decide which house to buy if they really want to claim that additional $1,800 state homebuyer credit, in addtion to the federal $8,000 credit," Peterson said.
Now may also be a good time to buy a new car.
If you purchase a new car by December 31, 2009, you may be eligible to write off state, local and excise taxes on your federal tax return.
"You get an extra deduction on your tax return that will help you recover some of the cost of the car that you purchased," Peterson said.
The benefit allows new car buyers to deduct the state, local and excise taxes on the first $49,500 of the car's cost. The car must be purchased between February 17, 2009 and December 31, 2009. The benefit only applies to new cars, light trucks, motor homes and motorcycles.
To be eligible for the benefit, an individual's income must be less than $135,000 ($26,000 for married couples).
Two other stimulus benefits for the unemployed are scheduled to end at the end of the year.
A stimulus subsidy of COBRA health insurance benefits will come to an end December 31, 2009. As part of that stimulus benefit, people who became unemployed between September 1, 2008 and December 31, 2009 are eligible to have up to nine months of their COBRA health insurance subsidized. Individuals are required to pay 35 percent of the premium and the federal government will pay the remaining 65 percent for up to nine months.
Tax breaks on unemployment benefits will also come to an end December 31, 2009. The law allows people to avoid paying taxes on up to $2,400 in unemployment benefits in 2009. The federal government also gave individuals an additional $25 per week in unemployment benefits.
