Comptroller DiNapoli's Financial Commentary
What the Stimulus Plan Means for New Yorkers
By State Comptroller Thomas P. DiNapoli
All across the state, New Yorkers are hoping that President Obama’s federal stimulus package will help fix the crumbling economy and get New York back on the right track. The right choices can help our state use the stimulus plan as a stepping stone toward a better New York. Aside from the big picture, the stimulus plan will have an immediate, direct impact on a lot of New York wallets:
More money in your paycheck: You may see an increase in your paycheck soon. It is because of the reduced federal tax withholding rate for 2009. The tax credit is $400 for single workers who make $75,000 or less, and $800 for married workers who have a joint income of $150,000 or less. The credit phases out for higher income earners.
Extra Benefits for Retirees, Veterans, and the disabled: If you collect social security, supplemental Security Income, veteran’s disability or railroad retirement benefits you will receive a check for $250 this summer.
Alternative Minimum Tax relief: Tax payers can expect a $500 increase in the AMT income exemption for individuals, raising the income exemption level to $46,700 and $1,000 increase for couples, raising the income level to $70,950.
College Assistance: If you have a child in college you may be eligible to claim a tax credit of up to $2,500 in 2009 and 2010. This benefit begins to phase out for single taxpayers with incomes above $80,000 and married taxpayers with incomes above $160,000. Also, 529 college savings account funds can now be used to purchase computers for college students regardless of college requirements. Credits for college will increase to $2,500 for tuition and related expenses with the credit being phased out for couples making more than $160,000 ($80,000 for singles) for 2009 and 2010. Pell Grants will increase from the current $4,371 to $5,350 in the 2009-10 school year and $5,500 in 2010-11
A Tax Break on New Vehicles: If you purchase a new car, SUV, motorcycle or motor home and spend up to $49,500 you can deduct state and local sales taxes. This benefit begins to phase out at incomes of $125,000.
Home Buyers Incentive: First-time home buyers may receive a tax credit of up to $8,000 with no payback requirement. This offer exists now through November 2009.
Help for Individuals who have been laid-off: People who continue coverage under their former employer’s health-insurance plan will get a 65 percent subsidy for up to nine months. The first $2,400 in unemployment insurance benefits this year will be tax exempt.