Stimulus Benefits for Consumers

1. Deduct the taxes on a new vehicle -  The federal government will let you deduct the cost of state and local sales (or excise) taxes if you buy a new vehicle.  You are still probably better off buying a slightly used vehicle, but if you do buy new this can save you some money.
2. Get $8000 for buying a house - If you haven’t owned a house in the last 3 years the government will give you a credit up to $8,000.  If the house costs less than $80,000 you can get back 10%.  It also applies to homes built in 2009, but you have to move in before the end of the year. This isn’t a deduction that lowers your taxable income, it lowers the amount you pay in taxes by $8,000.  It is also refundable–if your tax bill is less than $8,000 you will get the remainder back in cash.
3. College tax credit – You can get a credit for up to $2,500 for paying college expenses.  This only helps you if you owe something in taxes.  The government won’t send you a check like they will with the $8,000 for buying a house.

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3. Are US Income Taxes Illegal