Economic Stimulus 2010: More Help for Your Finances

By Miranda Marquit (Staff Writer), on May 7, 2010

Most people consider the economic stimulus as something that happened last year. However, some of the stimulus measures passed following the financial crisis of 2008, and during the recession that followed, are still in effect through the end of this year. If you are still looking for a little stimulus for your personal economy, you can still get it in 2010.

Here are some of the ways the economic stimulus can still benefit you:

Making Work Pay

Many people may not have noticed this tax credit, since it has been lurking in your paycheck. The IRS adjusted employer withholding tables in order to provide a regular increase in your take home pay. This increase was seen last year, in 2009, and is available this year, in 2010.

If you are self-employed, or if your employer hasn’t adjusted withholdings, you will be able to take this credit on your 2010 tax return. You can get up to $400 if single, and $800 if married. Phase out starts at $75,000 for singles and $150,000 for couples.

This is the closest thing to an actual stimulus check in 2010.

Energy Efficiency Tax Credit

Back in 2007, tax credits were passed to encourage energy efficient home improvements. The law was scheduled to expire, but the economic stimulus bill passed last year extended and expanded the credits through the end of 2010.

If you are planning on making green home improvements, this is a good time to do it. You can get a tax credit of 30% for making small improvements, up to $1,500. This includes replacing windows, adding insulation, changing your water heater, adding a high efficiency cooling system and even applying duct seals. For larger projects, like solar panels, wind turbines and geothermal systems, you can take a credit for 30% of the cost — with no cap on the amount.

It is also worth noting that many states and local governments are offering their own energy efficiency grants, tax credits and special loan programs that can save you even more on top of what is being offered by the federal government.

Home Buyer Tax Credit

If you bought a home earlier this year, getting under contract by April 30, you might have a tax credit coming. The home buyer tax credit offers two options. For first time home buyers, there is a tax credit of up to $8,000, and for those who are “trading up” there is the possibility for up to $6,500. You can claim this on your 2010 return.

If you filed for a tax extension for your 2009 taxes, or don’t mind filing an amended return, you can get your money a little bit quicker by claiming it on your 2009 tax return, instead of waiting until 2011, when you file your 2010 return.

Create A Personal Economic Stimulus

You don’t have to wait for the government to offer you money in order to stimulate your finances. You can do it yourself, with a little creativity and planning. Here are some things that you can do to stimulate your own personal economy:

• Consider cutting some expenses. Look at subscriptions, entertainment options and other spending, and see where you can cut back.
• Cultivate new income streams: Think of ways you can earn a little extra cash regularly. This can come from setting up a web site, to turning your hobby into something that can provide a side income. It can also include investments in securities that pay dividends or provide regular interest payments.
• Upgrade your skills: Consider going back to school, or earning a special certification that is prized in your field. This can help you increase your salary, or find a better paying job. You can actually receive a tax deduction for some of the expenses associated with a job hunt.

As the economy starts moving out of recession, it’s the perfect time to get your finances in order, and to take advantage of the stimulus opportunities available.

Recommended articles:

• File a Tax Extension Instead of an Amended Return
• Tax Tips for 2009 Tax Year
• End of the Year Tax Play: Sell Losing Investments
• How to Maximize Your Energy Efficiency Tax Credit Without Overspending
• What Counts As a Tax Deduction?
• How the First Time Home Buyer Credit Can Create Economic Growth
• Why The First Time Home Buyer Credit Is Terrible For The Economy

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Miranda is a journalistically trained freelance writer and professional blogger working from home. She is a contributor for Mainstreet.com, Personal Dividends and several other sites. You can also find her at The AllBusiness Personal Finance Corner.

All posts by Miranda Marquit (Staff Writer)

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