Welcome to Money Tips!
A publication of Johnson Financial Services

We have urgent news to share with you….updates about the Economic Stimulus Bill. We have researched various sources and tried to summarize as simplistically as possible. As always, do not hesitate to contact us with any specific questions regarding your personal situation and how all of this affects YOU.

It’s time….TAX TIME that is. If you need a checklist to help you gather the necessary information for your taxes, please visit our website at www.JFSMONEY.com/valuableinfo and download or print the list. As always, please feel free to contact us with any questions and to schedule your appointment / conference call.

Summary of the Economic Stimulus Bill
I know you have been on the edge of your seats daily trying to decipher what the ECONOMIC STIMULUS BILL really is and what it means to you. Here is a summary of the tax breaks and offerings for individuals.

• Income Tax for 2009 and 2010: There is a tax credit of up to $400 for individuals and $800 for married couples filing jointly.
• You calculate the credit; subtract the other federal taxes you owe by taking 6.2% of your earned income. Your eligibility for this credit phases out if you have an adjusted gross income over $75,000 single (or $150,000 for couples).
• Employers will adjust tax withholdings on paychecks so that this credit is disbursed to you over the course of the year. Self-employed can adjust their quarterly tax filings for the credit.
• Unemployment received in 2009 will not have any federal taxes imposed on the first $2,400 in benefits received.
• Health insurance when you are laid off or fired will now be subsidized by the federal government for up to 65% of the premium for up to 9 months.
• To qualify you need to have been forced out of your job between Sept 1, 2008 and December 31, 2009.
• Your income cannot be more than $125,000 single ($250,000 for couples)
• Your former employer will collect the money from the government.
• Social Security recipients will receive a $250 refundable tax credit. The money should arrive within 120 days of the bill’s signing.
• Pell Grants will increase by $500 to $5,350 in 2009 and $5,550 in 2010. The grants are generally for low-income students
• 1st Time Homebuyers: Previously Congress passed a credit for first time homebuyers that had to be repaid over 15 years. NOW, first time homebuyers are eligible for a refundable tax credit equal to 10% of the purchase price up to $8,000 (a little more than the previous credit) as long as the purchase is made after January 1, 2009 and before December 31, 2009. Do note the credit phases out for individuals with income over $75,000 ($150,000 for married couples).
• Commuting to work by public transportation – your employer may allow you to set aside pretax money from your paycheck for the bus, train or parking. Currently you can set aside $120 each month in 2009 and 2010 you set aside up to $230 each month.
• 529 Plans – When you withdraw money from a college savings plan you can use it for tuition, room board, books and other college expenses. In 2009 and 2010 you can also use it for computers and technology which could include educational software and internet service for students at home.
• Alternative Minimum Tax – Congress tries to keep millions of people from paying this by creating temporary fixes. This year – if you didn’t pay the AMT last year, then you will not have to this year.

NEW Service offered by JFS
We are offering an additional service this year – Strategic Cash Flow Analysis. This service provides you help in determining your financial priorities and goals. We will show you how to develop and maintain a plan to achieve your goals. If you are interested in this new service for your family’s financial security, please contact us for more information.

New Mileage Rates for the New Year
Effective January 1, 2009, mileage rates will increase.

• Business mileage will be $0.55;
• Medical and Moving mileage will be $0.24;
• Charitable mileage remains at $0.14.

Check out our contributions to the blog community
Don’t forget to check out the following websites for Lesley’s blogs:

• www.workingmother.com;
• www.cwahm.com ;
• www.new.catholicmom.com and
• www.businessmom.net.

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Johnson Financial Services
phone: 816.289.0476
email: johnsonfinancialsvc.hotmail.com

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