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American Recovery and Reinvestment Act (ARRA)
Many Americans may have heard of the American Recovery and Reinvestment Act, but not many may know exactly what the American Recovery and Reinvestment Act was, or even when it was passed. They may also not know if the American Recovery and Reinvestment Act applies to them or not. Below are questions regarding American Recovery and Reinvestment Act that have been answered by the Experts.
What is the American Recovery and Reinvestment Act?
Most Americans would know the American Recovery and Reinvestment Act of 2009 as the Stimulus Act, that was enacted by Congress in the February of 2009 and then President Obama signed the act into
on February 17th of 2009. The act was brought about by the recession of the late-2000s, and created with the objective of saving and creating jobs in an immediate fashion. Other objectives that were considered when putting the American Recovery and Reinvestment Act were provisions for
for programs that had seen a major impact from the recession; also to make investments in the fields of education, infrastructure, green
, and health. The American Recovery and Reinvestment Act was estimated to cost $787 billion but was later revised to reach a total of $831 billion. Some direct spending from the American Recovery and Reinvestment Act was on
, social welfare provisions, and an expansion of
benefits for the unemployed.
Were tax breaks for parents of college students included in the American Recovery and Reinvestment Act?
When the American Recovery and Reinvestment Act was made into law it gave parents of college students and college students themselves the ability to qualify for a
credit, known as the American Opportunity Credit which would help to pay for the expense of college. The American Recovery and Reinvestment Act took the Hope Credit and built upon it, making a wider range of
eligible, those included in the wider range are those who do not owe taxes and those with higher incomes. In addition course materials that are required for college courses were added to the list of expenses that qualify, as well as increasing the years qualifying for credits from two years of post-secondary to four years.
Were energy efficient appliances and renovations to homes included in the American Recovery and Reinvestment Act?
In many cases there were 6 different tax credits that were related to energy that were either expanded or created by the American Recovery and Reinvestment Act. Here are those 6 credits with a brief explanation of each. Residential Energy Efficient Property Credit helps those taxpayers who have met the qualifications for residential
energy equipment such as wind turbines that can be installed in or connected to the taxpayer’s home. This credit will be in effect through 2016 and is 30% of the cost of the qualified property. Under the American Recovery and Reinvestment Act, a portion of the annual maximum dollar limits that had been imposed previously were removed.
Residential Energy Property Credit is the tax credit for those homeowners who have made improvements that are energy efficient to their homes. This credit has a maximum amount $1500 for the improvements that are energy efficient that the taxpayer made to their home.
The American Recovery and Reinvestment Act, known to most people as the Stimulus Act were passed in February of 2009, to help stimulate the economy. The American Recovery and Reinvestment Act allowed for college students or their parents to be able to get a tax credit for required course materials and to use the tax credit for four years of post-secondary school instead of just two years. If any individual has questions regarding the American Recovery and Reinvestment Act, they are able to ask an Expert.
Recent ARRA Questions
I have a client who is going to install solar pannel in their
I have a client who is going to install solar pannel in their home in 2011. What is the Federal tax credit they are entitled to..the net cost will be $15k after they get the rebate from the electric company...we are in Florida Thanks
Hello Rubin, I have read your response the the NOL carryback
Hello Rubin, I have read your response the the NOL carryback written about 1 year ago (to the day almost). It was very informative. Again I have an NOL for Individuals question. I have also read the 536 publication for 2008 and STILL I am gray as what to do with hopes that you can make understanding black and white.
I will try and write this in two sections, Section I - Strategy and Section II practice/implementation
--------- Strategy I --------
First is it the A) the AGI that needs to show a loss, or B) the business income (schedule C stuff)? If it is "A" then I am interested in carry back the loss to 2004, if it is "B" (which is what I think), then I think I am interested in using 2008 and carrying back to 2006 return. Q1) What is the deadline for each, or the options I am eligible for since today is March of 2010? I am thinking the answer is 2008 carrybacked to 2006 since AGI is what starts the basis for the tax bill prior to deductions.
---------Section II -----------------
Assuming it's 2008 carryback to 2006, Is it form 1045 or 1040x? I think the only material difference between the two is merely the deadline and administrative effort (1045 one shot vs. 1040X year by year.)
Q2) Must I carry back two years and start at 2006?, or can I carry back to only 2007? My preference is 2007 NOT 2006 since it had the higher taxable income. I do not see in the publication where I MUST go back two years and start forward. Only a reference to what occurs when the loss is not "fully absorbed" in the year (spills over the next).
As an avid turbo tax user for years, I was disappointed that TT does not walk one though this and I must now "get out the old pen and paper" to even start. Q3) Can this be "worked-around" in TT to do the amendment of 2006? And how do we do that?
I have uploaded the TT files, 2006, 2007 and 2008 (loss year) to help you understand the pictures. In summary
2006 AGI 50ish, 2007 70ish, 2008 (big neg).
Q-bonus)How the heck do I do this ALL??
You may ask, why am I bringing this up now, well since I knew 2008 was a horrible year, I put it off as I knew I wouldn't owe, but now I'm learning I can get some credit for previous years. I'll do 2009 on time. LOL
P.S. My father used to work at Cal Tech, now retired from JPL.
The old TT files can be located here.
Password XXXXX: School attended no spaces one word. 7 letters
can i deduct depreciation for an rv used fulltime for business
can i deduct depreciation for an rv used fulltime for business? Is it 100% write off?
is there any additional depreciation this year? Can I write it all off the first year?
can i take it over several years?
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