Economic Stimulus

Community Teamwork, Inc.
167 Dutton St.
Lowell, MA 01852
(978) 459-0551

Economic Stimulus....How can it help you?
Community Action Program Legal Services (CAPLAW), provides publications on a wide variety of legal and management topics. The following is a summary of how the American Recovery and Reinvestment Act of 2009 (also know as the Economic Stimulus Act) impacts individuals served by agencies like Community Teamwork.

Food Assistance:

Supplemental Nutrition Assistance Program (SNAP) Formerly called Food Stamps: At a minimum, each household will receive an increase in benefits of 13.6%. For example, a family of four (4) could increase their benefits by $80 up from $588 to $668.

Seniors and Disabled:

Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Benefits: The ARRA provides a one-time payment of $250 to retirees, disabled individuals and Social Security Income (SSI) recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from U.S. Dept. of Veterans Affairs.

Working and Unemployed Individuals:

Making Work Pay Tax Credit: Working individuals may receive a refundable tax credit of up to $400 and married taxpayers filing jointly may receive up to $800. This tax credit will phase out for taxpayers with adjusted gross income in excess of $75,000 or $150,000 for married couples filing jointly. For people who receive a paycheck and are subject to withholdings, the credit wil typically be handled by their employers though automated witholding changes which may result in an increase in take-home pay.
Extenstion of Emergency Unemployment Compensation and Eligibility for Extended Benefits: The ARRA extends the period during which an unemployed individual may be eligible for unemployment compensation. Unemployed individuals typically receive 26 weeks in unemployment benefits, however once these expire, unemployed individuals may be eligible for an additional 33 weeks of benefits. More information is available from the U.S. Dept. of Labor.
Temporary Suspension of Taxation of Unemployment Benefits: Currently, all federal unemployment benefits are subject to taxation. The ARRA will temporarily suspend income taxes on the first $2,400 of unemployment benefits per recipient. Benefits over $2,400 will be subject to federal tax.
Increase in Unemployment Compensation Benefits: The ARRA automatically increases unemployment checks by an additional $25 through 2009.
Premium Assistance for COBRA Continuation Coverage for Individuals and their Families: The ARRA provides a 65% subsidy for COBRA continuation premiums for up to 9 months for workers who have been involuntarily terminated and their families in order to help people maintain health insurance coverage. More information is available from the U.S. Dept. of Labor

Tax Credits:

Child Tax Credit (CTC): This is a federal tax credit worth up to $1,000 per child to help offset the costs of raising children. The ARRA will enable families with earned income of $3,000 or more (down from $8,500) to receive a tax credit of 15% per dollar earned up to a maximum of $1,000 for each child in the family. For more information on the CTC, visit the Internal Revenue.
Earned Income Tax Credit (EITC): The Earned Income Tax Credit (EITC) is a refundable tax credit for low-income working individuals and families. Under the ARRA, the EITC will be temporarily increased from 40% to 45% for working families with three or more children for the first $12,570 of earned income. For more information, visit the Internal Revenue Service.

Aid to College/Post-Secondary Students:

Federal Pell Grants: The Federal Pell Grants are not loans and do not have to be repaid. College students qualifying for Pell Grants will receive an increase of $490 for a total of $5,350 in assistance in 2009-2010 and an increase of $690 for a total of $5,550 during 2010-2011.
American Opportunity Tax Credit: The ARRA increases the financial assistance for those seeking a college education. Eligible families may claim a tax credit up to $2,500 for the cost of tuition and related expenses paid during the 2009 & 2010 tax years. For more information on any of these tax credits, visit CAPLAW at http://www.caplaw.org/StimulusPackageLegalNews.html