Money Makes Dreams Come True

Free money? Why not? If you are like me and most other people, there never seems to be enough left at the end of the month. Believe it or not, there is money available if you know where to look and what to do.

The federal government recently started a new program called CARS. The idea is to encourage people to trade old vehicles for newer ones that are more fuel efficient. Generally, if you trade for a new vehicle that gets better gas mileage, you can get an extra $3500-$4500 credit from the government. It depends on the type of vehicle and the difference in fuel mileage. This will be in addition to the scrap value of your old car and other rebates, discounts or incentives that you get from the dealer.

There are some other rules about the age of your trade-in and other stuff. There are also special rules for work trucks, SUV’s, and other big vehicles. Check out the web site www.cars.gov to see if your old vehicle qualifies and learn more details. The new program is so popular now that they have already used up all of the money. But they are expected to approve more to keep it going for a while longer.

Another federal program offers millions of dollars each year to working people. It is called the Earned Income Tax Credit. Millions of American families who are eligible for the E.I.T.C. do not receive it, leaving billions dollars unclaimed. Basically this program will send you money each year that you qualify. All you have to do is fill out the right forms.

Who qualifies? You must be a U.S. citizen or a U.S. resident, and you must have earned income. What is earned income? Generally, it is income from your wages, salaries, tips, commissions, or even from self-employment. It some situations, it can also include disability payments or nontaxable combat pay. You can get a small amount even if you do not have children. If you have qualifying children living with you, the amount of this credit goes up a lot.

Filers both with and without qualifying children must have lived in the United States for more than half the year. But
a person on extended military duty is considered to have met this requirement. All filers (including children being claimed) must have a valid social security number. This includes social security cards printed with "Valid for work only with INS authorization" and "Valid for work only with DHS authorization."

For people without a qualifying child, there is an extra age requirement (25-64). There are also special rules for married people filing separately. Grandparents, aunts, uncles, and siblings can even claim a child as their qualifying child if they shared a home for more than six months out of the year. A qualifying child can be up to and including age 18 at the end of the tax year, up to and including age 23 if classified as a full-time student, or any age if classified as permanently and totally disabled.

If you have a question, talk to your accountant or send me an email and
I will do my best to help you . . .

One immediate benefit you should see will be a slightly lower amount of withholding on your paychecks. That means more money in your pocket.

If companies are staying current with the new guidelines, then the amount of your take-home check will go up a little bit as they hold back less for payroll taxes. It may only be a few dollars, but every little bit helps.

There have been a lot of changes in the past six months. I am sure that there will be a lot more in the months ahead. There are some signs that things are starting to get better.

Some people will benefit more than others, but hopefully we will all begin to see some light at the end the tunnel soon.