Stimulus act adds new tax benefits for troops

[unhappycamper]

Stimulus act adds new tax benefits for troops
By Erik Slavin, Stars and Stripes
Pacific edition, Monday, March 9, 2009

The American Reinvestment and Recovery Act of 2009, signed by President Barack Obama last month, includes new tax breaks that will benefit some servicemembers, financial professionals at bases in Japan said last week.

Along with the new deductions, there are several old deductions that benefit military members, especially if they itemize.

One of the biggest tax provisions in the Recovery Act economic stimulus plan allows anyone who purchases a home between Jan. 1 and Nov. 30 to take an $8,000 tax credit. The home has to be where you plan to live, said Jim McDaniel, an accredited financial counselor at the Yokota Air Base Airman and Family Readiness Center.

"However, it is more difficult to qualify for a home loan," said McDaniel, alluding to tightened credit standards at many banks across the United States. "But if you do qualify, there are a lot of opportunities in real estate."

Servicemembers and others with families also should get a boost from the Recovery Act’s expansion of the Child Tax Credit, according to a statement provided by H&R Block’s Yokosuka Naval Base office.


Rest of article at: http://www.stripes.com/article.asp?section=104&article=61200