Obama Stimulus Plan: State Results and IRS Implications You Might Not Know

First $2,400 of Unemployment Benefits in 2009 is Now Tax Free

The American Recovery and Reinvestment Act of 2009 (ARRA) passed by Congress and signed into law by President Barack Obama has impacted every American state and chances are has impacted you personally. As promised, the Obama Administration has compiled state-by-state results of how the ARRA stimulus plan benefits have been used. The Organizing for America Foundation for Change web site provides information about how each state used the Obama ARRA stimulus plan money to save or create jobs, provide health care for uninsured children, help students in college, and put more money in worker's paychecks.

Every state in America has access to Obama ARRA stimulus plan municipal bonds to build new schools, improve transportation and invest in energy through the Build America Bond program. In addition, through the Obama stimulus plan, states can increase the amount and length of unemployment compensation benefits. Billions of ARRA stimulus plan dollars are now being released to 12 states to clean up or decommission Department of Energy nuclear sites, creating about 13,000 new jobs and saving hundreds more jobs in each state. Check out the Department of Energy Recovery Act Clearinghouse for more information about new Obama ARRA stimulus plan projects in your state that might help you find a job.

Millions of Americans have benefited from the Making Work Pay Tax Credit that provided for less federal tax withholding in paychecks. Thousands of Americans who lost their jobs can afford to continue health care coverage by the 65% reduction in COBRA premiums offered in the Obama stimulus plan. Now, the first $2,400 of unemployment compensation in 2009 is tax free. Over a million college students are able to stay in college through the American Opportunity Tax Credit.

What You Might Not Know About the Obama ARRA Stimulus Plan and the IRS

ARRA Health Insurance Premiums

More people will qualify for a larger health insurance premium tax credit under the Obama stimulus plan. The tax credit will increase from 65% to 80% for qualified individuals. You may qualify for a 65% reduction in COBRA premiums if you have lost your job.