Murphy on Tax Benefits

from the inbox:

On April 13, 2010, Rep. Patrick Murphy joined local residents to discuss the tax benefits people can claim for 2009 thanks to the Recovery Act and other efforts. Because of these efforts, American taxpayers’ average refunds are up nearly 10% this year. In Pennsylvania alone, 99% of working families and individuals benefitted from tax cuts signed into law this year. On average, this translated into an additional $1,220 in tax breaks for families and individuals in the state.

“I will continue to champion much-needed tax relief for middle-class families, so folks can use their hard-earned money to buy a home, start a family, or put their kids through college,” said Congressman Patrick Murphy.

“Congressman Murphy has been a strong advocate for middle-class families like us, supporting tax cuts that put more money back in our pockets and helped us send our daughter to college,” said Sue Kiernan of Levittown, PA.

Congressman Murphy has consistently fought to lower taxes for the middle-class to help families weather the economic downturn and to create jobs. The Making Work Pay Tax Credit, part of the Recovery Act, provided middle-class families and families with tax breaks of $800 and $400 respectively, in 2009 and 2010. The credit helped folks like Bill and Sue Kiernan, small business owners from Levittown, weather the economic downturn.

The Kiernans, and thousands of other PA families, also got help putting their kids through college thanks to the American Opportunity Tax Credit, also a part of the Recovery Act. More families and students are eligible for up to $2,500 in savings to help pay for college, and taxpayers can claim the credit for four years instead of two.

The Congressman also championed the First Time Homebuyers’ Tax Credit, providing a credit of up to $8,000 to help those purchasing a home. The tax credit helped anyone who bought their first home before April 30, 2010 get a credit of up to $8,000 to offset the cost, helping hundreds of thousands of folks, like Emma Adeho from Morrisville, purchase their first home. Current homeowners and families with higher incomes were eligible for a reduced version of the credit - up to $6,500. The credit has also generated over 300,000 construction jobs nationwide.

An interactive, online calculator at www.whitehouse.gov/recovery also allows people to see what tax credits they will benefit from under the Recovery Act.