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Inside the 2009 Stimulus Package

Written by a TurboTax Expert • Reviewed by a TurboTax CPAUpdated for Tax Year 2009 • October 18, 2023 1:22 PM
OVERVIEW

Note: The content of this article applies only to tax years prior to 2011. It is included here for reference only. See a visual breakdown of what the 2009 American Recovery and Reinvestment Act—a new economic stimulus bill that gives tax breaks to 95 percent of Americans—could look like for your family.

In 2008, President Obama signed the American Recovery and Reinvestment Act—an economic stimulus bill that gave tax breaks to 95 percent of Americans. The economic stimulus plan was meant to provide a financial boost to everyone from the unemployed and middle income families with children to first-time homebuyers. For some  American families, that could mean over $13,000 in savings. Here is what the stimulus could look like for some families.

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Examples of situations included in a simple Form 1040 return (assuming no added tax complexity):

  • W-2 income
  • Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B
  • IRS standard deduction
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Student loan interest deduction
  • Taxable qualified retirement plan distributions

Examples of situations not included in a simple Form 1040 return:

  • Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers)
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  • Income from rental property or property sales
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