WORKER, RETIREE, AND EMPLOYER RECOVERY ACT OF 2008
Approved by Congress on 12/11/2008

• Suspends required minimum distributions (RMDs) from 401(k) plans, IRAs and similar retirement accounts for 2009.
• Provides clarification that all retirement plans must permit rollovers of a decedent’s interest to non-spouse beneficiaries.

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 (Date enacted:10/3/08)

• Includes the much anticipated alternative minimum tax (AMT) patch which reduces the exposure of individual tax payers to the dreaded AMT for one more year.
  
• Allows individuals to use certain personal credits to reduce AMT.
• 50% of long term minimum tax credits to be refunded over 2 years rather than 20% over 5 years.
• Extends a host of popular but temporary tax breaks such as:
• College Tuition Deduction
• Optional Sales Tax Deduction
• Educator Expense Deduction
• Tax-free Principal Residence Mortgage Debt Relief (Form 1099-C)
• Tax-free Distributions from IRAs for Charitable Purposes

 

THE HOUSING ASSISTANCE TAX ACT OF 2008
Date Enacted: 7/30/08

• Gives qualified first-time homebuyers (home purchases made after 4/8/08 and before 7/1/09) a temporary refundable tax credit.  However, the credit operates like an interest free loan, because it must be repaid over a 15 year period.   The credit is 10% of the purchase price with a maximum available credit of $7,500 and is reduced or eliminated for higher-income taxpayers.
• Non-itemizers now have a limited deduction for real estate taxes. The amount of their standard deduction is increased by the lesser of the amount of the real estate taxes paid or $500 ($1,000 for a married couple filing jointly).
• Excludes tax-exempt interest on certain housing bonds from being a preference item for AMT purposes.

 

HEROES EARNINGS ASSISTANCE AND RELIEF TAX BILL OF 2008
(Date Enacted:5/27/08)

• Previous legislation temporarily allowing military personnel to treat tax-free combat as earned income solely for purposes of maximizing their Earned Income Credit has been made permanent.
• Differential payments to reservists by their employer will be treated as compensation for purposes of the employer’s retirement plan.
• Reservists called to active duty are allowed penalty-free access to unused amounts from flexible spending arrangements (FSAs) sponsored by their employer.

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THE FOOD, CONSERVATION AND ENERGY ACT OF 2008
(Date Enacted: 5/27/08)

• Excludes from self-employment income any Conservation Reserve Program (CRP) payments made to retired or disabled farmers.
• New deductions and credits include a deduction for endangered species recovery expenditures and a credit for securing pesticides and fertilizers.

 

ECONOMIC STIMULUS ACT OF 2008 (Date Enacted: 2/13/2008)



• Qualifying taxpayers can take advantage of 50% bonus depreciation on new equipment.
• Some taxpayers who missed out on the advance rebates this year due  to their income being too low or too high, or had a child born or adopted in 2008, have a “second chance” to qualify with their 2008 returns.
• Congress generously enhanced the Section 179, immediate depreciation deduction, to $250,000 – its highest level ever.

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