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Washington, Apr 15 - Today, on the deadline to file federal income taxes, Congressman Bill Foster (IL-14) highlighted a Citizens for Tax Justice report that found that because of the votes he took, 98 percent of families and individuals in Illinois received a tax cut in 2009.

“Many people don’t realize that the Stimulus plan alone contained $288 billion in tax cuts and benefits to families and businesses across the country,” said Foster.   “As an advocate of tax cuts for small businesses and the middle class, I was pleased to see that the Citizens for Tax Justice report found that 98 percent of working families in Illinois received a tax cut from the Stimulus, and that the average savings for Illinoisans was $1,209.”

The report also noted that no legislation that was passed into law increased taxes for 2009.  To read the full report, please visit http://www.ctj.org/obamastaxcuts/il.pdf .  

Aside from supporting the historic tax cuts in the Stimulus, Foster voted for additional tax cuts.  The HIRE Act, a bipartisan piece of legislation that is now law, strengthened small businesses with tax credits and accelerated write-offs so these businesses can expand and create new jobs.  The Worker, Homeownership & Business Assistance Act extends the first time homebuyer tax credit for purchases through April 30 and expands it to more families; it enhances small business tax relief, allowing them to carry back net operating losses from 2009; and it allows businesses to use net operating losses from 2008 or 2009 to offset profits from five previous years, up from two years.  Finally, the health insurance reform legislation contains the largest middle-class tax cut for health care in history, providing 40 million middle class families with incomes up to $88,000 for a family of four with tax credits to help pay for coverage.  The health insurance reform also provides $40 billion in tax credits for 4 million small businesses to help them offer coverage to their employees if they choose.

Taxpayers in Illinois can claim a variety of benefits on their 2009 tax return, including:

•   The Making Work Pay tax credit – Ninety-five percent of working families are already receiving the Recovery Act’s Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks – and will continue to see these benefits in 2010. In the 14th District of Illinois, 284,000 families are benefiting from the Making Work Pay tax credit.

•   The First Time Homebuyers tax credit – First time homebuyers can get a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit. In Illinois, 61,920 households have already taken advantage of the First Time Homebuyers tax credit. Non first time homebuyers who bought a home in 2009 can get a credit of up to $6,500.

•   Tax credits for college expenses – Families and students are eligible for up to $2,500 in tax savings under the American Opportunity Credit as well as enhanced benefits under 529 college savings plans, which helps families and students pay for college expenses. More than four million additional students will be able to attend college thanks to this tax credit.

•   Tax credits for energy efficient renovations – Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.

•   The vehicle sales tax deduction – Taxpayers can deduct the state and local sales taxes they paid for new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009 under the vehicle sales tax deduction.

•   Expanded family tax credits – Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.

•   Tax-free unemployment benefits – Thanks to the Stimulus, individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings.