Everyday Cheapskate

So you think the new administration's stimulus plan and economic initiatives have nothing in them for you? You might be wrong, says Kelli B. Grant, who is the senior consumer reporter for SmartMoney, in a recent article for Good Housekeeping magazine. Here are a few of the ways you might benefit:

—Buy a home. If you're a first-time buyer, check out the tax credit available through November, which is worth 10 percent of the purchase price or up to $8,000. Conditions you should know about: You cannot have owned a home in the past three years, and your combined annual income as a married couple cannot exceed $170,000. If you are single, your annual income can't exceed $95,000. If you already have made a qualifying purchase, you can amend your 2008 tax return to get the cash now, without waiting for your 2009 filing.

—Refinance a mortgage. The administration's new foreclosure-prevention plan allows homeowners who are mortgaged for as much as 105 percent of their homes' values to refinance and lower their payments. If you think you might qualify, call your lender and talk to customer service. Qualifying loans will be owned or guaranteed by Fannie Mae or Freddie Mac. Just keep in mind that to qualify, your current payments must be up-to-date.

—Buy a new car. The stimulus plan will get you a sales tax deduction when you buy a new car, as long as the price is less than $49,500, you bought it on or after Feb. 17, 2009, and your gross income is less than $135,000 ($260,000 for a married couple).

—Get green.

Installing energy-efficient windows in 2009 or 2010 may qualify you for a tax deduction of up to 30 percent of the purchase price. Ditto for solar- and wind-energy improvements. You can visit http://www.EnergyStar.gov to see which projects and products qualify for the credit. With any luck, you've made improvements already that qualify. That means all that remains is picking up the dough.

—Pay for college. The Hope Scholarship Credit was replaced with the beefier American Opportunity Tax Credit. Claim this new stimulus item and you should get back 100 percent of the first $2,000 plus 25 percent of the next $2,000 spent on tuition, books, fees and other costs for a college, trade-school or university education, provided you attend school on at least a half-time basis. To learn more about this credit plus other opportunities, visit http://www.ed.gov.

—Modify a mortgage. Families struggling with mortgage payments may qualify for loan modifications if their payments (including taxes and homeowners insurance) are greater than 31 percent of their monthly pretax incomes. The government anticipates that some households will save more than $400 per month. Visit http://www.MakingHomeAffordable.gov or call 888-995-4673 to see whether you qualify.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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