The American Recovery and Reinvestment Act of 2009

The Economic Stimulus Package

On February 13, Congress passed the Conference Report of the American Recovery and Reinvestment Act, H.R. 1, to save and create jobs, get our economy moving again, and transform it for long-term growth and stability. On February 17, President Obama signed the American Recovery and Reinvestment Act (ARRA) into law. Read the full bill here.

Creating Jobs, Supporting the States and Investing in Our Country’s Future 

The United States is facing its deepest economic crisis since the Great Depression, one that calls for swift, bold action. The goals of this legislation are to strengthen the economy now and invest in our country’s future.

The American Recovery and Reinvestment Act is a nationwide effort to create jobs, jumpstart growth and transform our economy to compete in the 21st century. The compromise package of $789 billion will create or save 3.5 million jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector. 

This legislation is also designed to help state and local governments with their budget shortfalls to prevent deep cuts in basic services such as health, education, and law enforcement; cut taxes for working families and invest in the long-term health of our economy. 

To accomplish these goals, The American Recovery and Reinvestment Act provides $311 billion in appropriations, including the following critical investments:

• Investments in Infrastructure and Science - $120 billion
• Investments in Health - $14.2 billion
• Investments in Education and Training - $105.9 billion
• Investments in Energy, including over $30 billion in infrastructure - $37.5 billion
• Helping Americans Hit Hardest by the Economic Crisis - $24.3 billion
• Law Enforcement, Oversight, Other Programs - $7.8 billion 

ARRA Lowers Health Care Costs and Ensures Broader Coverage: Affordable and quality health care is key to strong economic growth.  ARRA brings our health care system into the 21st century with information technology, which will save billions of dollars, and are taking key steps to ensure broader coverage in this recession.

• Modernizing Health Care System to Lower Costs and Save Lives
• Provides $19 billion to accelerate adoption of Health Information Technology (HIT) systems by doctors and hospitals, in order to modernize the health care system, save billions of dollars, reduce medical errors and improve quality.
• Strengthens Federal privacy and security law to protect personally identifiable health information from misuse and abuse.
• Creates hundreds of thousands of jobs – many in high-tech sectors – by promoting the adoption of HIT.
• CBO estimates this will reduce health costs for the federal government by $12 billion over 10 years.
• Protecting Health Care Coverage for Millions through Medicaid
• Protects health care coverage for millions of Americans during this recession, by providing an estimated $87 billion over the next two years in additional federal matching funds to help states maintain their Medicaid programs in the face of massive state budget shortfalls.
• Helps states avoid having families lose Medicaid coverage and scaling back the health care services provided during these difficult times.
• Providing Health Insurance for Unemployed Workers
• Currently, laid-off workers, under the COBRA program, can buy into their former employer’s health insurance.  But the premiums are often prohibitively expensive.  In order to help people maintain their health coverage, the bill provides a 65% subsidy for COBRA premiums for up to 9 months for workers affected by the recession.
• Investing in Prevention & Comparative Effectiveness Research
• Provides $1 billion for a new Prevention and Wellness Fund.  Studies have shown that investing in prevention can lower overall health care costs by billions of dollars. 
• Provides $1.1 billion for comparative effectiveness research, to evaluate the relative effectiveness of different health care services and treatment options.  This research will improve the quality of care.

High unemployment and rising costs have outpaced Americans’ paychecks.  ARRA will help workers train and find jobs, and help struggling families make ends meet. 

• Extending and Improving Unemployment Benefits
• Continues through December 2009 the extended unemployment benefits program (which provides up to 33 weeks of extended benefits) that is otherwise scheduled to begin to phase out at the end of March 2009 – thereby helping an additional 3.5 million jobless workers.
• Increases unemployment benefits for 20 million jobless workers by $25 per week, and encourages states to modernize their UI systems to keep up with the changing workforce with expanded coverage.
• Temporarily suspends the taxation of some unemployment benefits.
• Every dollar in unemployment benefits creates at least $1.63 in economic activity, according to chief economist Mark Zandi of Moody’s Economy.com.
• Increasing Food Stamp Benefits
• Provides $19.9 billion for food stamps, increasing food stamp benefits by over 13% to help offset rising food costs for more than 31 million Americans, half of whom are children.
• Every dollar of food stamps creates at least $1.73 in economic activity, according to chief economist Mark Zandi of Moody’s Economy.com.
• Increasing Other Food Assistance
• Provides other food assistance, including $100 million for Emergency Food and Shelter to help local community organizations provide food and shelter; $100 million for formula grants to states for elderly nutrition services including Meals on Wheels; and $150 million for the Emergency Food Assistance Program to purchase commodities for food banks to refill emptying shelves.
• Helping Workers Find Jobs
• Provides funding to help workers find jobs, including $3.95 billion for job training including formula grants for adult job training, dislocated worker job training, and youth services (including $1.2 billion to create up to one million summer jobs for youth); $500 million for Vocational Rehabilitation State Grants to help persons with disabilities prepare for gainful employment; $500 million to match unemployed individuals to job openings through state employment agencies; and $120 million to provide community service jobs to an additional 24,000 low-income older Americans.
• Expanding Housing Assistance
• Increases support for several critical housing programs, including providing $2 billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties and $1.5 billion for the Emergency Shelter Grant program to provide short-term rental assistance and other aid for families during the economic crisis.
• Providing Aid to Seniors, Disabled Veterans, and SSI Recipients
• Provides a payment of $250 to retirees, disabled individuals and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from the Department of Veterans Affairs. 
• Extending TAA
• Extends Trade Adjustment Assistance benefits for at least 160,000 new workers over the next two years who lose their jobs because of increased imports or factory shifts to any foreign countries.

Investments in Infrastructure and Science include:

Infrastructure Improvements

• $7.2 billion for Broadband to increase broadband access and usage in unserved and underserved areas of the Nation, which will better position the U.S. for economic growth, innovation, and job creation.
• $2.75 billion for the Department of Homeland Security to secure the homeland and promote economic activity, including $1 billion for airport baggage and checkpoint security, $430 million for construction of border points of entry, $210 million for construction of fire stations, $300 million for port, transit, and rail security, $280 million for border security technology and communication, and $240 million for the Coast Guard.
• $4.6 billion in funding for the Corps of Engineers.
• $1.2 billion for VA hospital and medical facility construction and improvements, long-term care facilities for veterans, and improvements at VA national cemeteries.
• $3.1 billion for repair, restoration and improvement of public facilities at on public and tribal lands.
• $4.2 billion for Facilities Sustainment, Restoration and Modernization to be used to invest in energy efficiency projects and to improve the repair and modernization of Department of Defense facilities to include Defense Health facilities.
• $2.33 billion for Department of Defense Facilities including quality of life and family-friendly military improvement projects such as family housing, hospitals, and child care centers.
• $2.25 billion through HOME and the Low Income Housing Tax Credit program to fill financing gaps caused by the credit freeze and get stalled housing development projects moving.
• $1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times.
• $1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought.

Transportation

• $27.5 billion is included for highway investments
• $8.4 billion for investments in public transportation.
• $1.5 billion for competitive grants to state and local governments for transportation investments.
• $1.3 billion for investments in our air transportation system.
• $9.3 billion for investments in rail transportation, including Amtrak, High Speed and Intercity Rail.

Public Housing

• $4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs -- especially those improving energy efficiency in aging buildings.
• $2 billion for full-year payments to owners receiving Section 8 project-based rental assistance.
• $2 billion for the redevelopment of abandoned and foreclosed homes.
• $1.5 billion for homeless prevention activities, which will be sent out to states, cities and local governments through the emergency shelter grant formula.
• $250 million is included for energy retrofitting and green investments in HUD-assisted housing projects.

Environmental Clean-Up/Clean Water

• $6 billion is directed towards environmental cleanup of former weapon production and energy research sites.
• $6 billion for local clean and drinking water infrastructure improvements.
• $1.2 billion for EPA’s nationwide environmental cleanup programs, including Superfund.
• $1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities in rural areas.

Science

• $1 billion total for NASA.
• $3 billion total for National Science Foundation (NSF).
• $2 billion total for Science at the Department of Energy including $400 million for the Advanced Research Projects Agency—Energy (ARPA-E).
• $830 million total for the National Oceanic and Atmospheric Association (NOAA).

Investments in Health include: 

• $19 billion, including $2 billion in discretionary funds and $17 billion for investments and incentives through Medicare and Medicaid to ensure widespread adoption and use of interoperable health information technology (IT). This provision will grow jobs in the information technology sector, and will jumpstart efforts to increase the use of health IT in doctors’ offices, hospitals and other medical facilities. This will reduce health care costs and improve the quality of health care for all Americans.
• $1 billion for prevention and wellness programs to fight preventable diseases and conditions with evidence-based strategies.
• $10 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart disease and stem cells, and to improve NIH facilities.
• $1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of the Secretary to evaluate the relative effectiveness of different health care services and treatment options.

Investments in Education and Training include:

• $53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities.
• $13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential.
• $12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children. This level of funding will increase the Federal share of special education services to its highest level ever.
• $15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students pursue postsecondary education.
• $3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth).

Investments in Energy include: 

• $4.5 billion for repair of federal buildings to increase energy efficiency using green technology.
• $3.4 billion for Fossil Energy research and development.
• $11 billion for smart-grid related activities, including work to modernize the electric grid.
• $6.3 billion for Energy Efficiency and Conservation Grants.
• $5 billion for the Weatherization Assistance Program.
• $2.5 billion for energy efficiency and renewable energy research.
• $2 billion in grant funding for the manufacturing of advanced batteries systems and components and vehicle batteries that are produced in the United States.
• $6 billion for new loan guarantees aimed at standard renewable projects such as wind or solar projects and for electricity transmission projects.
• $1 billion for other energy efficiency programs including alternative fuel trucks and buses, transportation charging infrastructure, and smart and energy efficient appliances.

Help for Workers and Families Hardest Hit by the Economic Crisis includes:

• $19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food Stamps, to increase the benefit by 13.6 percent.
• Child Care Development Block Grant: $2 billion to provide quality child care services for an additional 300,000 children in low-income families who increasingly are unable to afford the high cost of day care.
• Head Start & Early Head Start: $2.1 billion to allow an additional 124,000 children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school.
• State and Local Law Enforcement: $4 billion total to support law enforcement efforts.
• $555 million to expand the Department of Defense Homeowners Assistance Program (HAP) during the national mortgage crisis.

Unprecedented Oversight, Accountability and Transparency 

The American Recovery and Reinvestment Plan provides unprecedented oversight, accountability, and transparency to ensure that taxpayer dollars are invested effectively, efficiently, and as quickly as possible.

• Funds are distributed whenever possible through existing formulas and programs that have proven track records and accountability measures already in place.
• Numerous provisions in the bill provide for expedited but effective obligation of funds so that dollars are invested in the economy as quickly as possible.
• The Government Accountability Office and the Inspectors General are provided additional funding for auditing and investigating recovery spending.
• A new Recovery Act Accountability and Transparency Board will coordinate and conduct oversight of recovery spending and provide early warning of problems.
• A special website will provide transparency by posting information about recovery spending, including grants, contracts, and all oversight activities.
• State and local whistleblowers who report fraud and abuse are protected.
• There are no earmarks in this bill. 

Learn more about these targeted efforts: 

• Clean, Efficient, American Energy
• Transforming our Economy with Science and Technology
• Lowering Health Care Costs and Ensuring Broader Coverage
• Investing in Education for the 21st Century
• Modernizing Roads, Bridges, Transit and Waterways
• Tax Cuts for Middle-Class Families and Americav/newsroom/legislation?id=0273#healthn Businesses
• Helping Workers Hurt by the Recession
• Providing Strong Accountability Measures

Resources and Links

The White House has released state-specific details on the local impact of the American Recovery and Reinvestment Act.  Below are links to tables and fact sheets outlining the impact of the American Recovery and Reinvestment Act.  The estimates are derived from an analysis of the overall employment impact of the American Recovery and Reinvestment Act conducted by Christina Romer, Chair of the Council of Economic Advisers, and Jared Bernstein, Chief Economist for the Vice President, and detailed estimates of the working age population, employment, and industrial composition of each state.

·         Overview On American Recovery And Reinvestment Act

·         Impact Of American Recovery And Reinvestment Act On Working Families

·         Employment Numbers By State  

·         Employment Numbers By Congressional District

·         Education Fact Sheet

·         Energy Fact Sheet

·         Health Care Fact Sheet

·         Infrastructure Fact Sheet
 

Recovery.gov

Recovery.gov is a website that lets you figure out where the money from the American Recovery and Reinvestment Act is going. The money is being distributed by Federal agencies, and soon you'll be able to see where it's going -- to which states, to which congressional districts, even to which Federal contractors; in maps, charts, and graphics:

http://www.recovery.gov/
 

For additional information:

• Bill text will be available at: www.rules.house.gov/.
• The U.S. Government Printing Office text of the legislation: www.whitehouse.gov/the_press_office/arra_public_review/
• President’s Weekly Address to the Nation [February 14, 2009]: www.whitehouse.gov/blog/09/02/14/A-major-milestone/
• House Appropriations Committee: http://appropriations.house.gov/ 
• Speaker Pelosi’s site: http://www.speaker.gov/newsroom/legislation
• www.whitehouse.gov/the_press_office/State-by-State-Numbers
• House Rules Committee www.rules.house.gov/bills_details
• GOP.gov http://www.gop.gov/bill/111/1/hrreport
• House Majority Leader http://majorityleader.gov/press_releases 

To File or Not To File 

You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.

For example, a married couple both under age 65 generally is not required to file until their joint income reaches $17,900. However, self-employed individuals generally must file a tax return if their net income from self employment was at least $400.

Check the “Individuals” section of the IRS Web site at IRS.gov or consult the instructions for form 1040, 1040A, or 1040EZ for specific details that may affect your need to file a tax return with IRS this year.

Even if you don’t have to file, here are six reasons why you may want to file:

1. Federal Income Tax Withheld. If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, if you made estimated tax payments, or had a prior year overpayment applied to this year's tax.

2. Recovery Rebate Credit. If you did not qualify or did not receive the maximum amount for the 2008 Economic Stimulus Payment, you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return.

3. Earned Income Tax Credit. You may qualify for the Earned Income Tax Credit, or EITC, if you worked, but did not earn a lot of money.  EITC is a refundable tax credit meaning you could qualify for a tax refund.

4. Additional Child Tax Credit. This credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.

5. First time Homebuyer Credit. If you bought a main home after April 8, 2008, and before July 1, 2009 and did not own a main home during the prior 3 years, you may be able to take this refundable credit.

6. Health Coverage Tax Credit.  Certain individuals, who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit when you file your 2008 tax return.

For more information about filing requirements and your eligibility to receive tax credits, visit the IRS Web site at IRS.gov.:

• Forms and Publications
• Recovery Rebate Credit Information Center
• Earned Income Tax Credit
• First-Time Homebuyer Credit Information Center
• Health Coverage Tax Credit
• 1040 Central

For more information on federal taxes please visit IRS.gov.

What if I lose my job?  Is my unemployment check taxable? Can I afford to take money out of my retirement account?

These are just a few of the "What If" questions people are dealing with these days.

The IRS recognizes that many people are going through difficult times financially.  Often, there is a tax impact to events such as job loss, debt forgiveness or dipping into a retirement account.  If your income has decreased, you may even be eligible for certain tax credits, such as the Earned Income Tax Credit, which can mean money in your pocket!

Most importantly, if you believe you may have trouble paying your tax bill, contact the IRS immediately. There are steps the IRS can take to help. To avoid additional penalties, you should always file your tax return on time even if you are unable pay your tax bill.

Click here for some “What if” questions that are answered on the official IRS Web site.  For more, simply go to IRS.gov and type the keywords "What If" in the “Search” box at the top of the page.  

Mandatory E-Verify Use for Government Contractors Postponed until February 20th
Federal government agrees to delay enforcement due to pending lawsuit
 
Agreeing to a request by the U.S. Chamber of Commerce, the federal government will delay until February 20, 2009 the implementation of a new procurement rule that requires federal contractors and subcontractors to use E-Verify. The rule was scheduled to take effect on January 15, 2009.

Under current federal law, E-Verify use is strictly voluntary and the program may not be used to re-authorize existing employees. On December 23, 2008, the U.S. Chamber of Commerce filed a lawsuit challenging the use of an Executive Order to create a federal procurement rule requiring federal contractors with projects exceeding $100,000 and for sub-contractors with projects exceeding $3,000 to use E-Verify to authorize new employees and to re-authorize all of their existing employees. More...

Daily IRS Tax Tips Available For 2009 Filing Season       

The Internal Revenue Service is offering a daily series of Tax Tips for the 2009 federal tax filing season that began this month.

Tax Tips offer concise, useful information on topics affecting millions of taxpayers.   More than 70 tips on federal taxes will be available with a new one for each business day until the April 15 tax filing deadline.

Tips are available as easy-to-understand text as well as several audio files for podcast.

Sample text-based Tax Tip topics include:

• Choosing a tax preparer
• Where you can get free tax help
• How e-file can make filing easier and getting you your refund faster
• How to file for an extension or to amend your return
• What tax records to keep
• First-Time Homebuyer Credit

Taxpayers can receive new text-based Tax Tips via email when they are published by subscribing through the e-News Subscriptions page on IRS.gov.  When subscribing, the taxpayer will receive a confirmation message by e-mail that he or she must respond to in order to confirm the subscription.   Other list serves available on IRS.gov include Guidewire, which distributes IRS guidance, and Newswire, which distributes IRS press releases.

Correcting Errors on Employment Tax Returns 

There is a new processes in place for correcting errors on employment tax returns. The new “X” forms, available here, are now available for download. Links to each form and the instructions will be added as the forms become available.

To correct employment tax errors discovered on or after 1/1/2009, use the new corresponding “X” forms listed here to correct employment tax errors - as soon as they are discovered. For example, use the new Form 941-X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, to correct errors on a previously filed Form 941.

For more information, as well as a listing of the old--and corresponding new--forms, click here.

What are some popular New Year's Resolutions?

Well, the U.S. Government has addressed that question, and the answers are probably about what you'd expect. They include:

• Lose Weight
• Manage Debt
• Get a Better Job
• Get a Better Education
• Drink Less Alcohol
• Quit Smoking Now
• Reduce Stress
• Volunteer

Click here for the complete list, along with some practical advice on following through on those resolutions.

Spanish: Resoluciones de año nuevo más communes.

IRS Reminder: Make Use of Recent Tax Law Changes for 2008 - Dec. 31 Is the Last Day for Most of These Actions

Hear a podcast on this topic in English or Spanish. [Right-click and save MP3 file.]

Tax year 2008 is quickly nearing an end. The Internal Revenue Service (IRS) reminds taxpayers to avoid putting off important financial tasks until the last minute. The important deadline of Dec. 31 is fast approaching for many tax-planning issues.

The IRS also urges taxpayers as part of their year-end tax planning to be aware of recent tax changes as well as recently reinstated tax deductions. Some tax breaks and a review of your current tax situation may result in a bigger refund or less taxes to be paid come tax time.

Also, the IRS wants to make filing your tax return less stressful. Consider e-filing your tax return to ensure you maximize tax deductions, claim deserved credits, and take advantage of tax benefits. You may even be able to file electronically free of charge using IRS Free File.

The IRS offers these tax tips for you to consider:

First-Time Homebuyers Tax Credit — First-time homebuyers should begin planning now to take advantage of a new tax credit available for a limited time. The credit applies to primary home purchases between April 9, 2008, and June 30, 2009.  Normally, this tax credit must be paid back in equal payments over 15 years. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly. First-time homebuyers are those who have not owned a home in the three years prior to a purchase.

Real Estate Tax Deduction — There is an additional standard deduction for those who don’t itemize their deductions, but pay real estate taxes. The additional deduction amount is equal to the amount of real estate taxes paid up to $500 for single filers or up to $1,000 for joint filers. This deduction is available for the 2008 and 2009 tax years and increases your standard deduction.

Tuition and Fees Deduction — You may be able to deduct qualified tuition and required enrollment fees up to $4,000 that you pay for yourself, your spouse or a dependent. You do not have to itemize to take this deduction. However, a taxpayer cannot take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year. Income limits and other special rules apply to each of these provisions. To determine whether your expenses are qualified, refer to IRS Publication 970, Tax Benefits for Education. The 2008 edition is available soon online. This publication also describes other education-related tax benefits. 

Educators’ Out of Pocket Expense Deduction — The educator expense deduction allows teachers and other educators to deduct the cost of books, supplies, equipment and software used in the classroom. Eligible educators include those who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide in a public or private elementary or secondary school. Worth up to $250, the educator expense deduction is available whether or not the educator itemizes deductions on Schedule A.

Recovery Rebate Credit — If you did not qualify or did not receive the maximum amount for the 2008 economic stimulus payment you may be entitled to a recovery rebate credit when you file your 2008 tax return. Review the tax return filing instructions including the recovery rebate credit worksheet. You need to know the amount of the payment you received in 2008, which can be found on your Economic Stimulus Payment Notice (Notice 1378). Two online tools on IRS.gov will be available soon — the Recovery Rebate Credit Calculator will help taxpayers figure the amount they should claim on their 2008 tax return, and How Much Was My 2008 Stimulus Payment? helps you determine what your stimulus payment was.

New Rules for “Cash” Charitable Contributions — Since tax year 2007, to deduct any charitable donation of money, you must have a bank record, credit card statement or a written communication from the recipient showing the name of the organization and the date and amount of the contribution. In determining what may be deducted as a charitable contribution, see IRS Publication 526 for 2008 to be released in the near future.

Earned Income Tax Credit (EITC) — This credit is offered by the federal government to working families and individuals. You may qualify for the earned income tax credit, or EITC, if you worked, but did not earn a lot of money. EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld. If you qualify, the amount of your EITC will depend on whether you have children, the number of children you have, and the amount of your wages and income. For more information, go to www.irs.gov/eitc or see IRS Publication 596 for 2008.

Recordkeeping — Are your tax records organized? The IRS encourages taxpayers to take the time now to gather and organize their records to reduce stress at tax time. For tips, see Publication 552, Recordkeeping for Individuals, for 2008.  

Electronic Filing — The IRS encourages taxpayers to consider e-filing their tax returns. Nearly 90 million returns were filed electronically this year, accounting for about 58 percent of all filers. E-filing is easy, safe and accurate. The fastest way for you to receive a tax refund is to use IRS e-file and choose direct deposit. You can receive your refund in as little as ten days with IRS e-file and direct deposit. The error rate of an e-filed return is less than 1 percent compared to 20 percent for a paper tax return. IRS e-file is the most efficient way to prepare your taxes, particularly taking into consideration the 2008 tax law changes. About 70 percent of taxpayers can prepare and file electronically for free when they enter through IRS.gov and use Free File.

Tax Forms and Publications — Tax forms and publications can be accessed on this Web site or requested by calling the IRS toll-free at 1-800-TAX-FORM (1-800-829-3676).

Beware of Bogus E-mails — The IRS does not send unsolicited e-mails about your taxes. If you get an e-mail that appears to be from the IRS, it may be an attempt to steal your private information. Don’t click on any links in the message. Rather, forward the e-mail to phishing@irs.gov using the instructions at www.irs.gov.

IRS.gov Web site — Remember to use .gov when seeking the genuine IRS Web site. The address of the official IRS Web site is www.irs.gov. The IRS Web site contains a wealth of information for your tax planning and filing needs. Check out the latest tax changes on the site, and remember to e-file your tax return, which helps ensure you do not miss out on any tax deductions, credits and benefits.

Planning Your Income — Some taxpayers, such as the self-employed, may have some discretion regarding when they receive income. Properly deferring income until next year can lower your taxable income and tax bill this year. This strategy will, however, raise your tax bill next year. Publication 334, Tax Guide for Small Business, may be of help. And many taxpayers also have some control over their income via the sale of investments to incur a gain or loss. This is generally a key area of decision-making for investors. These decisions must be made and executed by Dec. 31 to be counted on a 2008 tax return. Publication 550, Investment Income and Expenses, for 2008, explains the rules.

Retirement Savings — Taxpayers have various options to save for retirement. You need to be mindful of their contribution deadlines and limits. For example, Dec. 31 is the deadline for contributions to a 401(k) plan, while April 15 is the deadline for IRA contributions. Taxpayers can get help from their 401(k) plan administrators where they work. Publication 560, Retirement Plans for Small Business, and Publication 575, Pensions and Annuity Income, may also help. You have more time to make contributions to individual retirement arrangements (IRAs) for a given tax year. You generally have until April 15 of the following year. Publication 590, Individual Retirement Arrangements, for 2008, can answer most questions.

Children — If you had or adopted a child in 2008, you should get a Social Security number for that child as soon as possible to ensure that you can include the child as a dependent on your 2008 return. Also, having or adopting a child in 2008 may mean you will receive a larger recovery rebate credit.

DOL's Employment and Training Administration providing assistance to America's workforce

The Department of Labor's Employment and Training Administration (ETA) contributes to the more efficient functioning of the U.S. labor market by providing high quality job training, employment, labor market information, and income maintenance services primarily through state and local workforce development systems. ETA seeks to promote pathways to economic liberty for individuals and families working to achieve the American dream.

• ETA's Web page for job-related resources and assistance.
• Employment and Training Administration Web site.
• One-Stop Career Centers
• DOL resources available for economic recovery

DOL Final Rule Expands FMLA for Military Families and Clarifies Rules for Workers and Employers

Final rule brings two-year public process to close with common sense reforms for modern workforce

The U.S. Department of Labor published a final rule on Nov. 17 to update its regulations under the 15-year-old Family and Medical Leave Act (FMLA) — a measure that will help workers and their employers better understand their rights and responsibilities, and speed the implementation of a new law that expands FMLA coverage for military family members.

Provisions in the final rule call for increased notice obligations for employers so that employees will better understand their FMLA rights, while revising the employee notice rules to minimize workplace disruptions due to unscheduled FMLA absences. The final rule also contains technical changes that reflect decisions by the U.S. Supreme Court and lower courts.

Featured final rule actions implementing the statutory expansion of FMLA for military families:

Military Caregiver Leave: Implements the requirement to expand FMLA protections for family members caring for a covered service member with a serious injury or illness incurred in the line of duty on active duty. These family members are able to take up to 26 workweeks of leave in a 12-month period.

Leave for Qualifying Exigencies for Families of National Guard and Reserves: The law allows families of National Guard and Reserve personnel on active duty to take FMLA job-protected leave to manage their affairs — "qualifying exigencies." The rule defines "qualifying exigencies" as:

1.      short-notice deployment

2.      military events and related activities

3.      childcare and school activities

4.      financial and legal arrangements

5.      counseling

6.      rest and recuperation

7.      post-deployment activities and

8.      additional activities where the employer and employee agree to the leave.

For additional information

• View the entire text of the final rule in the Federal Register at: http://www.federalregister.gov/page2.aspx#reg_W.
• For further information about the FMLA and the proposed regulations, visit the Wage and Hour Division's Web site at www.wagehour.dol.gov.
• See the complete ESA News Release, Number 08-1703-NAT [11/14/2008]