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11 Ways the Government is Padding Your Wallet This Summer

Free money from the government. It sometimes feels like everyone else is getting a handout from the government right now.

However, I’m willing to bet that you are too! Let’s see where the government money is padding your wallet this summer.

Free Money from the Government

  1. Making Work Pay Tax Credit Eligibility [1]. There was a lot of hype last year about this tax credit, but did you know it covers 2010 too? Don’t forget you’re getting lower withholding this year; it’s not yet included in the tax brackets [2].
  2. Social Security Donut hole [3]. The $250 donut hole checks are in the mail this summer. Good news for seniors on a fixed income.
  3. 0% Capital Gains Tax [4]. If the Bush tax cuts expire [5] at the end of this year, the 0% capital gains tax will be gone. I’m planning to execute quite a few strategic sell-offs throughout the year to seize this opportunity. It’s one of many tactics in How to Take Charge of the Bush Tax Cuts [6].
  4. Free Money for Kids Untaxed [7]. Kids get a unique opportunity to earn money tax free. Encourage them to take advantage of it, or do some creative family planning to shift some of your income to your kids.
  5. Governement Unclaimed Money [8]. Be sure to check the unclaimed money databases to see if you have missing money. I did.
  6. Cash Rewards Credit Cards [9]. Did you know that credit card cash rewards are not taxable? The IRS generally considers the cash back as rebates on your purchases and allows you to earn them tax free.
  7. Student Loan Forgiveness [10]. A new program for college kids, future student loan forgiveness could amount to a nice chunk of free money.
  8. Mutual Fund Settlements [11]. The money won’t come from the government, but since it was a federal court decision, it’s making the list!
  9. Flexible Spending Account Changes for 2011 [12]. With the FSA changes next year, your account will be more limited. However, there is still an opportunity to stock up on over the counter medicines tax free in 2010.
  10. Tax Credit for Existing Homeowners [13]. For those who qualified for the $6500 tax credit or the $8000 first time home buyer tax credit, it’s expanded until Sept. 30.
  11. 2010 Roth Conversion [14]. We can’t forget to include the Roth conversion this year. While you won’t see the free money this year, you’ll definitely reap the rewards for years to come when you start your tax free withdrawals!