Obama’ Stimulus plans has passed the House and Senate to work its way through economy. The plan is designed to boost the economy, help home owners, college students and unemployed.

Taxes: You can expect to see around $13 extra in your weekly paychecks, or $26 in your biweekly paychecks starting around June. This is a part of new $400 tax credit to be rolled out through the rest of the year. Couples would get up to $800.

Child Tax Credit: If you do not make enough money to pay your taxes, you will receive $100 in child tax credit.

Home Purchase: If you are a first time home buyer before Dec 1 2009, you will receive $8000 in tax credit.

Home Renovation & Repairs: If you include energy efficient appliance, windows, air conditioners, or insulation, you can get tax credit to cover 30% of the purchase cost upto total of $1500.

College Students: If you are a college student or a parent of a college student, you are eligible for tax credits of up to $2,500 to help pay tuition and related expenses in 2009 and 2010.

Unemployment: If you are currently receiving unemployment benefits this year, you wouldn't pay any federal income taxes on the first $2,400 you receive.

Health Insurance: If you work for a medium or large size employer and you loose your job, you can continue your health cover for another 18 months under the COBRA plan. If you lost your job after September 2008 but didn't elect to have COBRA coverage at the time, you will have 60 days to sign up.

Consequences: This stimulus plan will increase our already 10 Trillion Dollar national debt. US citizens are going to be affected by this debt for years to come. The interest alone on the debt in 2009 is going to be $500 billion. No matter how much money we get now, we will have to pay the money back at some time in future. Whether the plan makes a dent in the economy or not, get ready to pay more money in taxes in coming years.

Home purchase might not be a good investment since the home prices have not stopped falling yet. In order to get $8000 tax credit, you might loose $20,000 to $40,000 in your house value. Invest carefully.