Vice President Biden Announces Recovery Act Putting More Money Back in Middle Class Taxpayers’ Pockets This Year

Launches New WhiteHouse.gov Tax Savings Tool to Help Taxpayers Take Advantage of Recovery Act Tax Credits

WASHINGTON – With the 2010 tax filing season underway, Vice President Joe Biden, Treasury Secretary Tim Geithner and IRS Commissioner Doug Shulman today announced that that average tax refunds are up nearly 10 percent this year, due in large part to the significant new tax benefits available under the American Recovery and Reinvestment Act (Recovery Act), and reminded taxpayers that they can collect on those benefits this year as they file their 2009 tax returns.  To help taxpayers see for themselves exactly how they can benefit from Recovery Act tax credits and collect every dollar owed when they file this tax season, the White House today launched a new interactive Tax Savings Tool available at www.WhiteHouse.gov/Recovery.

“The big guys know all the credits and deductions to claim during tax season, but we want middle class families to know just how much is out there for them this year thanks to the Recovery Act – and how to take advantage of it,” said Vice President Biden.  “From help with college expenses to credits for cost-saving, energy-efficiency home improvements, these Recovery Act tax credits not only provide some needed relief for working Americans, but also help them invest in their families’ futures.”

“The more that individuals and families take advantage of these benefits, the more money is pushed back into the economy, helping all Americans as we grow our way out of this crisis,” said Treasury Secretary Geithner.  “Only by getting these benefits to the American people can we help ensure that the recovery is firmly established. And only by firmly establishing the recovery can we encourage the creation of new jobs and lay a foundation for sustained economic growth.”

"The average tax refund has reached $3,036 this year, a $266 increase from a year ago," said IRS Commissioner Shulman. "The Recovery Act is a major factor behind these larger, record refunds. About half of all Americans haven’t filed their taxes yet, so we urge them to look carefully at these Recovery provisions. Taxpayers should also remember that the fastest, best way to get their tax refund is by filing electronically with direct deposit."

During these tough economic times, Recovery Act tax cuts are helping hard-hit middle class families.  This year’s tax refund puts more money in the pockets of families across the country, and gives them incentives to make energy-saving home improvements, purchase a new vehicle or buy a home.  Those purchases are helping to jumpstart the economy and provide more clean energy, manufacturing and construction jobs for working families right here in the U.S.  The Recovery Act’s nearly $300 billion in tax benefits are helping to rebuild the long-term strength of the economy, while helping middle class families get back on firm financial footing