How will stimulus plan affect you?

— -- As economists and policymakers brawl about whether President Obama's economic stimulus plan will help the moribund economy, regular folks have a more basic question: What's in it for me? In this week's Your Money, we'll answer readers' questions about the $787 billion bill signed into law last week.

Q: Who qualifies for the $8,000 credit on the purchase of a new home?

A: You must be a first-time home buyer, which the law defines as someone who hasn't owned a primary home for three years prior to the home purchase.

If you haven't owned a home for the past three years but your spouse has, neither of you qualifies, says Rob Dietz, director of tax issues for the National Association of Home Builders.

You must also purchase the home between Jan. 1 and Dec. 1. Taxpayers who purchased a home in 2008 are eligible to claim a $7,500 credit, but that credit must be repaid over 15 years. The new credit doesn't have to be repaid as long as you stay in your home for three years.

Q: I'm buying a new home from a builder. Will I qualify for the credit?

A: Yes, as long as you close on the purchase between Jan. 1 and Dec. 1, says Bill Killmer, executive vice president for the NAHB.

If you're building the home yourself — for example, you've hired a contractor to build a home on a lot you already own — the date of purchase is defined as the date of occupancy, Killmer says. So to qualify for the credit, you'll need to move into your home by Dec. 1.

Q:I'm planning to buy a home for $50,000. Will I get a tax credit for $8,000?

A: No. The credit is equal to 10% of the home's purchase price, up to a maximum of $8,000. So your credit would be limited to $5,000.

Q:Do I have to wait until next year to claim the credit and get a tax refund? I need some patio furniture now.

A: The law allows taxpayers who purchase a home in 2009 to treat it as if it occurred on Dec. 31, 2008 and claim the credit on their 2008 tax return, Dietz says.

If you've already filed your 2008 tax return — or buy a home after you file your 2008 taxes — you can file an amended return and claim the credit, Dietz says.

Q: I'm planning to buy a used car. Will I qualify for the new sales tax deduction?

A: No. The sales tax deduction is limited to purchases of new cars and trucks Feb. 17 through Dec. 31. However, your vehicle doesn't have to be a 2009, says David Hyatt, spokesman for the National Automobile Dealers Association. As long as you're the first owner, he says, the vehicle qualifies as new.

Any new car or truck with a gross vehicle weight of less than 8,500 pounds is eligible for the deduction, which means all vehicles purchased for personal use qualify, Hyatt says. Motorcycles and motor homes also qualify for the deduction, he says.

Q:Is there a limit on the price of the vehicle?

A: The deduction is for sales taxes on purchases of up to $49,500. If you buy a more expensive vehicle, you'll still be allowed to claim the deduction, but only on the tax that applies to the first $49,500 of the price.

Q: Isn't there already a deduction for sales taxes on cars and trucks?

A: Yes, but that sales tax deduction comes with two big caveats. First, you have to itemize to claim it. If you claim the standard deduction, you're ineligible. Second, if you live in a state that imposes income taxes, you have to choose between deducting sales taxes or income taxes, says Amy McAnarney, executive director of H&R Block's Tax Institute. Many taxpayers elect to deduct their state income taxes because they're higher than the amount they pay in sales taxes.

The new sales tax deduction for purchases of new cars and trucks is an above-the-line deduction, which means you don't have to itemize to claim it. Double-dipping isn't allowed, so if you itemize and deduct your sales taxes, you can't claim an above-the-line deduction for the same expense. But if you claim the above-the-line deduction for your sales taxes and you itemize, you can deduct your state income taxes, too.

Q:What years are covered by the new education tax credit?

A: Parents of dependent college students and independent students can claim a credit of up to $2,500 a year to offset the cost of tuition, textbooks and fees in 2009 and 2010. To qualify, the expenses must have been paid after Jan. 1. For example, if you paid some of your 2009 tuition in late 2008, that payment doesn't count toward the credit, according to tax publisher CCH.

Sandra Block covers personal finance for USA TODAY. Her Your Money column appears Tuesdays. Click here for an index of Your Money columns. E-mail her at: sblock@usatoday.com.