For the past few weeks, news on the Hill has been dominated by negotiations over the$787 billion  economic stimulus package, which President Obama signed on Tuesday. While the bill addresses a range of issues and players in the economy (from small businesses to state government funds), in terms of personal finance it’s helpful to understand what the stimulus holds for individuals.

Individual taxpayers will receive a tax credit of up to $400; married couples will receive up to $800. The credit is for working individuals with earned income and won’t come in the form of a check (unlike the 2008 stimulus rebate). Most workers will receive the money in their paychecks over the course of 2009 and 2010. The stimulus tax credit is phased out gradually for those making more than $75,000 per year ($150,000 for married couples).

Low-income workers will also see increased earned income tax credits, and many middle-class taxpayers will see a temporary reprieve from the Alternative Minimum Tax.

The stimulus also provides incentives for first-time home buyers, and buyers of new cars. Those who purchase a primary residence before December 1, 2009 will receive an $8,000 credit, and new car buyers in 2009 can take a deduction on the sales tax from the purchase.

In response to the stimulus package, a Fox News poll shows that 76 percent surveyed think that “Americans are starting to rely too much on the government and not enough on themselves,” with 54 percent saying that they don’t trust the government. For us, the bottom line is: every individual should have the tools available to knowledgably manage his or her own finances.