Mother Lode Tax Tips

As the October 15^th tax deadline for filing your individual tax return approaches I just wanted to remind you of some of the special incentives that may be available to you this year.  These incentives are part of the American Recovery and Reinvestment Act of 2009 and were legislated to promote the economic recovery.  It is still not too late to take advantage of these credits, so if you were thinking about the possibilities of any of the items below, now may be the time to do it.

First Time Homebuyer Credit:  If you haven’t owned a home in that last three years and purchase one prior to December 1, 2009 you may be eligible to receive a refundable credit of up to $8,000.  This credit is no longer required to be paid back as it was when it was originally enacted and is fully refundable, which means even if you don’t owe any tax you can receive the credit.  For more information: Video, Podcast

College Tax Credits:  The new American Opportunity Credit modifies the existing Hope Credit for tax years 2009 and 2010.  The modifications make it easier to qualify, thus opening up the credit to a broader range of taxpayers and which can help defray the cost of an education for the first four years.  The maximum annual credit is $2,500 per student.  For more information: Video, Audio

Vehicle Purchase Incentive:  If you purchase a new vehicle between February 16 and December 31, 2009 you may qualify to deduct the sales and excise tax that you have paid even if you do not itemize deductions on your tax return.  This deduction qualifies for new cars, light trucks, motor homes and motorcycles up to a limit of a purchase price of $49,500.  This credit does get limited or phased out for taxpayers with higher incomes.  For more information:  Audio

Energy Home Improvements:  If you made any energy related home improvements to your existing home for 2009 they may qualify for an energy credit.  For 2009 the credits have been increased and qualifying improvements include insulation, heating and air conditioning systems, and exterior windows. For more information: Video, Audio

Tags: Credits, Homebuying, IRS, Tax

This entry was posted by Richard Rogers, EA on Monday, September 14th, 2009 at 9:07 am and is filed under Credits, For Individuals. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.