Five tax credits you should know about!
Have you ever wondered how to get extra money back from tax returns? While these tips may not all apply to you and your situation, here is a list of five different tax credits being offered by the government that you may be unaware of.
Now that we are in tax season and most people are rushing to get their tax returns filed to get the money back as soon as possible, there are some new tax credits that you may or may not be aware of. Below is a list of five different tax credits being extended to us by the government this tax season.
Homebuyers: You may already be aware that if you purchase a new home as a first time home buyer before 4/30/2010 you can get a $8000 tax credit. But did you also know that the law was expanded to include homeowners that have lived in their house for five years and are now buying a new home before that date can also get $6500 back? Also, the income level for the credit was raised to $125,000 a year and if your income ranges between 125k to 145k you will also be eligible for a partial credit.
Students: There is a new credit called the American Opportunity credit which will be replacing the Hope Credit temporarily. This is good news with the cost of going to school so high. If you are a student with an income of less than 80k per year you can qualify for a credit of up to $2500 which is $700 higher than the Hope Credit. You can now also claim the credit for 4 years of college instead of two and also claim required materials for school including books, tuition, computers, etc.
Going Green: You can now get a credit of up to $1500 for home improvement projects designated to save energy. Projects that qualify include things like putting in energy efficient windows, insulation, water heaters, and air conditioning/heating units. It is recommended to check with Energy Star to find out more details on what projects qualify to get the 30% refund.
Employees: The new Making Work Pay credit will give individuals a credit of $400 and married couples $800. Most of us have already seen the credit because of the adjustments in the Federal Income Tax tables and the credit can be claimed in section M. But if you are an individual making more that $75000 annually or a married couple filing jointly you cannot make over $150000 annually.
Car Buyers: If you purchased a new car from Feb. 17, 2009 through the end of last year then you can write off the state and local sales tax of the vehicle. The IRS is also encouraging you to save on energy by giving a $7500 credit for certain electric plug in vehicles.
I hope this post gives you some helpful information this tax season and make sure that if you are not comfortable doing your taxes on your own or unsure how to maximize your return, hire a professional.
Source:http://money.cnn.com/2010/02/25/pf/taxes/new_tax_breaks/index.htm
Add Your Comment
About the Author
ChrisNMy name is Chris Nicholson and I am a Certified Personal Financial Counselor here at CESI. I am originally from Yorktown, Virginia and I am married to my wonderful wife Shilo. I have been here for about 3 years now and the thing I love most about working here at CESI is knowing that I am truly helping families get to the "light at the end of the tunnel" to financial freedom.
New Forum Topics
- Review and Comments - Started by robbinsmith
- Let the professionals handle it. - Started by AJohnson
- Why would you not want to be debt free? - Started by AJohnson
- The Brief Guide to Enrollment - Started by ddsrocky
- Favorite Gadget - Started by protickp420
About CESI
CESI is a not-for-profit organization for consumers in search of financial independence and freedom from debt. We offer a wide range of services from debt management to credit counseling to financial education. And We're dedicated to helping you find the debt solutions that work for your situation. More...
Comments
On 03/21 at 05:19 AM,
Ewans said:
Very impressed with the knowledge you are posting here. Thanks for sharing and let us know more about new releases.
On 04/15 at 11:06 AM,
autos said:
Deductions and exemptions only reduce the amount of your income that is taxable. Tax credits reduce the actual amount of tax owed.
On 04/15 at 03:49 PM,
best car insurance said:
Tax credits may be characterized as either refundable or non-refundable, or equivalently non-wastable or wastable. Refundable or non-wastable tax credits can reduce the tax owed below zero.
On 04/19 at 03:29 PM,
Rick said:
The American Opportunity credit is awesome. My son used it and we are happy parents now.
On 04/20 at 03:49 PM,
truck driver jobs said:
Tax credits may be characterized as either refundable or non-refundable, or equivalently non-wastable or wastable. Refundable or non-wastable tax credits can reduce the tax owed below.truck driver jobs
On 04/21 at 11:56 AM,
robert said:
Thanks for the above information and i found great stuff in your website article…
car insurance
On 04/21 at 12:16 PM,
Karolína said:
In modern taxation systems, taxes are levied in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states and their functional equivalents.Karolína
On 04/21 at 06:47 PM,
salt lake restaurants said:
Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax.salt lake restaurants
On 04/26 at 08:24 AM,
wisconsin land said:
Cool,I really enjoyed the quality information you offer to your visitors… Will be back often to check on the new stuff you post!land wi
On 04/27 at 06:04 PM,
daniel said:
Thanks for the above information and i found great stuff in your website article…
cash advance payday loans
On 04/29 at 11:57 AM,
GMC Topkick Dual Suspension Mountain Bike said:
Tax credits may be characterized as either refundable or non-refundable, or equivalently non-wastable or wastable. Refundable or non-wastable tax credits.GMC Topkick Dual Suspension Mountain Bike
On 05/06 at 05:51 AM,
Free backgrounds said:
Tax credits may be characterized as either refundable or non-refundable, or equivalently non-wastable or wastable. Refundable or non-wastable tax credits.Free backgrounds
On 05/24 at 12:46 PM,
Mark said:
Gives Thanks for getting the sentence to post overmuch a detailed and informative article. It has given me a plenty of aspiration and I feeling modern to more umteen like this successful the future..
auto accident claim
On 05/25 at 04:31 PM,
CARLSONJanell19 said:
I had a desire to make my company, nevertheless I did not earn enough amount of cash to do that. Thank goodness my mate recommended to use the credit loans. Thence I used the term loan and realized my dream.
On 06/13 at 09:43 PM,
rabbit vibrators said:
Tax credits are may proved as a very useful for students.It also incriminate students and teachers both of them knowledge.Thanks for those useful information.
On 06/13 at 09:44 PM,
Prince said:
Tax credits are may proved as a very useful for students.It also incriminate students and teachers both of them knowledge.Thanks for those useful information.
rabbit vibrators
On 06/15 at 03:16 PM,
dildos said:
I am agree with Prince that,Tax credits are may proved as a very useful for students.It also incriminate students and teachers both of them knowledge.Thanks for those useful information.
dildos
On 06/30 at 12:15 AM,
square peg web said:
Tax credits may be granted for various types of taxes (income tax, property tax, VAT, etc.) in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviors.
On 07/08 at 02:26 AM,
life insurance quotes said:
Tax credits may be granted for various types of taxes (income tax, property tax, VAT, etc.) in recognition of taxes already paid, as a subsidy.
On 07/08 at 04:21 AM,
life insurance quotes said:
I hope this post gives you some helpful information this tax season and make sure that if you are not comfortable doing your taxes on your own or unsure how to maximize your return, hire a professional.
On 07/20 at 03:56 PM,
Grants for school said:
Hey this is really good news with the cost of going to school so high. If you are a student with an income of less than 80k per year you can qualify for a credit of up which is higher than the Hope Credit. You can now also claim the credit for 4 years of college instead of two and also claim required materials for school including books, tuition, computers.So that’s great.
Grants for school