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Tax Tips for 2009 Returns

 

Making Work Credit:

ll working taxpayers will get a $400.00 credit on their 2009 return.

 

First-Time Homebuyer Credit

This credit has been extended to April 30, 2010. The credit is $8000.00 and does not have to be repaid.

 

A new $6500.00 credit is also available for a home purchase if the taxpayer has lived in the same principal residence for any five consecutive years during the eight year before the new house is purchased. You must enter into a contract by April 30, 2010 and close by June 30,2010.

 

Tax Deduction on Car Purchase

If you purchased a car, truck, or motorcycle between February 17 and December 31, 2009, you may be able to deduct sales tax paid on the vehicle.

 

College Credits:

The credit for college paid for taxpayer and dependents has changed. The amount has been increased to $2500.00 per eligible student. This applies to all four years of  college.

 

Unemployment Benefits:

You can exclude $2400.00 of unemployment benefits from taxable income.

 

Energy Credit:

A credit of up to $1500.00 is available for energy improvements to your residence.  This includes replacement windows and doors, insulation, and heating systems.

 

Capital Gains Tax

Taxpayers in a 10% or 15% tax bracket will pay no tax on capital gains for 2009. This also applies to qualified dividends.