2009 may very well go down in history as the year of the 'Tax Credit' (among other things...but that is a topic for a whole other series of blog articles - not enough room here).
I would guess that we all know about the $8,000 tax credit for first time home buyers...but trust me, they don't stop there. so go ahead and look at the blog that I found that does a pretty good job covering them...
2009 Tax Savings Opportunities
Many tax incentives were enacted as part of the American Recovery and Reinvestment Act of 2009. Some of these may directly benefit you:
Tax Credits. Individuals earning $75,000 or less will receive a tax credit of $400 on payroll taxes paid in 2009 and 2010. Married couples earning $150,000 or less are eligible for an $800 credit.
Healthcare. A subsidy covering 65% of COBRA premiums for up to nine months is available to workers who were laid off between September 1, 2008, and December 31, 2009.
Education. Parents of college students can claim a tax credit of up to $2,500. Available in 2009 and 2010, the credit covers tuition, fees and course supplies such as textbooks.
Housing. The first-time homebuyer $8,000 tax credit has been extended and now allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits are available to buyers who sign purchase agreements on a new or existing primary residence between November 7, 2009 and April 30, 2010.
Green Homes. New tax credits are now available for green home improvements on a principal residence starting January 1, 2009, through December 31, 2010. The credit covers 30% of qualifying upgrade costs, or a maximum amount of $1,500.
Motor Vehicles. New car buyers can deduct the sales tax from their AGI on purchases of up to $49,500. The deduction is limited to car and truck purchases made from February 17, 2009, through December 31, 2009. There's also a tax credit for plug-in hybrid cars and trucks purchased between January 1, 2009, and December 31, 2010. The credit starts at $2,500 and is capped at $7,500.
The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor. We are not a law firm, nor a CPA firm.
Julie Chroust, Senior Mortgage Consultant
Prospect Mortgage, 6601 Owens Drive, Suite 155, Pleasanton, CA 94588
Office: 925-516-5809 * Cell: 925-381-1481 * Fax: 925-516-7555