Tax Credits For 2009: Are They Helpful Or Hurtful To You?
According to the IRS there are many ways that you
, as an individual, can receive tax credits this year. As to be expected, many of them have certain regulations and stipulations, but you may be able to save more than you think.
Included in some of the tax credits available to individuals is a simple tax credit called the Making Work Pay credit. If you currently have a job, or had one this year, you may already be feeling the effects of this credit as it was designed to give you more take home pay at the end of each month.
Another credit available to individuals is the first-time home buyer credit. Even though this is not a new credit it has been expanded and extended. First time home buyers can now receive up to $8,000 worth of credit with no payback requirements.
There are a few other tax credits already in place that have seen an increase for the 2009 and 2010 tax years as well. These include the earned income tax credit, and the additional child tax credit. If you qualify for either one of these credits check out the IRS website for more information.
Benefits in the areas of employer-provided transportation and parking, health coverage and energy efficient and renewable resources have also increased and are becoming available to more people as well.
The health coverage credit increases from 65 percent to 80 percent of qualified health insurance premiums and gives more people an opportunity to receive this credit.
Also, if you buy certain new cars in 2009 you can also receive a tax credit amounting to the local and state sales taxes in your area. If there are no sales taxes in your state, lucky you, you may deduct other taxes and fees paid.
The education tax credit is however new and has been designed to give a break to students and families who are paying for higher education expenses. It may also help them find easier and possibly even cheaper ways of doing so.
If you are or were unemployed for part of 2009 and you received unemployment checks you will be happy to know that the first $2,400 is tax free. Check your individual tax withholdings for more individual information.
Still feeling left out? If you are a railroad retiree, social security recipient or a veteran, you will receive a $250 tax credit automatically. These credits will be paid to you by the Social Security Administration, Department of Veterans Affairs and the Railroad Retirement Boards respectively.
Are you surprised by these individual tax credits? Many of these credits have been increased or added as part of President Obama's American Recovery and Reinvestment Act of 2009.
This act was put into place in February of 2009 by the 111th United States Congress as a way to re-stimulate the economy by giving American's more money to spend.
Whether you agree with this administration or not, these tax credits may help you save money on your taxes and have more cash to spend in the long run on things you need.
There are other types of tax credits to consider as well when filing your taxes for 2009. Most of them are business tax credits.
Included in that list are many of the same credits as the individual list. Some of these include the Working Pay Credit, the Work Opportunity Credit, COBRA, Energy and Renewable Resources Credits, Net Operating Loss (for small businesses), and Municipal Bonds Programs.
The IRS also cautions that they do not send out emails to debtors, and if you do receive an email from someone acting as them, do not reply and report it on the fraud section their website. Be aware also of emails or phone calls from people asking you to file your taxes.
Always be sure you are speaking with a representative or company that you trust whether it is through email or phone calls.
by: Jack Landry
How Credit Card Debt Elimination Can Get You Out Of Debt Bad Credit Bank Loans Numerous Interesting Facts Concerned To Accredited Online Distance Learning How Fico Scores Affect You Personal Loans with Bad Credit – More Financial Stability by Online Support What Is A Production Tax Credit? What Is A Renewable Energy Credit? Debt Consolidation Loans –Help you to Eliminate Bad Credit Right Away Online Personal Loans for Poor Credit - Affordable Loans with Your Desire Fund Cash Back Credit Cards - What Should You Know?
0 Apr Credit Card - Truths And Traps Choosing And Using Credit Cards
Cash Back Credit Card Offers - Searching For Perks