With Wednesday, April 15 looming large on the horizon and more and more Americans looking to make the most of every dollar, there are a few tax tips that could help save hundreds this spring.Homeowners in particular are well-positioned to take advantage of these tax tips.
For example, homeowners are eligible for an additional standard deduction off of the standard deduction for property taxes. Single filers are eligible for a $500 deduction and $1000 for couples. This could make it more advantageous for some to take the standard deduction instead of itemizing deductions.
Another beneficial new provision is the first-time homebuyers' credit which allows the homeowners to take up to a $7,500 credit against their income taxes in the year of purchase. The purchase must be made between April 9, 2008 and July 1, 2009. The best part is that to take the credit, it does not have to be the very first time a buyer has owned a home. To take the credit, the buyer must not have had an ownership interest in a home over the course of the three years prior to the purchase of the home.
Contributing to I.R.A.'s can also lessen a taxpayer's responsibility, and beginning in 2008, the maximum contribution increased to $5,000. The maximum amount increases by $1,000 for individuals who will be 50 by the end of the year. If you're running behind schedule, contributions made until April 15th 2009 will count toward 2008.
For more information and to ensure that you're not missing out on any tax breaks, visit the IRS site here for individuals. Also, TurboTax Online Federal Free Edition lets you file federal taxes online – FREE!
--Bridget O'Sullivan
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