So, what should you remember from the past year that will have an impact when you file taxes?
Tuition
Did you pay tuition? Back in February 2009, the American Opportunity Credit for 2009 and 2010 (was the HOPE credit enhanced by February's stimulus bill). What's cool about the 2009 version? It has a higher phaseout for income, and a higher maximum credit. Income for singles is now at $80,000 to $90,000 and joint filers $160,000 to $180,000. The maximum credit is now $2500 with 40% refundability.
Home improvements
Home improvements made in 2009 will help this year's taxes. The energy-efficient home improvement tax credit was revitalized as well thanks to the February stimulus plan. In 2009, a 30% credit was offered for up to $1500 spent. This credit can be used on most energy-efficient appliances such as furnaces, water heaters, and also insulation, windows, roofs and fans. If your purchase qualifies for the credit, it should come with a "qualifying" sticker from the manufacturer.
New car
Bought a new car? Purchases made between February 17th to December 31, 2009 are offered a deduction, allowed for up to $49,500 of the new car's price. For this type of benefit, the income limit is extremely high. For singles, the limit is $125,000, and joint filers up to $250,000.
Property taxes
Don't forget this deduction when you are looking over real property taxes. A new deduction ($500 for singles, and $1000 for married couples) was added last year for non-itemizers. If you don't itemize...don't forget this deduction.
Also, Consumer United has teamed up with TurboTax® to make times a little easier. File your simple return for FREE with TurboTax® Federal Free Edition. Click here to start saving.
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