12 way to save on taxes this year

Tax Time














1) If you bought a house:





The tax credit for first time home buyers was extended and they also added a tax credit for someone how already owned a home, but bought a new one, they can benefit as well up to $6500.00.











2) You have a child in college:





They have an American Opportunity tax credit for 2009 and 2010. They also still have the Hope Credit and the Lifetime Learning Credit. All of the give you a tax break on your college child, you will just need to pick which one is the best fit for you.





American Opportunity tax credit: you can claim $2500.00 per student per year for the first four years of college.





Hope Credit: You can claim $1800.00 per student for the first two years of college.





Lifetime Learning Credit: You can claim $2000. per return.











3) You bought a New Car:

If you bought a light truck, new car, motor home, or motorcycle after Feb. 16th 2009, you can deduct the sales taxes you paid on up to $49,500. of the vehicle's price. This can be done with a special one year write off and you do not have to itemize.

4) You were out of work: Your first $2,400 is tax free on your unemployment you claimed. If you and your spouse both claimed unemployment then $4,800 is tax free. If you paid the full tab for health insurance you may have some write offs.

5) You helped those in Haiti: You have until March 1 2010 to donate to help those in Haiti and you can claim that on your 2009 taxes.

6) You had investment losses: If you sold securities at a loss in 2009 and you had owned the shares for more than a year, those losses can be claimed along with any losses you carried over from 2008.

7) You weathered a disaster: If you had damage to your home and your insurance company with not pay the full bill you can claim the part not covered.

8) You made energy efficient home improvements: 2009 offers taxpayers more green for going green. You can take a credit worth 30% of what you spent on energy saving skylights, replacement window water heaters, and the like.

9) You own property, but do not itemize: For 2009 tax year joint filers who don't itemize are allowed to deduct as much as $1,000. of those taxes.

10) You moved for work: If you ended up relocating for a full-time position that's at least 50 miles farther from your old home than your last fob was, you can deduct your moving expense.

11) You are a high earner: You'll get credit for your kids, You get more from itemizing

12) You Picked up a second job: If you spent time selling things on ebay, or consulting for a former boss, you probably have a business by IRS standards. There are a whole host of writeoffs.

Crunch them ###

This article was in money magazine