The time of year has come to look over your tax situation and decide how you are going to handle preparing your taxes this year. Millions of Americans have the same question every year – How can I save the most money on my taxes and receive the largest, biggest, fattest check? The answer to the question that everyone wants to know is that you have to take advantage of all the great tax deduction or tax credits that the IRS allows us.
This year, Obama created the American Recovery and Reinvestment act which has allowed many Americans to write off deductions and take credits that will put some much needed money back into our pockets. There are several items, besides those contained in the act, that reduce your tax liability and increase your refund amount. Here are a few tips that you may have not known about that will reduce your tax bill.
- Take a credit worth up to $2,500 if you, your spouse or child attended a higher learning institute for half of the year while trying to receive a degree or certificate
- If you purchased a home last year and were a first time homebuyer you may be eligible to take a credit for up to $8,000.
- Do you earn a low income? You may qualify for the earn income credit that is worth up to $5,657 depending on your income and number of children
- Take a credit up to 30% if you installed select energy star products in your home last year. This only includes select items and does not include installation cost
- You can claim a credit of up to $12,150 if you adopted a child last year. The credit covers money that you spend in the process of adopting your child.
There are many ways to save money on your taxes this 2009 tax year. It is always a good idea to check with a qualified tax accountant before filing your income taxes.
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: Allen Dukes