Finding ways to save on your taxes can be a difficult task, especially when you are unaware of important tax deductions. You may be looking for a list of tax deductions for the 2009 year. Although we have a list of some tax deductions, there are several tax deductions that only a qualified tax accountant or tax preparation software can find. Finding tax deductions and tax credits is a great way to lower your taxable income, thereby lowering the amount that you are required to pay in income taxes. New tax deductions and credits are created each year and old ones are often modified or eliminated. It is important to be aware of all tax changes each year that may affect your income tax returns. Here’s a list of just a few tax deductions and credits that are available for the 2009 tax year.
Federal housing tax credit: This is available to first time home buyers and some repeat home buyers. This credit is for up to $8,000 and is fully refundable. In order to qualify for the credit, you must have purchased a home last year as a first time buyer or as a move-up buyer. (Move up credit was only available towards the end of 2009)
Student loan interest deduction: If you are paying off student loans, you probably are paying a bit of money each year in interest. You can deduct up to $2,500 from your taxes this year. There are certain income restrictions that are associated with this credit.
American opportunity tax credit: You can receive a credit that is up to 40% refundable for yourself, spouse, or each child that attended a higher education facility. This credit is not available to graduate students and can only be used for qualifying education expenses. The American opportunity credit is worth up to $2,500 for each person.
Vehicle sales tax deduction: By purchasing a vehicle last year, you may be able to write off the taxes and fees that are associated with the purchase of your vehicle. This credit is good for tax on the first $49,500 and does have income limitations.
Energy star tax credit: This is one of those new credits available this year. You can receive a credit for 30% of the cost of your energy star products. Only certain energy star products qualify. Some energy star improvements have a $1,500 limit while others have no limit. Check the official energy star website for more details.
The mentioned tax credits and deductions for 2009 are only a handful of the hundreds of tax write offs that are available. Before filing your taxes, read up on income tax filing, purchase a quality tax filing software, or just hire a qualified tax accountant.
Author: Allen Dukes