Getting more money back on your 2009 taxes can be as simple as finding an IRS income tax credit. Income tax credits are available to more people than ever, thanks to the American Recovery and Reinvestment act that was signed last year by president Obama. The bill created more tax incentives and tax credits that will have an impact on millions of Americans this tax season. The energy star tax credit, Federal housing tax credit, and American Opportunity tax credit are just a few of the tax credits that are available this year. By claiming an IRS income tax credit, you can reduce your tax liability dollar for dollar. This is different from a deduction because you are actually reducing your tax bill. With a tax deduction, you lower your taxable income. With a lower taxable income you will pay less income tax.


There are several IRS income tax credits available to individual tax payers. Each credit has its own limitations so be sure to check with the IRS website to determine your eligibility before attempting to claim a tax credit. Here are just a few excellent tax credits that are available for the 2009 income tax year:

American opportunity tax credit – Extension of the hope credit. Receive up to $2,500 per student

Federal housing tax credit – First time home buyers can receive an $8,000 credit and move up buyers may be eligible for a $6,500 credit

Energy star tax credit – If you replaced certain products in your home with energy star products, you may be eligible to write off up to 30% of the cost of your products

Making work pay tax credit – Worth up to $400. Most people saw this credit as a reduction in taxes each paycheck

Hybrid car tax credit – If you purchased an eligible Hybrid car last year, you could be eligible for a tax credit up to $3,400

There are many other tax credits available. If you would like to significantly reduce the amount that you pay in taxes, you may want to consider hiring a qualified tax accountant. A qualified tax accountant can find ways to save money on your taxes that you may have never known existed.

Author: Abdullah Patel