Tax season rolls around every year, whether we like it or not, and it’s really best to be prepared for any new tax credits or deductions that have been created since you last filed. In fact, it’s probably a good idea to go ahead and refresh your memory for any good tax tips from prior years as well.
This year, Congress introduced several new tax saving methods in the American Recovery and Reinvestment Act. Here are a couple of highlights:
Homebuyer Tax Credits ~ In addition to a pretty strong buyers market right now in the real estate world, there are some nice home buyer tax credits. First time home buyers can receive a $8,000 credit while those who have been in a home for five years but have bought something new may be able to get a $6,500 tax credit.
Residential Energy Incentives ~ The government is keen to see you go green and they’ve devised a few incentives to push you along. Credits that were set to expire have been extended and the amount of credit you can claim on energy efficient improvements has been raised as well.
Education Tax Credits ~ Perhaps you’ve heard of the Hope Credit, well now that’s been replaced with the American Opportunity credit. This new and improved credit will extend help to more taxpayers than before and raises the potential credit to $2,500 versus the old $700.
These are just a few of the new tax credits we’ve seen this year. Take your time and really explore all of the potential tax savings that are now available and you might just be surprised what you can save.
Well… that’s quiet interessting but to be honest i have a hard time understanding it… wonder how others think about this..
Ah! This is awesome! Thank you for dispelling a few
confusion I had seen about this lately.