Claim your full tax cut this Tax Day
Be sure that you are taking advantage of all of the tax credits in the American Recovery and Reinvestment Act that you are eligible for. 95% of working Americans will be eligible for assistance, as part of one of the largest tax cuts in history. The Recovery Act created more than two dozen different tax cuts– amounting to more than $800 billion in tax cuts for working families and small business in the Recovery Act.
Here are a few of the benefits you may be eligible for:
- The Making Work Pay tax credit – Ninety-five percent of working families are already receiving the Recovery Act’s Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks – and will continue to see these benefits in 2010.
- Tax credits for college expenses – Families and students are eligible for up to $2,500 in tax savings under the American Opportunity Credit as well as enhanced benefits under 529 college savings plans, which helps families and students pay for college expenses. More than four million additional students will be able to attend college thanks to this tax credit.
- The First Time Homebuyers tax credit – First time homebuyers can get a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit.
- Tax credits for energy efficient renovations – Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.
- The vehicle sales tax deduction – Taxpayers can deduct the state and local sales taxes they paid for new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009 under the vehicle sales tax deduction.
- Expanded family tax credits – Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.
- Tax-free unemployment benefits – Thanks to the Recovery Act, individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings.
Even if you missed out on any of these tax cuts, there is still time to amend your 2009 return to get the full benefits for the Recovery Act. To help you determine which benefits you are eligible for this tax season and how to collect those benefits, the White House has created an online tax calculator.