Monday, March 22, 2010

Ten money-saving tax reminders

Upper part of 1040 tax form with pencil and pencil shavings lying on itIf you haven't already filed, it's time to get started on your 2009 tax return. These 10 money-saving tips might save you so much on taxes that you can hold off applying for short term installment loans or payday cash advances.

1. Homebuyers

First-time homebuyers may be entitled to a credit of 10 percent of the price, for a maximum credit of $8,000. The homebuyer credit is not limited to first-time buyers. Buyers who owned homes and bought new ones after Nov. 6, 2009, may be entitled to a credit of 10 percent of the purchase price, for a maximum credit of $6,500. Buyers must have lived in their previous homes for five consecutive years in the past eight, must have a house under contract by April 30, 2010, and must close by June 30.

2. Energy-saving improvements

For 2009, homeowners may be entitled to credits worth 30 percent of the amount spent on energy-saving windows, water heaters and other qualified improvements, up to a combined limit of $1,500 for 2009 and 2010. Installation of solar, wind, or geothermal energy systems may entitle homeowners to 30 percent credits with no limits.

3. Vehicles

Sales taxes on purchase prices of to $49,500 for new cars, light trucks, motorcycles, and motor homes purchased after Feb. 16, 2009, can be deducted on 2009 returns. Vehicles purchased through the Cash for Clunkers program are included. Taxpayers do not have to itemize deductions to claim the credit, although in some states, it may sometimes be more advantageous to include sales taxes in itemized deductions. The credit is limited to certain income amounts, and depending on income, some taxpayers may receive only partial credits. ... click here to read the rest of the article titled "Ten money-saving tax reminders"

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