Tax Credits You May Be Eligible For! Credit Cards

Tax Credits You May Be Eligible For!

24 Mar, 2010 Credit Cards Eligible

You probably already know about the Making Work Pay tax credit and the Home Buyer tax credit, but did you know you might be eligible for a tax break thanks to your text message donation, or for job-hunting expenses, or simply being a college student? Check out the following tax credits and deductions to ensure you are maximizing your deductions as you file your 2009 taxes.

For Mom and Dad
Your child could slash your tax bill up to $1,000, reports Kiplinger, with tax credits allocated according to their ages and your income. The basic child credit allows you to claim up to $1,000 for each child under 17 if you meet the income eligibility requirements. This also varies with how many children you have, and your adjusted gross income. The new refundable tax credit—expanded last year by the economic-stimulus package—has an earned-income base dropped from $8,500 to $3,000 to allow more Americans, who have lost their jobs or had hours cut, to take advantage of the credit. The earned-income base dropped from $8,500 to $3,000, which boosts the refund amount available to qualifying taxpayers, and provides 15% refund of earned income that exceeds the $3,000 threshold. Those who don’t have to file a tax return because they owe no tax can still collect this refund with this tax credit. There is also a child-care credit which is good for up to $300 for each child, with $600 being the maximum if you have more than one child. Check out Kiplinger for more details.
For Job-Seekers
While unemployment benefits are usually taxed, did you know that the first $2,400 of unemployment benefits received in 2009 is exempt from federal income taxes? To take advantage of this tax break, subtract $2,400 from amount of total unemployment compensation shown on Form 1099-G (from state unemployment agency) to determine taxable amount to report on your form 1040. Check out more details on tax breaks for lower income and unemployed Americans on this Kiplinger post.

Did you know that some job-hunt related expenses, such as printing resumes or traveling across the country for an interview or hiring a career coach, can be deducted from your taxes? CNN Money reports that some of these job-search expenses can be itemized on your tax return to cut down costs. However, personal maintenance expenses, like a manicure or new clothes, for a job interview are definitely not deductible.
For Eco-Friendly Homeowners
Some energy-efficient home improvements, such as insulation, efficient air-conditioning units, heat pumps, skylights, etc, may earn you a tax credit. The new home energy credit offers a tax credit equal to 30% of cost of making energy-efficient home improvements up to a max $1,500. This is for any income level and no need to itemize to claim credit, only fill out Form 5695. Also, if you installed renewable-energy devices—like solar-powered water heaters, solar panels, geothermal heat pumps, etc—you get an even bigger tax break of 30% of cost with no maximum. More info can be found on Kiplinger!
For College Students
The new American Opportunity credit, enacted in 2009, is a more generous tax credit the previous Hope credit. It gives college students a break by providing a maximum annual credit of $2,500 per student for each of the first four years of college, and eligible taxpayers must pay at least $4,000 in tuition, fees, and course materials and is 40% refundable. If your child can’t take advantage of the credit because you don’t meet income eligibility, MarketWatch suggests you weigh the benefits of claiming the student as a dependent versus letting the student file on his own to take the refundable credit.
If You Donated To Haiti
There is a special tax break for those who donated to help victims in Haiti, which can be deducted from total value of that donation on your 2009 or 2010 form. However, this must be itemized and you must have donated money (not clothes or food) as well as proof of the donation to a U.S charity. If you made your donation over text message, use your cell-phone bill as proof. Check out this IRS page for more details.

If you are planning to claim any of these tax credits, make sure you read all details to determine your eligibility, file it correctly, and claim it on time. Sit down with a professional or research on the internet to be aware of all the types of tax claims available to you; don’t let a break from Uncle Sam pass you by!

Credit Card Offers

Apply For The Right Credit Card