Money Back for New Vehicle Purchases

Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales taxes they paid. The American Recovery and Reinvestment Act of 2009 (ARRA) provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless whether a taxpayer itemizes deductions on Schedule A. Purchased before February 17, 2009 are not eligible for the special deduction. Purchases must be made prior to January 1, 2010.

The deduction is limited to the tax on up to $49,500 of the purchased price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.

Tax Credits for Home Energy Efficiency Improvements

Tax Credits for Home Energy Efficiency Improvements Home Owners can get bigger tax credits for making energy efficiency improvements or installing alternative energy equipment: a credit of up to 30% of the cost of qualifying improvements up to $1500, such as adding insulation, energy efficient exterior windows, energy efficient heating and air conditioning systems.

First Time Homebuyer Credit Expands

First Time Homebuyer Credit Expands - Home buyers who purchase a home from January 1, 2009 to November 30, 2009, may be eligible for a refundable tax credit up to $8,000 with no payback requirement. If you have not owned a home in the last 3 years, you may still qualify to be a first time homeowner. This credit applies to the purchase of taxpayers principal residence. If you have purchased a home this year and closed escrow, we can amend your 2008 return and request the credit now instead of waiting until you file next year's tax return. This credit reduces a tax payers bill or increases their refund dollar for dollar. This refund is fully refundable and will be paid to eligible taxpayers.

For houses purchased between April 8, 2008 and December 31, 2008 there is a first time home buyers credit up to $7,500 that will have to be paid back, the credit is similar to a no interest loan and must be repaid in 15 equal annual installments beginning with the 2010 income tax year.