|Whats New for 2009?
|Making Work Pay Credit
Individuals with earned income in 2009 may be able to claim a tax credit of up to $400, $800 if married filing jointly.
First time homebuyer credit
For a purchase in 2009 before December 1, 2009, eligible homebuyers may qualify for a tax credit of $8000 or, if less 10% of the purchase price.
Hope Education credit expanded
The Hope credit for 2009 and 2010 has been expanded and renamed the American Opportunity credit. The maximum credit is generally $2,500 per student and it is allowed for the first four years of post-secondary education.
Unemployment compensation partially untaxed
Recipients of unemployment compensation in 2009 may exclude from income the first $2,400 of benefits received.
Tax law changes for 2009 that May Affect your Taxes
- First-time homebuyer credit:
The credit increase to as much as $8,000 ($4,000 if married filing separately) for homes bought after 2008 and before May 1,2010.
- Homebuyer credit for current homeowners:
A refundable credit of up to $6,500 (up to $3,250 for married filling separate) for long-time homeowners buying a replacement principle residence between Nov.7,2009 and April 30,2010,and close on the home by June 30,2010.
- American Opportunity credit for current homeowners:
The modified Hope education credit has increased to $2,500, and if quality, is refundable.
- Earned income credit (EIC):
The EIC has increased for people with three or more children and for some married couples filing jointly. The thresholds for modified adjusted gross income have increased.
- Alternative Minimum Tax (AMT):
The AMT exemption amount has increased to $46.700 ($70,95C if married filing jointly or a qualified widow(er):$35,475 if married filing separately).
The standard deduction for lax payers who do not itemize deduction on schedule a has increased. The amount depend on your filing status.
- Qualified Motor vehicle tax deduction:
If you bought a qualified new motor vehicle in 2009 after 16, you able to deduct Any state or local sales or excise taxes on the purchase.
- Standard mileage rates:
For 2009, the standard mileage rate for the cost of operation your car for
Business use is 55 cents per mile. For medical reasons or moving expenses, the Rates is 24 cents per mile.
- Credit for non business energy property:
You may be able to take this credit for qualified energy-saving home improvement made in 2009.
- Government retiree credit:
You may be eligible for this refundable credit if you receive a government Pension or annuity, but it reduces any Making work pay credit amount.