New Federal Tax Breaks for 2008, 2009
Most taxpayers will be looking at all the possible savings and tax breaks they are eligible for in the coming tax season. There are some new ones as well as some that have been around for awhile that are often overlooked.
Investment Income
New for 2008 will be the 0% tax rate on investment income. For a short period taxpayers with income up to $61,100.00 can receive their dividends and long term capital gains tax free. This one is set to expire as soon as 2010.
Property Taxes
The new Housing Assistance Tax Act for 2008 allows for a deduction on your property taxes of up to $500.00 on single filer and up to $1,000.00 if you are married and filing jointly. This is a great deduction for those who choose not to itemize.
Economic Stimulus Check
If you did not receive a stimulus check in 2007, donʼt worry itʼs not too late. Claim this credit for 2008 and you can receive a check this year for yourself or any qualifying dependents.
Recovery Rebate Credit
This new credit will allow you to receive the entire amount of your economic stimulus if you were previously not eligible or received a reduced amount. You are eligible for this credit even if your income is from social security or disability payments.
Medical Expenses
You may deduct any qualifying Medical Expenses if they exceed 7.5% of your AGI. If you have any upcoming medical expenses in early 2009 you may want to try and get those done before 2009 to allow you a greater deduction on your return.
Related posts:
- How to Calculate Federal Income Tax Federal Income tax is calculated based on the formulas...
- Additional Child Tax Credit Amount for 2009, 2010 One of the most common tax credits is the...
- Federal Income Tax, Married Filing Separately Your filing status is usually determined by whether or...
- New Federal Income Tax Laws Are you up-to-date on the new tax laws that...
- Donate a Vehicle to Charity Tax Deduction Make Sure the Organization is Eligible You may want...