2009 Tax Savings Opportunities

2009 Tax Savings Opportunities


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Many tax incentives were enacted as part of the American Recovery and Reinvestment Act of 2009. Some of these may directly benefit you:

Tax Credits. Individuals earning $75,000 or less will receive a tax credit of $400 on payroll taxes paid in 2009 and 2010. Married couples earning $150,000 or less are eligible for an $800 credit.

Healthcare. A subsidy covering 65% of COBRA premiums for up to nine months is available to workers who were laid off between September 1, 2008, and December 31, 2009.

Education. Parents of college students can claim a tax credit of up to $2,500. Available in 2009 and 2010, the credit covers tuition, fees and course supplies such as textbooks.

Housing. The first-time homebuyer $8,000 tax credit has been extended and now allows a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits are available to buyers who sign purchase agreements on a new or existing primary residence between November 7, 2009 and April 30, 2010.

Green Homes. New tax credits are now available for green home improvements on a principal residence starting January 1, 2009, through December 31, 2010. The credit covers 30% of qualifying upgrade costs, or a maximum amount of $1,500.

Motor Vehicles. New car buyers can deduct the sales tax from their AGI on purchases of up to $49,500. The deduction is limited to car and truck purchases made from February 17, 2009, through December 31, 2009. There’s also a tax credit for plug-in hybrid cars and trucks purchased between January 1, 2009, and December 31, 2010. The credit starts at $2,500 and is capped at $7,500.

We are not CPA's nor tax advisors but hope these tips will be of help and lead you to ask your advisor how you might benefit from these.