New Tax Credits Yield Higher Tax Refunds in 2010

As you know by now, this country’s recent Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, perpetually jobless and looking for any means necessary to get back on a financially-healthy track.

However, there may be a silver fiscal lining to this year’s spring season: The Recovery Act's tax credits. Now we’re seeing that tax time—normally considered a harrowing economic experience for many Americans—is yielding it a bit of a reprieve for some cash-strapped citizens struggling to stay afloat amid rising education costs, mortgages, and even car payments.

As Rep. John Larson recently relayed to The Huffington Post, “tax cuts were the biggest individual component of the Recovery Act. Even though only half of taxpayers have filed so far this year, tax refunds are already up nearly 10% from last year due to the Recovery Act.”

So, as you file your 2009 income taxes, it may be a welcome surprise to see that you qualify for a many of the Recovery Act’s new tax cuts, simply because you, for example, saved money for higher education, made energy-saving home improvements, purchased a home for the first time or even at all, or, maybe even bought a new car.

Specifically, Rep. Larson fleshed out the following new tax credits available through the Recovery Act that you might be eligible for, including:

The Making Work Pay tax credit
The vast majority of  “working families” have already received the Recovery Act's Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks. You’ll be happy to know that you’ll also see these benefits in 2010.

Tax credits for college expenses
Getting ready for college? The American Opportunity Credit provides up to $2,500 in tax savings for families and students in addition to enhanced benefits under “529 college savings plans, which help families and students pay for college expenses.”

The Homebuyers tax credit
Were you one of the millions who bought homes in 2009 or early 2010? Under the Homebuyer tax credit, homebuyers like you receive a substantial credit - up to $8,000 for first-time home buyers and up to $6,500 for upgrade homebuyers - for homes under contract by April 30, 2010 and purchased by June 30, 2010.

Tax credits for energy efficient renovations
Have you made home improvements this year? You may be eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.

The vehicle sales tax deduction
Did you buy a car between February 17, 2009 and December 31, 2009?  Under the vehicle sales tax deduction, you can deduct the state and local sales taxes paid for your new vehicle purchase.

Expanded family tax credits
Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.

Tax-free unemployment benefits
Under the Recovery Act, “individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings.”

A qualified bankruptcy attorney can help when you find yourself short on cash during tax time—or anytime.  If you have tax debt from previous years, you may even be eligible for a discharge of those pesky tax debts. Call a qualified bankruptcy specialist today and find out how you can set yourself free from debt. Specifically, the bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-833-627-0115, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.