The IRS has been extremely lenient on tax payers for 2009 and there are several credits that you may be eligible for.

  • Did you buy a house in 2009 as your principle residence?
  • Did you buy a new car in 2009?
  • Did you welcome a new baby into the family?
  • Did you purchase energy efficient appliances or new doors/windows for your home?
  • Did you pay any college tuition or make any payments on student loans?
  • Did your business suffer a loss due to the recession in 2009?

If so, you may be able to expect a bigger refund this year!

Please give me a call and we can discuss your taxes for 2009 and begin your tax planning for 2010.

Earned Income Credit (EIC)

The EIC is designed to offset the burden of Social Security taxes for low-income workers. You can claim this tax credit even if you have no tax liability.

Child Tax Credit

You can claim $1,000 for each child. The 2009 Child Tax Credit begins to phase out when your AGI is more than these limits:

  • $75,000 if Single, Head of Household or Qualifying Widow(er)
  • $110,000 if Married Filing Jointly
  • $55,000 if Married Filing Separately
Saver's Credit

If you qualify, you could get a tax credit for up to half of what you contribute to a qualified retirement plan or IRA. Claim the Saver's Credit if you meet all the qualifications:

  • You're age 18 or older.
  • You aren't a full-time student.
  • You aren't claimed as a dependent on someone else's return.
  • Your AGI doesn't exceed $27,750 ($55,500 if Married Filing Jointly, or $41,625 for Head of Household).
Charitable Donations

If you itemize income tax deductions, you may deduct your charitable donations. You'll want to keep good records or all your donations.

  • Money Donations — Receipts are required for all money donations.
  • Item Donations — Give new or used goods to charity and deduct their fair market value. Special rules apply to donations of vehicles and to donations of appreciated property (property that is worth more than you paid for it).
  • Volunteering — Deduct 14¢ per mile while driving for charity. You can also deduct other out-of-pocket expenses.
Out-of-pocket Job Expenses

Keep track of job expenses not reimbursed by your employer. You could deduct these costs:

  • Driving expenses (the non-commuting kind)
  • Travel expenses
  • Uniforms
  • Union dues
  • Continuing education expenses