2010, 2011 Tax Breaks
Most taxpayers will be looking at all the possible savings and new 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 tax break 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 tax break for those who choose not to itemize.
Economic Stimulus Check
If you did not receive a stimulus check in 2007, don?t worry it?s 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.
Business Owners
There is some good news for business owners looking for more tax breaks this year. Due to the current state of the economy, the government has extended many tax breaks to business owners to try and stimulate the economy.
New Tax Breaks for Business Owners
Tax Credit for Hybrid Vehicle
A tax credit is subtracted directly from the total amount of federal tax owed. Taking advantage of this tax credit can reduce the amount of tax you owe or it may even eliminate it altogether.
This tax credit for hybrid vehicles applies to vehicles purchased or put into use on or after January 1, 2006. Keep in mind, only the original person who purchased the vehicle will get to claim the tax credit. The vehicle must be predominately used in the United States.
To find all of the new tax breaks please visit TurboTax Online. TurboTax Online has everything you need to get the biggest refund possible.
