Tax season is here once again and with it are many changes to the tax law. Highlights of the new tax provisions include homebuyer credits, unemployment credits, education credits, and health coverage credits.
The homebuyer credit was expanded and extended on November 6, 2009. The provisions according to the IRS website (http://tiny.cc/homebuyer250)?include:
An eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
The new law also:
- Authorizes?the credit for long-time homeowners buying a replacement principal residence.
- Raises the income limitations for homeowners claiming the credit.
- The 2009 first-time homebuyer credit increased to $8000
Additional provisions for individual tax payers include (http://tiny.cc/IRS568):
Money Back for New Vehicle Purchases. Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales tax they paid or other taxes and fees they paid in states with no sales tax.
Up to $2,400 in Unemployment Benefits Tax Free in 2009.
Health Coverage Tax Credit. The credit increases from 65 percent to 80 percent of qualified health insurance premiums, and more people are eligible.
Education benefits. The new American Opportunity Credit and enhanced benefits for?529 College Savings Plans help families and students find ways to pay for college.
Visit the IRS website for a complete list and explanation of new provisions for both individuals and businesses.
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