Some Laws You Should Know Before You Do Your Taxes
May 16, 2010 by Rapid Recovery Solution
Filed under Taxes
In the present day’s recession the changes seem massive. Just last year a number of tax laws were written to bail us out of dire situations. These are a few new tax laws that you should know about.
The first is about new car sales and tax deductions. If you bought a new vehicle, including a car, motorcycle, light truck or motor home, on or after February 16th 2009 and by December 31st 2009, any excise or sales tax paid may be looked at as a deduction.
In 2010 as well as 2009 the American Opportunity Credit replaces the Hope Education credit. This new credit is worth $2,500 per student, this is based off the first $4,000 of qualifying educational expenses.
For homeowners that make improvements to their existing homes, energy efficient changes can claim a credit of 30 percent of the cost of all of the upgrades, up to as much as $1,500. This also includes things such as adding insulation, energy efficient exterior windows and energy efficient air conditioning and heating systems.
Last year was harsh for a good deal of workers, and layoffs hit record levels. However, unemployment compensation is considered taxable income. But now, the first $2,400 in benefits is excluded from income.
Because of the Bicycle Commuter Act, cyclists would receive reimbursement of workplace transportation costs into a tax favored account and bikers can take the cash to put towards purchase of a bicycle, helmet, bike lock, bike parking fees and general bike maintenance.
In addition, if you pay your income tax by credit or debit card, you can deduct the convenience fee that will be charged for the transaction. The card fee, as well as any other IRS approved miscellaneous deductions must exceed 2 percent of your adjusted gross income before they will count. Even though this measure limits the value of this break for many, filers with substantial expenses to claim should be sure to add the card fee.
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