General Information

First time homebuyer credit-Now extended through April 30, 2010 and won't lapse on Nov 30th as previously scheduled. Binding sales contracts signed by April 30,2010 must be close by June 40, 2010 to qualify for the credit of up to $8,000. More higher-incomers can now claim it. For homes purchased after Nov 6., 2009 married couple can get up to $8,000 tax credit if their adjusted gross income is $225,000 or less.  For them the credit phases out over the next $20,000 of adjusted gross income and ends at $245,000 (phase-out). Full credit for singles up to income of $125,000 and partial credit up to $145,000 (phase-out).

             Do  you own a home? if you have a home , please provide mortgage, property tax and PMI( loan insurance) paid last year

             Even current homeowners can use this break for second home up to $6,500 if bought before April 30,2010.

Vehicle Deduction-If vehicle is bought after Feb 16, 2009 and before Jan 1, 2010, you can deduct the state and local sales taxes paid on the vehicle. There is no limit on the number of vehicles that may be purchased, but deduction per vehicle is limited to the tax on up to $49,500 of the purchase price of each qualifying vehicle. Deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A.

Tax Credit for College-New credit changes existing Hope credit for tax years 2009 and 2010, allowing for broader range of people, including taxpayers with higher incomes and those who owe no tax. There is a maximum annual credit of $2,500 per student and 40% of the Hope credit is now a refundable credit, meaning that you can receive up to $1,000 even if you owe no taxes.

Go Green-Home energy tax credit. If you add insulation or install energy-efficient replacement windows, doors or skylights in your primary residence by end of the year, you can qualify for a tax credit equal to 30% of the cost, up to a maximum of $1,500.

Unemployment- The first $2,400 received as unemployment  is tax deductible.

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