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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Facing a struggling economy, lawmakers in Washington, D.C., turned to the tax code to help get it, and us consumers, moving again. Most of the tax changes were part of the stimulus package enacted last February, the American Recovery and Reinvestment Act of 2009. There are seven new tax laws you should know, and some adjusted for inflation. Bankrate s 2010 Tax Guide
Tax breaks were created, or in some cases expanded, for autos and home purchases, as well as for certain residential improvements. Uncle Sam now pays more of some educational costs. Some workers get bigger tax benefits to offset their commute to work. Folks who no longer have jobs at least get some tax relief. Even how you pay your IRS bill could turn into a deduction. Here’s a look at some popular tax laws that could come in handy as you work on your 2009 tax return. 1 More homebuyer credits
A few months later, Congress extended the credit for the rest of the year (as well as into 2010). At that time, lawmakers added a new credit for “long-time” homeowners who’ve owned and lived in their residences for at least five consecutive years of the eight years before they buy a new house. Those folks now might qualify for a $6,500 credit. While the first-time home purchase credit is generally a good thing for taxpayers, it will require some care in claiming it. Because of the various law changes, different income eligibility limits apply depending on when you bought the house and which type of buyer, first-time or move-up, you are. 7 new tax laws Homebuyer credits. New vehicle deduction. Expanded education credit. Home energy improvements credit. Unemployment income exemption. Bicycle commuter benefit. Credit card convenience fee deduction. The new law also requires stricter proof of purchase. This safeguard against fraud requires you to send in a copy of settlement sheet, so you won’t be able to file your 2009 return electronically. And that could slow down your refund. 2 New-car sales tax deductions
This isn’t a new option for taxpayers who itemize. But now even taxpayers who claim the standard deduction can take advantage of the . Standard deduction filers will have to fill out a new form, Schedule L, to claim the automotive sales tax. Itemizers still will have the choice of claiming the deduction for the sales tax on Schedule A. Just don’t count on writing off the sales taxes on a luxury vehicle. The deduction is limited to the tax paid on up to $49,500 of a vehicle’s purchase price. You can, however, claim the tax deduction for each new vehicle you bought last year. And your deduction might be limited by your income. You’ll get a partial deduction if your income as a single taxpayer is between $125,000 and $135,000; between $250,000 and $260,000 for joint filers. If you make more than those top amounts for your filing status, you can’t claim any amount. 3 Expanded education credit
In addition to upping the credit amount, the American Opportunity Credit can be claimed for expenses for the first four years of post-secondary education, versus the first two years of expenses allowed under the Hope Credit. More expenses can be counted in calculating the new credit. Its income limits are larger, meaning more folks making more money — up to $90,000, or twice that for joint filers — can claim at least a partial credit. And if you claim the American Opportunity Credit but don’t owe the IRS, you still might still get a refund. Forty percent of the credit if refundable, which means you could receive up to $1,000 even if you owe no taxes. 4 Enhanced home energy credits
Homeowners who make energy-efficient improvements to their existing homes now can claim a credit of 30 percent of the cost of all qualifying upgrades, up to a maximum credit of $1,500. This covers such relatively simple things as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems. If you really want to take the extra energy-efficiency step, more-costly and complex upgrades, such as various solar, wind and geothermal systems, offer a credit of 30 percent of the purchase price with no maximum credit cap. In these cases, the cost of installation also can be used in the credit calculation. Improvements must meet and must have been put into service at your home during the tax year. 5 Jobless benefits less taxing
6 Biking tax break
7 Deduction for credit card fees
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