Tax Changes 2009 Help From Joe Mastriano, CPA.
The American Recovery And Reinvestment Act of 2009 intended to stimulate the economy and included several tax relief provisions mostly for moderately and low-income taxpayers. In addition, ARRA encourages small business owners and includes a variety of income tax breaks for business start-ups and expenses.
The ARRA provides taxpayers with a new American Opportunity Tax Credit, which replaces the Hope Scholarship Tax Credit. Students may be entitled to claim a credit of up to $2,500 of the cost of college tuition and related expenses.
For high-income taxpayers, there are new provisions intended to help reduce their income tax. Beginning with 2009, a reduction in your itemized deductions will occur if your adjusted gross income is more than $166,800.
First time and existing homebuyers will benefit from an increased tax credit. A $6,500 tax credit is available for existing homebuyers. First time homebuyers may be eligible for a tax credit of up to $8,000.
There is good news for many working families: a refundable tax credit of up to $800 is available in 2009. If they qualify for the so-called Making Work Pay Tax Credit, working individuals who file an individual tax return may benefit of a maximum amount of $400.
The new standard deduction may reduce many taxpayers’ income taxes, even if it was just moderately increased.
For 2009, similar provisions provide many income tax breaks for taxpayers. For more information about tax changes 2009 to present, call us at 713 774 4467!
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