Don't Miss these 2009 Tax Deductions
SOME PEOPLE WAIT UNTIL THE LAST MINUTE BEFORE FILING FEDERAL
INCOME TAXES EACH YEAR. IF YOU ARE AMONG THIS NUMBER, YOU
MIGHT FIND THE FOLLOWING TAX DEDUCTIONS AND CREDITS TIMELY.
• Improve your retirement readiness. Open a traditional IRA or
contribute to an existing one. You have until your tax filing
deadline (without extensions) to do so. If you qualify, you may
deduct the contribution from your 2009 adjusted gross income.
• If you changed jobs, you may be able to claim some expenses. Two
examples are fees paid to a resume service or employment agency.
Also include travel to job interviews as a miscellaneous expense.
Only miscellaneous expenses exceeding 2% of your adjusted gross
income are deductible.
• If you moved closer to your new job, you may get to deduct some
moving costs when you meet travel time and distance requirements.
• You may qualify for a tax credit of up to $8,000 if you bought a
home last year. This is available if you did not own a home in the
previous three years and closed on a primary home purchase on or
before December 31, 2009. A lower credit may be available if you
are a long time homeowner and bought a new home between
November 6 and December 31, 2009.
• Deduct sales, local and excise taxes on the purchase of some new
cars in 2009. Deductions are limited to taxes on a purchase of up to
$49,500, subject to income limitations.
• Take a tax credit of up to $1,500 for making qualified energy-efficient
improvements for your home in 2009. Improvements include energyefficient
windows, insulation and heating and air conditioning units.
• Take the American Opportunity Tax Credit, formerly the HOPE
Credit, for qualified education expenses. For tax years 2009 and 2010
only, this credit has been extended to taxpayers with higher incomes.
The credit also is partially refundable for taxpayers whose liability is
less than the credit amount.
Talk to your tax professional to learn more about these and other
tax breaks.
