MOUNTAINSIDE — The IRS reminds taxpayers to take advantage of the American Recovery and Reinvestment Act of 2009 tax breaks that are still available. Tax incentives are still available for making energy efficient improvements to your home and for college expenses paid by parents or students.
Residential Energy Property Credit – the Recovery Act increased the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The credit rate is increased to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010. The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.
American Opportunity Credit – this credit expanded and renamed the already-existing Hope credit, making it available to a broader range of taxpayers. The credit can be claimed for tuition and certain fees you pay for the first four years of higher education in 2009 and 2010. The income guidelines have been expanded and required course materials are added to the list of qualified expenses. Many taxpayers that are eligible will qualify for the maximum annual credit of $2,500 per student.
For more information on the recovery tax provisions, go to the IRS.gov website homepage and access the “Tax Benefits of the American Recovery and Reinvestment Act of 2009” section.
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