Assemblyman Fred W. Thiele, Jr. (R,I,C,WF-Sag Harbor) today reminded the residents of the 2nd Assembly District that due to the American Recovery and Reinvestment Act of 2009 being signed into law, the Internal Revenue Service (IRS) will be implementing new provisions that will affect residents tax returns. A summary of the changes is below:
- Making Work Pay A refundable tax credit of up to $400, or $800 if filing a joint return;
- First-Time Homebuyer Credit Amended A refundable tax credit of up to $8,000 for homes purchased before December 1, 2009 (criteria apply);
- Money Back for New Vehicle Purchases A deduction for state, local, sales, and excise taxes or other fees paid when buying a new car, light truck, motor home or motorcycle from February 17 through December 31, 2009;
- Temporary Increase in Earned Income Tax Credit Increases to income limits and credit percentages for working families with three or more qualifying children;
- Temporary Increase in Refundable Portion of Child Tax Credit Reduces the minimum earned income tax amount used to calculate the additional child tax credit to $3,000;
- Up to $2,400 in Unemployment Benefits Tax Free in 2009 For the year of 2009, taxpayers can exclude up to $2,400 of unemployment compensation;
- The American Opportunity Tax Credit Hope Credit extended two years, and up to $2,500 of allowance expenses may be refundable;
- Qualified Opportunity Tax Credit For 2009 and 2010 qualified expenses for higher education tax free distributions is expanded; and
- Residential Energy Credits 30% break of up to $1,500 for adding qualifying improvements placed into service in 2009 and 2010.
"Due to the complexity of our tax code, tax season is always a stressful time of year. I wanted to alert my constituents about these new tax provisions so that they can avoid any additional stress when they go to file their taxes next April. The sooner they look into how these provisions will affect them, the sooner they can take advantage of certain tax credits and make necessary changes to ensure that they will not result in them owing the IRS money in April," stated Thiele.
If you have any questions about the new IRS tax provisions, you can visit their website at www.irs.gov or contact Assemblyman Thiele at 631-537-2583.