Time Running Out on Recovery Act Tax Benefits

With time running out for taxpayers to take advantage of some of the juicier tax benefits offered through the American Recovery and Reinvestment Act of 2009, the IRS has now launched YouTube videos, radio public service announcements (PSAs) and multi-lingual informational flyers that provide basic information for taxpayers. In addition, the IRS has updated the Recovery Act tax benefit information on its web site.

Just to review, a few of the tax breaks available to families and individuals through the American Recovery and Reinvestment Act include:

• The first-time homebuyer credit which provides a maximum $8,000 tax credit to people who meet eligibility requirements and complete the purchase of their homes before Dec. 1;
  
  
• The American opportunity credit expands education tax credits to $2,500 for tuition and a change in 529 plans allows for the purchase of computers for college use;
  
  
• The energy credit expands to a maximum of $1,500 for certain energy-saving upgrades
  
  
• A new deduction for the sales or excises taxes paid on the purchase price of new vehicles;
  
  
• The Making Work Pay tax credit, which many American workers received in April through reduced tax withholding in their paychecks. The Making Work Pay credit is $400 for single taxpayers and $800 for married taxpayers who meet certain income guidelines. However, some people, such as married spouses, workers with two jobs, pensioners, some Social Security recipients and dependents, should check their tax withholding to ensure they are not having too little withheld.