This year, there are numerous new and expanded deductions and credits for a variety of taxpayers. Some tax credits include: College tax benefits for parents and students; first-time homebuyers; green homeowners and businesses; and even tax breaks for home buyers and car buyers.
According to Cyrus Ellison, owner of Tax City Inc. in Atlanta, GA, under the American Recovery and Reinvestment Act (ARRA), more parents and students will qualify for a tax credit to pay for college expenses. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.
For first-time homebuyers, there is a refundable credit equal to 10 percent of the purchase price up to a maximum of $8,000 ($4,000 if married filing separately).
Also, people who weatherize their homes or purchase alternative energy equipment may qualify for either of two expanded home energy tax credits: the non-business energy property credit and the residential energy efficient property credit.
Finally, there is a new vehicle tax incentive which allows new car buyers to deduct the state or local sales or excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. There is no limit on the number of vehicles that may be purchased, and eligible taxpayers may claim the deduction for taxes paid on multiple purchases.
For more information about tax credits that are available to taxpayers, contact Cyrus Ellison at his Norcross location at 770-246-3871. For updates, follow on Facebook at http://Facebook.com/
About Tax City
TAX CITY is the fastest growing Income Tax Preparation Service Company in Georgia, with more twenty metro Atlanta area locations to serve taxpayers. Specializing in electronic filing (IRS e-file), TAX CITY provides full-service individual federal and state income tax preparation and facilitates related financial products. TAX CITY was established with the vision of becoming the best provider of year-round Income Tax Services to the general public. TAX CITY offers services in English as well as Spanish. Great service is always the order of the day.
