Tax Changes for Tax Year 2009

Income Tax Changes for 2009

  1. Important tax changes for tax year 2009 include but are not limited to:
  2. First Time Homebuyer Credit of $8,000 extended until April 30, 2010
  3. Homebuyer credit of $6,500 for non-first time homebuyers who purchase new home
  4. New American Opportunity Tax Credit for college students up to $2,500, now includes books and materials
  5. Earned Income Credit now available for three children
  6. Child Tax Credit increased for people making less than $12,500 per year
  7. New $400 “Making Work Pay” tax creditFirst $2,400 of unemployment income not taxable for 2009 only
  8. New car purchase in 2009, you can deduct the sales tax even if you use the short form
  9. Conversion of a Traditional IRA to a Roth IRA allowed for high-income earners
  10. Carryover loss rules changed in favor of business owners with business loss in 2009
  11. Foreclosure tax relief for bankruptcy or insolvency
  12. Tax credits up to $1,500 for energy-efficient home improvements
  13. California dependent credit decreased (translation: taxpayers with child dependents may see their state income taxes go up)