The IRS recently issued a news release reminding taxpayers to take advantage of the tax breaks provided in the American Recovery and Reinvestment Act of 2009, the stimulus law passed earlier this year.
Among the tax benefits that are available for a limited time:
- First-time homebuyer credit of up to $8,000 for homes purchased before December 1, 2009.
- Deduction for state and local sales and excise taxes paid on the purchase of a new car, light truck, motor home, or motorcycle. No limit on the number of vehicles you may buy, but the deduction per vehicle is limited to tax on up to $49,500 of the purchase price. Higher-income taxpayers won’t qualify for the deduction, and the deduction ends after 2009.
- Credit for energy-efficient home improvements of up to $1,500 for improvements done in 2009 and 2010.
- American opportunity tax credit of up to $2,500 for qualifying higher education expenses for 2009 and 2010.
The IRS is so concerned that taxpayers will not utilize these tax breaks that it has also posted a video to YouTube and an iTunes podcast with information about these tax breaks.