Tax incentives for individuals who are saving or paying for higher education

There are a variety of tax incentives for those who are saving for higher education. In addition, there are also tax incentives for those who are currently paying their education expenses and for those who are paying their student loans. Hope and Lifetime credits are available to those who are enrolled in a qualified institution. You can only pick one of the two- either Hope or Lifetime. In addition, an individual can also qualify to claim a tuition deduction of up to $4K for qualified education expenses. For those individuals who are finished with school and currently repaying their student loans, the interest on a qualified student loan may qualify as a deduction subject to certain provisions

Additional tax breaks for small businesses

The government responded to the ailing economy for small businesses. There are additional tax breaks relating to capital expenditures. Small businesses may qualify to deduct up to $250K for new machinery, equipment, vehicles, furnitures, and other qualifying products that is place in service during 2009. The bonus depreciation has also been extended for 2009 returns.

Federal law provides tax benefits for commuters who ride their bicycle to work

The federal government is responding as part of the Energy Act in 2009, to provide tax benefits for commuters who ride their bicycle to work. If your employer offers this benefit, you can receive $20/month for each month you use your bicycle as your primary source of transportation to work so long as you do not accept any other transit benefit. The difference between this tax benefit compared to the normal transit/parking benefits is that is is not a pre-tax benefit; rather, the $20 received is an employer paid benefit.

$8K First-time home buyer tax credit

First-time homebuyers in 2009 may qualify for the $8,000 tax credit that was proposed as part of the Govt stimulus plan. This is different from the 2008 $7,500 tax credit which had to be paid back over the course of 15 years.

Unemployment tax benefits

Unemployment benefits for the first $2,400 received in 2009, can be excluded from income.

Tax breaks for new car purchases

There are additional tax breaks for taxpayers this year. With the dreadful financial markets, the IRS has responded to stimulate consumer spending. The IRS has allowed taxpayers to be entitled to tax breaks for new car purchases on their 2009 returns. In addition, for states that do not have sales tax, there are tax breaks for those states as well.

Gamblers are not a sure bet for tax purposes

Can a gambler claim business activity for tax purposes? Maintain excellent records, be able to prove that's the trade of business and be ready.