Your Bailout May Come In Through Tax Credits

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Did you know that a misfortune such as getting laid off may yield you tax credits?  How?

Due to the newly revised recovery rebate credit, some taxpayers who did not qualify for a tax credit due their income being above or below a certain level may not qualify for this credit due to a reduction in income in 2008.

In addition to the above credit, taxpayers can look forward to more money in their pockets due to the first-time homeowner credit.  The individuals that are eligible for this credit include individuals who brought their first home between April 9, 2008 and June 30, 2009.

This credit may yield a maximum of ten percent of the purchase price or seven thousand five hundred dollars ($7,500).  If you are married, though, the maximum this credit will yield is three thousand seven hundred and fifty dollars ($3,750).

It is important to not, this credit is considered a loan. It has to be repaid over the next fifteen (15) years.  It is simple to pay the loan back, though, a taxpayer has the option to owe more taxes over the next fifteen (15) years or receive a smaller refund over that same period of time.

Another credit that has received improvement or increase is the child tax credit.  In previous years a parent was eligible for three thousand five hundred dollars ($3,500) exemption for each dependent.  Now, a parent can get an additional one thousand dollars ($1,000) per child as long as the child is under seventeen (17) at the end of 2008.

With most of these upgrades to the tax credit, there is an upgrade to non-qualification for the credit, as well.  In this case, the extra child tax credit is based on your income.  It, however, promises to make more middle income families eligible with its new widening of income brackets.

The last tax credit that received a face lift was earned income credit.  Many more taxpayers may qualify for this credit due to a job loss.

The criteria are as follows:

• A family of two (2) or more children making less than $41,646 may qualify for the credit.
• A family with one (1) child making less than $36,995 may also qualify for the credit.
• Still yet, a family with no children making less than $15,880 may qualify for the credit, as well.
• The amounts that the families qualify for are $4,828, $2,917, and $438, respectively.

For details on any of these credits, please consult an accountant.

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Originally posted 2009-04-11 05:00:45. Republished by Blog Post Promoter

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