Tax Credits You May Qualify For
Tax credits and benefits make up $288 billion of the $787 billion allocated by the Recovery Act. See if you might qualify for any of these tax credits:
College expenses – The American Opportunity Credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers. It also adds course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of just two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.
Energy-efficient improvements — The Residential Energy Property Credit increases the credit rate to 30 percent of the cost of improvements, such as added insulation, energy efficient exterior windows, and energy-efficient heating and air conditioning systems. The maximum credit limit is $1,500 for improvements made in 2009 and 2010. Frequently asked questions about the program are listed on the Energy Star website.
Alternate energy equipment installation – If you install solar hot water heaters, geothermal heat pumps or wind turbines at your home, you might qualify for the Residential Energy Efficient Property Credit that allows for a credit equal to 30 percent of the cost of the qualifying equipment’s installation.
Working Individuals and Families – If you make a low to moderate income and file a tax return, you could qualify for the Earned Income Tax Credit.
Parent(s) with children – If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
Working Individuals — Making Work Pay provides for a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.
We’ll be keeping you up to date on any additional tax credits and changes to those listed here.