Stimulus

Staff Reports
by Staff Reports

 

As part of the economic stimulus plan and American Recovery and Reinvestment Act, $787 billion in stimulus payments are given to Americans to help rebuild the economy.

Here are new tax breaks to know about as you head into tax day.  Save money with stimulus provisions, tax credits and deductions.

You can deduct Haitian relief donations from 2010 on your 2009 tax return. Cash donations made to the Haiti earthquake relief efforts are allowed to be deducted on your 2009 return. That being said, donations had to have been made between January 12, 2010 and February 28, 2010.

There are standard deductions for those who don’t itemize. Some taxpayers may qualify for additional standard deduction amounts on top of what the IRS considers its “regular standard deduction.” For instance, you can claim an additional deduction of $500 ($1k if married filing jointly) for local and state property taxes. This deduction cannot exceed the amount of taxes that you actually paid.

Deduct job search expenses. As you know, unemployment rates hit an all time high during 2009. This led many people to take on job search expenses. If you itemize your deductions you may be able to claim these expenses and effectively reduce your tax liability.

Do you qualify for any of these little known tax breaks?