U.S. Congresswoman Lois Capps (D-Santa Barbara) is encouraging her constituents to take full advantage of tax cuts created by the American Recovery and Reinvestment Act. Here are some of the new tax credits available:
The Making Work Pay tax credit, a tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks.
Tax credits for college expenses of up to $2,500 under the American Opportunity Credit, as well as enhanced benefits under hundreds of college savings plans.
The homebuyers tax credit, which gives a tax credit of up to $8,000 for first-time homebuyers and up to $6,500 for upgrade homebuyers. The credit is for homes under contract by April 30, 2010 and purchased by June 30, 2010.
Tax credits for energy efficient renovations. Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.
This article appears in Apr 8-15, 2010.
