You May be Eligible for a Bigger Tax Refund
The Internal Revenue Service has come out with new tax laws that will help families receive more of their tax withholdings when they file their federal income tax return for 2008. These new tax laws, passed by congress, were put into place to help taxpayers overcome the economic slump.
Recovery Rebate Credit: The Recovery Rebate Credit is a one-time benefit for taxpayers who were not eligible for the first economic stimulus check distributed in 2008. Since the stimulus check was based on your 2007 tax return, any changes in 2008 may get you more money.
Alternative Minimum Tax: The Alternative Minimum Tax has been a thorn in the side of the American middle class for years. This tax came about with The Tax Reform Act of 1969. This tax was initially set up to ensure that some wealthier tax payers did not use every possible deduction in order to get out of paying taxes. The problem is that it was set to 1969 wages so every year congress has to increase the exemption amount in order for the tax not to affect the middle class.
First Time Homebuyer Credit: Anyone who bought a house between April 9, 2008 and June 30, 2009 may be eligible for up to $7,500. This is an interest free loan from the government. Homebuyers have to pay back the money within fifteen years but it will only cost them $500 per year.
Midwestern Disaster Tax Relief: More relief is pouring into the states of Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin. If you live in one of the counties that was declared a disaster area due to severe storms, tornadoes, or flooding you may be eligible for an increase in the housing credit. People in these areas can also expect a decrease in restrictions on deductions
