As a part of American Recovery and Reinvestment Act 2009, the tax credit for non business energy property credit has been increased as a result you would be able to save a lot on tax if you take steps to save energy in your home.

1. In the new law the credit rate has been raised to 30% of total cost of the improvements that qualify.
2. Maximum limit of credit that could be claimed for years 2009 and 2010 is $1500.
3. The improvements that are qualified would be something like insulation installation, heating and air conditioning systems that are energy efficient and exterior windows that are energy efficient.
4. The products used for saving energy should be of a higher standard than specified in 2007 tax credit.
5. The improvement claimed must be a part of tax payer’s principal residence that is located in United States.
6. A certificate from the manufacturer to the tax payer assuring the standards met is necessary.

So now do you realize the importance of creating an energy efficient atmosphere that i usually advice? Act now and save most next year!!!

IRS announced today that the effect of inflation on tax rate brackets and many other tax benefits would remain unaltered or see a very slight change only in 2010.

In the past  more than three dozen tax benefits have been subjected to inflation adjustments every year. In contrast due to inflation factor being minimal, 2010 would see no or little changes in tax benefits.

Lets take a look on what’s in store for most taxpayers in the coming year:

• Personal and dependency exemption’s value would remain unaltered ay $3650.
• Deductions for head of households has increased from this year’s $8350 to $8400 although for other taxpayers like married people filing for a joint return and for singles or married individuals filing separately, the amount remains the same, $11,400 and $5700 respectively.
• The annual gift tax exemption remains the same at $13,000.
• Tax bracket thresholds would see only minor changes.

Wish to save some money on your tax? Then check if you fall under the categories mentioned below:

Are you a first time home buyer?

Taxpayers who have not bought a residential property for past three years from the date of December 1st 2009 are eligible to receive up to $8000 as an original or amended return for tax. The credit can be claimed for either 2008 or 2009.

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IRS cautions individual taxpayers to keep a check on the levels of their federal tax income in order to avoid any shock next spring. With the current fiscal year almost nearing its 3rd quarter, its high time for us to start doing the needful regarding our tax payments.

Work Pay Credit Plan has reduced the tax levels of about 120 million American families. However people who fall under specific categories are advised to check their tax levels. I would like to direct my attention towards people who hold multiple jobs, families where the couple is engaged in employment and individuals who have been certified as dependents by other pensioners  and tax payers. These people are to review their withholding.

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