Government issues new tax breaks

March 22, 2010 5:04:55 AM PDT
2009 was a tough economic year so the government hopes to ease your pain with some new or expanded tax breaks.

Most people know about the $8,000 credit for first time home buyers, but now there's also a home buyer's credit for people who've already owned. Here's how it works: if you lived in the same house for the last five consecutive years or more then bought another one and moved, you could be eligible for a $6,500 credit.

Another big money change is the home energy credit.

That's been raised to up to $1,500.

For college students, the Hope Credit has changed names; it's now the American Opportunity Credit.

And along with the name change comes more money.

The credit once limited to $1,800 is now $2,500!

Plus, don't forget charitable deductions.

There are also deductions for mileage and donated clothing or goods.

One often forgotten deduction is the $500 real estate tax.

This is good for people who don't itemize.

LINK: Oops! Errors to Avoid at Tax Time

LINK: More Tax Tips