More News for 2009

Residential Energy Property Credit

If you are considering energy efficient improvements to your existing home, you’ll be interested in the new energy legislation. Uncle Sam has increased the credit from 10 to 30 percent of the cost of all qualifying improvements, raised the maximum credit limit to $1500 for improvements made during 2009 and 2010, and eliminated the $500 lifetime cap.

The credit applies to improvements such as: insulation materials; skylights; central air conditioners; exterior windows; exterior doors; natural gas, oil, or propane furnaces; electric heat pump water heaters; and certain metal roofs.

New Law Exempts Partial Unemployment

If you were out of work and received unemployment benefits you’ll be glad to know that Uncle Sam has come to your aid. Prior to 2009, unemployment benefits were included in income and fully taxable. The new law temporarily allows unemployment recipients to exclude from income up to $2400 of benefits for 2009. Amounts exceeding the threshold will continue to be fully taxable.

New Car Sales Tax Deduction

If you purchased a new car, light truck, motor home, or motorcycle after February 17, 2009, and before January 1, 2010, you’ll be glad to know that Uncle Sam will allow you to deduct state and local sales and excise taxes paid. The deduction is limited to the portion attributable to the first $49,500 of the purchase price.

2009 Deductions and Exemptions

For 2009, the business standard mileage rate for the cost of operating your car, van, or pickup is 55 cents per mile. The standard rate for medical or moving is 24 cents per mile. And the standard mileage rate for charitable purposes is 14 cents. The standard deduction is $11,400 for married couples filing a joint return. The new rate for singles and married couples filing separately is $5700. Heads of household increased to $8350.

The personal and dependency exemptions are $3650.