Tax Breaks, Credits, Deductions and Other Money Savers

With 2009 coming to a close, here are some tax breaks, credits and deductions you can use as well as some other facts that can help you save up.

Appliance rebates

If you’re upgrading to “green” appliances, then you should apply for the government rebate that can give you as much as $250 back. Just remember, the deadlines, amounts and method of redemption varies by state, so you’ll have to check with your local government offices.

The program has no deadline, but it operates under budget limits, so once the funding runs out, that’s it for the program. There have been some calls for adding more money to the program, though it’s still up in the air.

Car sales tax deduction

You have until Dec. 31 to finish paperwork for a tax deduction on state and local taxes related to a new car purchase. You must have bought it between Feb. 17 and Dec. 31. The deduction only works for the first $49,500 of the car’s worth. The credit phaseout begins for single people with a modified adjusted gross income of $125,000 and above, and the income level starts at $250,000 for couples.

Extension for homebuyer tax credit

There have been movements to extend the first-time homebuyer’s tax credit program that ended on November 30. With an extension in place for military personnel who have served tours of duty abroad, the idea is gaining momentum. Under the program, up to $8,000 could be received.

The gifts that keep on giving

If you’re sending donations to charities, do so by the end of December, so you can deduct it from your taxes. You can give up to $13,000 ($26,000 for couples), tax-free but subject to conditions.

Sign up on the box at the right to receive more information on tax breaks, credits and deductions that you can use.