Nine Tax Deductions That Will Dissappear This Year

Here are the top nine ways to say your money that will only be good through the end of 2009!

1. Up to $2,400 of unemployment compensation is excluded from the gross income of the recipient, good until 12/31/09.

2. You can claim a deduction for sales or excises taxes paid on the purchase of a new vehicle (may depend on your income), good before 12/31/09.

3. If you haven't owned a home in the previous three years, you can claim a first-time home buyer credit of up to $8,000 (phased out at higher income levels) for the purchase of a principal residence. The credit can be claimed only for homes purchased before December 1, 2009. It is rumored that this credit may rise to $15,000 in 2010, but that's still just a rumor.

4. If you are covered by employer-sponsored health plans and are laid off before January 1, 2010, you can qualify for subsidized plan continuation (COBRA) coverage for up to nine months. Employers can claim a credit against employment taxes for the subsidies provided to employees.

5. For tax years beginning before 2010, teachers in grades K-12 and other eligible educators can claim an above-the-line deduction for up to $250 of their out-of-pocket expenses for books and supplies used in the classroom.

6. You can claim an additional 50% depreciation allowance for qualifying business machinery and equipment placed in service before January 1, 2010.

7. You can claim a Section 179 expensing deduction for the first $250,000 of qualifying equipment and machinery placed in service during this year. For tax years beginning after December 31, 2009, the maximum Section 179 deduction drops to $125,000.

8. Employers may claim a 20% income tax credit for qualifying differential pay paid to employees on active military duty. The credit expires for payments made after December 31, 2009.

9. Eligible contractors may claim a credit of up to $2,000 for each qualified new energy efficient home that the contractor constructs and that is acquired from the contractor for use as a residence. The credit does not apply to homes acquired after December 31, 2009.


Looking our for your best interests,

Your Tax Goddess~
Shauna~