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2009 Tax Law Changes Page 2

 

AMT ALLOWED CREDITS
 
For 2009, the following non-refundable credits are allowed to reduce regular tax and Alternative Minimum Tax.
            -Adoption Credit
            -Hybrid Vehicle Credit
            -Dependent Care Credit
            -Child Tax Credit
            -Education Credits
            -Elderly or Disabled Credit
            -Mortgage Interest Credit
            -Personal Property Energy Credit
            -Plug-In Electric Vehicle Credit
            -Residential Energy Credit
            -Retirement Savings Credit
 
AMT Exemption
 
For 2009, the AMT Exemption amounts are…
 
Single
$46,700
Head Of Household
$46,700
Married Filing Joint
$70,950
Married Filing Separate
$35,475
 
 
AMT Privacy Bond Interest
 
Tax-Exempt interest on private activity bonds are not subject to AMT if they were issued in 2009 and 2010.
 
 
Additional Child Tax Credit
 
The earned income threshold for receiving this refundable credit has been reduced to $3,000. That means that the taxpayer will have a refundable credit to the extent of 15% of their earned income over $3,000.
 
 
Child Tax Credit
 
In order to claim this credit, the taxpayer must be allowed to claim a dependent exemption for this child.
 
 
Earned Income Tax Credit
 
EIC percentage by 45% and a taxpayer can now claim up to three children instead of two. See the previous table for details.
 
 
American Opportunity Credit
 
This new credit is to take the place of existing Hope Credit for tax years 2009 and 2010. It will make education credits available to a broader range of taxpayers, including many with higher incomes and those who have no tax liability. It also allows you to claim the expenses of required course materials as qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. The maximum amount of the credit is $2,500, and your AGI must be less than $90,000 ($180,000 if filing a joint return).
 
Remember, the Hope credit is still available.  However, you must have attended school in a mid-west disaster area.
 
 
Qualified Tuition Programs and ESA- Eligible Expenses
 
You can now take money from an ESA and use toward the purchase of a computer, Internet access, and other related expenses.
 

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