QuickTips Index

First-Time Homebuyer Tax Credit
There's a new, refundable tax credit of up to $7,500 for the purchasing a primary residence. The credit is available to first-time homebuyers who purchase a primary residence after April 9, 2008, and before May 1, 2010.

Adoption Tax Credit
You qualify for the adoption tax credit if you adopted a child and paid out-of-pocket expenses relating to the adoption.

Standard Deduction
Taxpayers can opt to take a standard deduction (a flat dollar amount that reduces taxable income) or itemize their deductions instead. The standard deduction amount varies by a person's filing status, age, and whether they are blind. Starting with tax year 2009, people may need to use Schedule L to list various additions to their standard deduction.

Education Credits
You can reduce your taxes by claiming a tax credit for education expenses. Learn about the Hope Credit, the Lifetime Learning Credit, and other information for Form 8863.

American Opportunity Tax Credit
The American Opportunity Tax Credit provides up to $2,500 for people pursuing undergraduate education. Replacing and expanding on former the Hope credit, the American Opportunity credit is scheduled to be effective for the years 2009 and 2010 only.

Sales Tax Deduction
Sales tax may be a deductible against your federal income taxes. This is an itemized deduction and is claimed on Schedule A. The sales tax deduction is available only for the years 2005 through 2009. For 2010 and later, the sales tax deduction will go away unless Congress extends this particular tax break.

Tuition & Fees Deduction
If you took college classes, you can take a federal tax deduction for the cost of tuition and school fees.

Vehicle Sales Tax Deduction
A one-year-only deduction for 2009, individuals who purchase a new vehicle (including motor homes) can deduct sales tax or excise taxes, even if they don't itemize. The deduction is limited to the sales or excise tax applicable to the first $49,500 in the vehicles purchase price, and the deduction phases out at an adjusted gross income of $125,000 (or $250,000 for joint filers).

Additional Standard Deduction Amount for Property Taxes
The Housing Assistance Tax Act allows homeowners to claim an additional standard deduction for property tax if the taxpayer does not itemize. The additional amount is limited to $500 or $1,000 for joint filers.

Child Tax Credit
If you have children, you qualify for the Child Tax Credit. Find out how to fill out the child tax credit worksheet and if you need to file IRS Form 8901.

IRA Deduction
If you contributed to a traditional individual retirement account (IRA), you can take an above-the-line tax deduction for your contribution on Form 1040. Your deduction reduces your taxable income dollar-for-dollar.

Student Loan Interest
You can claim up to $2,500 of student loan interest you paid as an above-the-line tax deduction on Form 1040.

Retirement Savings Contribution Credit
If you contribute to a retirement plan, you may qualify for the Retirement Savings Tax Credit. How to fill out IRS Form 8880.

Credit for Child Care & Dependent Care Expenses
The Child & Dependent Care Tax Credit reduces your taxes by providing a tax credit for money you spend on day care and child care services. Find out how to qualify for the Child and Dependent Care Tax Credit.

Earned Income Tax Credit
The earned income credit is a refundable tax credit, which means the EIC lowers your taxes and gives you a bigger refund. The refund is available to low income taxpayers who have wages. The qualifications depend on the level of "earned income" and how many dependents you support.

Mortgage Insurance Premium Tax Deduction
Mortgage insurance premiums may be tax deductible. To qualify, the insurance policy must be for home acquisition debt on a first or second home. This itemized tax deduction is valid for the years 2007 through 2010.

Energy Tax Credits
Summary of federal tax credits available for homeowners who purchase energy-efficient equipment. More information about the Residential Energy Credits.

Car and Truck Expenses
Car and truck expenses can be tax-deductible if you drive your car for business, medical, moving, or charitable purposes. Learn more about what expenses are deductible, and what records to keep, and how to report this on your tax return.

Other Tax Credits
How to fill out Form 1040 Lines 54 and 55 to claim other tax credits.

Credit for the Elderly or Disabled
If you are age 65 or older, or if you are disabled, you can reduce your taxes with the tax credit for the elderly or the disabled. How to fill out Schedule R.

Early Withdrawal Penalty Deduction
If you incurred a penalty for early withdrawal of your certificate of deposit at a bank, you can deduct that penalty as a tax deduction on Form 1040.

Self-Employment Health Insurance Deduction
You can deduct the full cost of health insurance you purchase for yourself, your spouse, and/or your dependents. You must be self-employed, and you must not be eligible to participate in a group health plan.

Casualty & Theft Losses
Losses incurred because of a casualty, disaster, or theft may be tax-deductible. Casualty and theft losses are reported on Form 4684 and Form 1040 Schedule A.

Tuition & Fees Deduction
If you took college classes in 2004, you can deduct cost of tuition and school fees on 1040 line 27.

IRA Deduction
If you contributed to a traditional IRA for 2004, you can take an above-the-line tax deduction for your contribution. Your deduction reduces your taxable income dollar-for-dollar.

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