Why are some of you getting bigger refunds?
After receiving approximately 69 million individual returns, the IRS reports that the average refund is $3,036. That's up almost 9% over last year. But what are the reasons?
The IRS commissioner says it's mostly due to last year's American Recovery and Reinvestment Act (ARRA). Vice President Joe Biden also agrees and urges taxpayers to be diligent in getting every refund dollar they deserve to get.
Tax professionals differ, saying that there are more reasons. We are in a recession, so people are earning less money and so they owe less. Also, the housing credit is getting more use.
The stimulus package has also invigorated the need for tax preparers and accountants to help clients get all the possible tax breaks.
Here are a few available credits this year:
- ARRA tax credit fof $400 per taxpayer, or $800 for married couples
- Credits were expanded for low- to middle-income families with children.
- For those collecting unemployment, the first $2,400 was tax-free in 2009.
- College expense credits up to $2,500 in tax savings
- Students with 529 plans now can use these plans to purchase computer technology
- Up to $8,000 credit for First-time home buyers.
- Sales tax deductions available for new vehicles.
- Up to $1,500 in credits for energy efficient improvements to your home.
