This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tax Changes That Could Boost Your Return

Beyond 'Clunkers'

If you buy an electric car, you can claim a credit that ranges from $2,500 to $7,500. A scaled deduction is also in place to subsidize the juice needed to recharge these vehicles. Cars running on natural gas, liquefied petroleum or 85% methanol alcohol also qualify for a variety of credits.

The current year is the last for tax breaks of up to $2,400 offered for hybrid-car purchases. The deduction was designed to expire after a carmaker sells at least 60,000 of these vehicles, meaning that incentives for models by Toyota (TM), Ford (F) and Honda (HMC) are either no longer available or being phased out. Among the brands still earning a credit: Chevrolet, Dodge, GMC, Nissan (NSNAY) and Saturn.

Making Work Pay

The Making Work Pay credit, part of the 2009 stimulus package, offered a tax break equal to 6.2% of pay, up to $400 for a single taxpayer and $800 for joint filers. It phases out as adjusted gross incomes exceed $75,000 ($150,000 for joint filers).

The credit is often overlooked because it was added to paychecks starting in April. Those who earned more than the income limit must ensure the credit wasn't incorrectly applied and pay it back if it was. Conversely, self-employed workers should calculate and claim the credit on their filings. The IRS Schedule M is needed to correct discrepancies.

Dependents

The deduction allowed for each dependent has increased by $150 to $3,650. For noncustodial parents to claim a child as a dependent, they must submit a new document, the Form 8332, instead of the traditional attachments from a divorce decree or separation agreement.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $129.62 -2.20%
FB $79.34 -1.50%
GOOG $532.32 -1.44%
TSLA $247.46 -0.11%
YHOO $42.85 -1.46%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs