Who likes doing their income tax return? And worse yet overpaying taxes! When we do our own tax return without proper knowledge or outside assistance, we will likely do it wrong. Even with the simplest tax return we could easily overlook many legitimate tax deductions and short-change ourselves of large tax refund checks.

Did you know that for 2008, there are many income tax deductions and
credits related to mortgage relief, hurricane and other disaster relief, IRA investments, energy tax credits, child tax credits, education credits, car and truck expenses, retirement savings credits, personal deductions, plus dozens more, that could result in thousands of dollars in income tax refunds to you?



Here is a brief summary of some of them:

Recovery Rebate Credit
This is a special federal income tax credit for 2008 only. The credit is available for people who did not apply for the economic stimulus rebate in 2007. The recovery rebate credit is also available for people who's rebate is higher when calculated using their 2008 financial information.

Additional Standard Deduction for Homeowners
For 2008 only, if you owned your own home, you are entitled to an additional standard deduction of $500 (or $1,000 for married couples filing jointly). This will benefit homeowners who don't have enough income tax deductions to itemize but who paid property tax in 2008 on their personal residence.

First Time Home Buyer Tax Credit
There's a new, refundable tax credit of up to $7,500 for the purchase of a primary residence. The credit is available to first-time home-buyers. The credit is available for homes purchased after April 9, 2008, and before July 1, 2009. Unlike other credits, the home-buyer credit must be repaid over 15 years.

Deductible Mortgage Insurance Premiums
Mortgage insurance premiums are now deductible as part of the mortgage interest deduction, but for four years only. This income tax deduction began at the start of 2007 and will expire at the end of 2010 (unless Congress extends the deduction).

Tax Relief for Foreclosures and Mortgage Restructuring
People who have lost their homes through foreclosure or who have restructured their mortgage loans may qualify for income tax relief. Normally, debts that are canceled by a lender are considered taxable income. But a change in the tax law makes mortgages on a main home exempt from the tax on canceled debts.

Deductions For Using Your Car For Business Purposes
Did you know that for 2008, the standard mileage rate for the cost of operating your car for business use is 50.5 cents per mile for the period January 1 through June 30, 2008, and 58.5 per mile for the period July 1 through December 31, 2008.

Capital Gain Tax Rate Reduced.
The 5% maximum tax rate on qualified dividends and net capital gain (the excess of net long-term capital gain over net short-term capital loss) is reduced to 0%.

Commonly overlooked tax deductions - may include state sales taxes, reinvested dividends, out-of-pocket charitable contributions, student loan interest paid by your parents, moving expense to take first job, military reservists' travel expenses, state tax on income in respect of a decedent, re-financing points, jury pay paid to employer

Millions of people will overlook these tax credits and deductions on their tax forms that could add up to huge income tax refunds Will you be one of them? Stop giving the IRS thousands of dollars of your hard-earned income

This recession will play havoc with peoples lives and finances and in these tough economic times we must keep every penny that is ours. Educate yourself and claim every income tax deduction you are entitled to. Get thousands back on your next income tax refund check.

Tax filing time is fast approaching. It's time to maximize your income tax refund. It's time to get back what's yours!

Author: Art Lewis

About the author:
Art Lewis is a semi-retired business consultant. He now provides useful information and guidance for free on a variety of topics, gained from over 35 years of experience. If you have enjoyed reading this article and would like to learn more about how to maximize your 2008 income tax refund, visit Tax Refunds


Article source: Free Taxes Articles.