Monday, January 25, 2010

7:29 PM


Tax preparers have already seen quite a few customers this tax season, and the IRS opened up its site for e-filing mid-January.

We met up with a local tax preparer to find out more about new tax breaks.

When you go to file your taxes there may be some new tax breaks you aren't aware of but are eligible for, making your tax refund larger than you had originally hoped.

Many are already pouring into places like H&R Block searching for good news.

"A lot of these people, particularly in today's economy, they've had their hours cut back," said Doug Schneider, a tax preparer with H&R Block. "They've lost some of their jobs. Whatever they can get from Uncle Sam they really deserve."

This year an education tax break called the HOPE Credit has changed for the better.

"It was for freshmen and sophomores, and went up to $2,000," said Schneider. "Now, it's for all four years, and it's up to $2,500. Big change, a lot more money."

And the Earned Income Credit is different as well.

"The Earned Income Credit is now for three children, before it was for two, and it also has gone up so there's not only been a change in how many children can be taken but also how much money you can get per child," said Schneider.

Plus, for those on unemployment, a new tax break has come your way.

"The first $2400 of unemployment are non-taxable this year," said Schneider. "That's a big change, but Kentucky will still be taxable."

Be sure when filing your taxes to see if you are eligible for the Making Work Pay Credit.

"They're going to get back either the $400 or awful close to it," said Schneider. "That's a very, very nice find for most people. They don't expect that money."

There's also a new tax break for anyone who has recently installed alternative energy sources, such as solar power.

Schneider says many may wait until it gets closer to the deadline because they are worried about owing money to the IRS.

He adds if you do file early on and find out you owe, the money isn't due until the April 15 deadline.

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