More tax breaks for homeowners

It's Valentine's weekend, and much of the country is under snow. But tax season is here.

This year, many of the tax breaks offered have to do with homeownership, and many homeowners are already filing to take advantage of tax credits they qualify for.

"February is a busy filing month for sure," said Dan Boone, spokesman for the Internal Revenue Service. "Folks assume that April is the busiest month. April is busy, but February is about equal."

Taxpayers "want their refund. I think with the economic downturn, people are anxious to get that refund faster."

The IRS is offering help for taxpayers who had a tough financial year in 2009. Check out "The 'What Ifs' of an Economic Downturn" page at irs.gov.

The IRS offers a number of tax breaks you may already know about, but the American Recovery and Reinvestment Act of 2009 increased the list of credits and deductions allowed. Here are some of the key provisions of the Recovery Act that affect homeowners:

First-time homebuyer credit. If you purchased a main home in 2009, you may qualify for a tax credit of up to $8,000 as long as you have not owned a home in the last three years. This credit was recently extended through April 30 and expanded to include a $6,500 maximum credit for "long-time" homeowners. Income limits apply, but Boone said the homeowners taking the credit do not necessarily have to sell their previous home to claim the credit. That means the purchaser could move into the new home and keep the previous home as an investment property, he said.

Energy-efficient home improvements. If you installed insulation, new windows or exterior doors or a new heating and cooling system in 2009 in your main home, you may be eligible for a tax credit. The credit is a maximum of $1,500 for certain improvements made in 2009 and 2010 combined. If you installed solar, geothermal or wind turbine equipment, you may be able to claim up to 30 percent of the cost as a tax credit.

Real estate taxes. State and local real estate taxes you paid may be deducted on your return. Individuals may deduct up to $500, married couples up to $1,000. You do not have to itemize deductions to qualify.

For information about other tax credits and deductions, visit irs.gov or call the IRS toll-free at 1-800-829-1040.