Federal tax deadline day is just over a week away, and while it may sound hard to believe, the Internal Revenue Service wants every Iowa taxpayer to get every tax break for which they’re entitled. I.R.S. spokesman Christopher Miller says too many eligible taxpayers don’t file for the “Earned Income Tax Credit.”
Miller says, “One in four eligible don’t ask for it.” Married couples who earn just over $48,000 a year are eligible to qualify for that credit. Miller says Iowans who can use this tax credit — but don’t — are just cheating themselves. He says, “For a family of three or more children, that’s up to $5,700 and that will really make a difference if you are trying to make ends meet.”
Miller says there are several other new tax credits for 2009. They include the $8,000 first time home buyers credit and another one, if you bought a new vehicle last year. “If you bought a new car, light truck, motor home or motorcycle, you can qualify for a deduction of the state and local sales tax you paid on that vehicle.”
There are also deductions for purchasing some hybrid cars. Federal tax returns are due postmarked or e-filed on April 15th.
By Karla James