The American Recovery and Reinvestment Act for 2009 introduced tax credits and rebates that include an education tax credit or rebate for individuals who are paying for college tuition, people receiving unemployment compensation, buyers of new motor vehicles, and tax credits for first-time house purchase. In addition, home improvements related to energy efficiency and environmental friendly measures may also be eligible for the newly introduced tax credits for energy efficient measures.

List of Income Tax Credits and Reductions

  • $8,000. First time home buyers can be eligible for the homebuyer credit that amounts to an $8,000 refundable tax credit for home purchase.
  • $2,400. Individuals who received unemployment compensation during 2009 are eligible to omit $2,400 of the received compensation from their taxable income.
  • $2,000. Parents and students paying for college tuition and other eligible expenses under the American Opportunity Tax Credit are eligible for a full $2,000 college tuition tax credit and a 25% rebate for the next $2,000 spent on college tuition and books. A 40% rebate is also offered on the first $2,000.

Standard Deduction and Personal Exemption Tax

Tax changes for 2009 include an increase in the basic standard deductions. Here are the basic standard tax deductions for the 2009 tax return: