Taxpayers who purchase a new vehicle in 2009 may qualify for the new “Vehicle Sales & Excise Tax Deduction” that is part of the American Recovery and Reinvestment Act (ARRA) of 2009.

The Work Opportunity Tax Credit (WOTC) provides a tax credit to employers of up to 40% of “qualified first year wages” for individuals in groups with high unemployment rates or other special employment needs. If the individual is a disabled veteran, the credit can be double the standard amount and if they are a recipient [...]

Deductions and exemptions are key mechanisms for determining a taxpayer’s taxable income and, therefore, their tax liability. The IRS offered advice on dependent and exemption issues in “Tax Tips: Five Important Facts About Dependents and Exemptions (No. 2010-04), dated January 7, 2010. These points are summarized below:

Both taxpayers with disabilities and the parents of children with disabilities may qualify for a variety of tax benefits. A number of these benefits were described in “IRS Tax Tips for Disabled Taxpayers” (2010-24), dated February 4, 2010.

In “Five Tax Changes for 2009 (No. 2010-23), dated February 3, 2010, the IRS has highlighted a number of key tax law changes that will impact taxpayers. The changes are summarized below.

The American Recovery and Reinvestment Act (ARRA) of 2009 modified the tax credits originally enacted in the Energy Improvement and Extension Act (EISA) of 2008 intended to encourage individual taxpayers to invest in energy-efficient products, including plug-in electric vehicles and related conversion kits.

The IRS announced that taxpayers giving contributions to charities conducting earthquake relief work in Haiti can claim these contributions on this year’s tax return. Details are contained in IRS Newswire Issue No. IR-2010-012, dated January 25, 2010. This special Haiti tax relief provision is similar to a 2005 IRS rule that allowed taxpayers to deduct [...]