Orange County Tax Help

Most people work hard each year to take advantage of all the deductions that are possible.  The goal is to cut the tax bill to the smallest possible denominator.  The more that can be saved on taxes the better.

Few tax payers know about all of the tax credits that are available to help cut the tax bill.  The best thing about the tax credits is that they are money that the government will pay and is not dependent on how much you owe.

TAX CREDITS ARE CASH IN HAND.

Buy a house if you are a first time buyer or if you have not purchased or owned a home in the last three years.  The Federal Government is trying to stimulate the housing market with the tax credits.  New home buyers are eligible to receive up to $15,000 in tax credits (10% of the purchase price of the new home).  Even better, it may be possible to get the money now by amending the 2008 return.

Get a job or just get to work.  The Federal Government is paying taxpayers to work.  Additional tax credits are available for anyone who earns an income.  Individuals are eligible for up to $400 and married couples can qualify for up to $800.  The tax credit can be added on to existing paychecks for the rest of the year or it can be taken as a lump sum on the 2009 tax returns.

Upgrade the house.  Making a home more energy efficient will make taxpayers eligible for tax credits that could equal up to 30% of the cost (up to $1,500).  The improvements could be new windows or doors, additional insulation or new roofs to name a few of the improvements that are eligible.

Deductions are great for reducing the tax bills but to really save money on taxes you need to take advantage of the tax credits that are available.