In an effort to help taxpayers during the recession, a number of tax breaks were introduced to ease matters, as well as help stimulate the economy. However, some of these tax credits will be expiring sooner than you think. The California Society of CPAs, sent to me via email, has an overview of some of the tax breaks that will soon be expiring:
- COBRA Extension Benefits: If you are eligible for this tax break, you pay only 35% of your COBRA premiums, and you receive a reimbursement of the other 65% through a tax credit. Termination of your job for COBRA benefits must take place between September 1, 2008 and February 28, 2010. So if you’re going to get fired, you better hope it happens soon.
- Real Estate Tax Credits: The $8,000 first-time home buyer tax credit has been extended until the end of April. And, if you aren’t a first-time buyer, you can take advantage of a $6,500 tax credit if you buy before the end of March 2010.
- Tax Credit for Appliances: Local tax credit programs for appliances are happening right now. But they are being done at the state level, so you will need to check with your state to see what needs to be done.
Do some research, and consider consulting with a knowledgeable tax professional in order to figure out how you can benefit from these tax breaks before they expire.
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