Wednesday, March 24, 2010

Perlmutter Highlights Important Tax Cuts for Coloradans

Average Tax Refunds for 2009 already up 10%

Washington, DC – Today, Rep. Ed Perlmutter (CO-07) encouraged all Coloradans in the 7th Congressional District to take advantage of numerous tax cuts available as a result of the Recovery Act. With only half of taxpayers having filed thus far, tax refunds are already up nearly 10% from last year – thanks to a broad array of tax cuts in the Recovery Act.

“Most people don’t realize that tax cuts are the biggest individual piece of the Recovery Act,” said Perlmutter. “Under the Recovery Act, 95% of working Americans will receive one of the largest tax cuts in history. As people file their 2009 income taxes, they may qualify for a series of other generous tax cuts – for example, saving money for attending college, making energy-saving home improvements, purchasing a home for the first time, or buying a new car. I encourage all the residents of the 7th Congressional District to take advantage of these and other tax cuts as they are filing their 2009 taxes over the coming weeks.”

Last week, Perlmutter held tax preparation assistance workshops throughout the district in Brighton, Aurora and Lakewood.

Below is a list of some of the tax credits available to claim on 2009 tax returns:

* The Making Work Pay tax credit – Ninety-five percent of working families are already receiving the Recovery Act’s Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks – and will continue to see these benefits in 2010. In the 7th CD, 258,000 families are benefiting from the Making Work Pay tax credit.

* Tax credits for college expenses – Families and students are eligible for up to $2,500 in tax savings under the American Opportunity Credit as well as enhanced benefits under 529 college savings plans, which help families and students pay for college expenses.

* The First Time Homebuyers tax credit – First time homebuyers can get a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit. As of December 9, 2009, more than 33,000 households in CO took advantage of the First Time Homebuyers tax credit.

* Tax credits for energy efficient renovations – Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.

* The vehicle sales tax deduction – Taxpayers can deduct the state and local sales taxes they paid for new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009 under the vehicle sales tax deduction.

* Expanded family tax credits – Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.

* Tax-free unemployment benefits – Thanks to the Recovery Act, individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings.

“At the beginning of 2009, our economy was in freefall, losing nearly 800,000 jobs a month, cutting into Americans’ retirement savings and freezing lending to small businesses,” said Perlmutter. “We passed the Recovery Act and were able to save and create more than two million jobs in the first year of a two-year effort. We still have a long way to go to put more Americans back to work, but we are moving in the right direction. And in the meantime, these tax cuts will ease the burden on American families who are struggling to make ends meet.”

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