12 ways to cut your taxes

The bright spot of the dreary 2009 economy: savings for everyone.

1 of 12
BACKNEXT
1 . You bought a house
1 . You bought a house
Late last year, Congress extended the valuable homebuyer break beyond first-timers. So if you already owned a home but bought a new one after Nov. 6, 2009, you may be entitled to a credit worth 10% of the purchase price, up to $6,500.

Even if you buy in 2010 -- you have until April 30 to sign a contract and until June 30 to close -- you can claim the credit on your 2009 return, says Mark Luscombe, a principal analyst with tax research firm CCH. (You may need to file an extension or amended return if you sign after April 15.)

The fine print: You have to have lived in your old home for five consecutive years of the past eight. Plus, the new home must be your principal residence and must have cost $800,000 or less. Of course, first-time homebuyers also benefit, with a credit of 10% of the price up to $8,000. So if a child or someone else you know finally kicked the renting habit in 2009 -- or plans to in early 2010 -- have him or her check irs.gov for dates and income restrictions.

Income Limits (for repeat homebuyers)
Full credit up to $225,000
Partial credit up to $245,000

Potential savings: $6,500 for a repeat homebuyer on a house worth $65,000 or more


NEXT: 2. You've got a kid in college
Last updated March 26 2010: 7:15 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Savings assumed a couple filing jointly in the 28% bracket, unless otherwise noted.
More Galleries
Our biggest money highs and lows How much money do you need to feel rich? What are your biggest money mistakes? Money magazine surveyed 1,000 Americans for the answers to these and other questions. See how your answers stack up. More
How we feel about our finances Participants in an exclusive Money magazine survey reveal how they feel about their finances. Although the Great Recession may be over, they're not all that confident about their prospects for the long run. More
8 ways to cut your tax bill To keep your tax bill as low as possible this filing season, you need to stay on top of all the ways the rules have changed. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.