Tax Time!

Yes we are approaching spring time and in the financial world it means... drumroll... tax returns! Not usually the most exciting thing that happens all year but if you are informed about some of your claims you can save yourself a lot of money!

My best example of savings in 2010 are for the the tax payers, who were first time buyers or buyers of a new home, as their primary house in which they live, are receiving a tax credit for up to less then 5% of their purchase price not to exceed $10,000! Tax payers have to apply for the credit in equal amounts over the 3 successive tax years beginning in the year they purchased their home. That means they are receiving up to a $3,333 credit per year just from buying their first home.

This example of course is not to say to run out to buy your first home- as those come with a lot of their own expenses- but be aware of your tax credits! Ask your accountant or look at your state's website. Here in CA, find out information here: www.ftb.ca.gov.