Tax Tips & Calculators

Tax Tip

The chart below shows the status of items that were scheduled to expire for the 2008 tax year. Most have been extended.

Items Affecting Individuals	Status
AMT patch — Increased exemptions and allowance of nonrefundable personal credits	Modified and extended through 2008
Nonbusiness energy property credit for up to $500 of home improvement costs	NOT extended for 2008. Extended for 2009 only.
$250 Educator Expense Deduction ("Teacher's Deduction")	Extended through 2009
Tuition and Fees Deduction	Extended through 2009
Deduction for state and local sales tax instead of state and local income tax	Extended through 2009
Tax-free distributions of up to $100,000 for IRA funds contributed to charities	Extended through 2009
Nonbusiness energy property credit for solar and fuel cell energy (expanded to include small wind energy property and geothermal pumps)	Extended through 2016
Credit for electricity produced from certain renewable resources	Extended through 2008
Reduced rates for capital gains and qualified dividends	Extended through 2010
Deduction for mortgage insurance premiums paid on a qualified residence	Extended through 2010

Items Affecting Businesses	Status
Credit for contractors who build new, energy-efficient homes	Extended through 2009
Deduction for energy-efficient commercial buildings	Extended through 2013
Credit for making an equity investment in an eligible "community development entity" (New Markets Tax Credit)	Extended through 2008 and modified to allow investment in non-metropolitan counties
Increased Section 179 deduction and phaseout threshold ($100,000/$400,000 for 2007) adjusted for inflation; also increased for 2008 only under the Economic Stimulus Act of 2008 ($250,000/$800,000)	Extended through 2010

Items Affecting Military Servicemembers	Status
Election to treat nontaxable combat pay as earned income for Earned Income Credit purposes	Made permanent

Questions about which tax benefits you're qualified to receive? Contact an H&R Block Tax Professional.

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