Barbara Raia is looking forward to filing her taxes. She says, "I think I might be getting more back this year." That's because she can take advantage of the new Making Work Pay tax credit. If you've got a job, you're eligible for up to $400.

Lansing Liberty Tax Service Owner Janice Vondra says, "It's up to 6.2% of your earned income...up to a total of $400.00 per person....that is either the tax filer or the tax filer and their spouse. So, it's up to $400 for each individual or up to $800 for a married couple."

The first-time homebuyer tax credit is also putting more money in people's pockets. People can get back up to $8,000 if they've purchased a home for the first time. If you are eligible for that tax credit, it's important to keep in mind that you have to actually fill out the paperwork and send it in. You cannot file electronically. Vondra says if you want your return faster, you may want to do an amended return.
She says, "People might consider doing their tax return without the first-time homebuyer tax credit initially and electronically filing it. Once their refund has been paid, they may want to do an amended return for the first-time homebuyer credit since it does take quite a bit longer to process a paper return."

If you bought a new vehicle between February 16th and December 31st of 2009, you get credit for the sales tax. Vondra says that includes motorcycles and motor homes.

There's also the residential energy credit. Vondra says, "There are credits for windows that you may have replaced...roofs. It has to be a particular type of roofing material. Some sun roofs, or skylights are included in that." She says insulation, energy efficient water heaters and even housing fans are also included.

If you donated to relief efforts in Haiti, you can now deduct donations made before March 1st from your 2009 return instead of waiting. Vondra says a new law allows you to choose to deduct certain contributions of money made after January 11th and before March 1st. The new law was enacted after the 2009 forms, instructions and publications had already been printed. When preparing the 2009 return, you may complete the forms as if the contributions were made on December 31, 2009 instead of 2010. To deduct those, you must itemize deductions on Schedule A (Form 1040) or Schedule A (Form 1040NR). The contribution must be made to a qualified organization and meet all other requirements for charitable contribution deductions.

If you are eligible for the earned income tax credit this year you can claim three children. Before, Vondra says it was only two. She says, "The Earned Income Credit generally in the past has always included just two children and this year, it's gone up to three children because of the economy. They are now allowing you to file with three children."

There is also a break for some of those who can claim a standard deduction. Vondra says, "A standard deduction is if you don't itemize on your tax return, which is probably the case for the majority of people who don't own a home. You're assigned an automatic deduction on your wages that you don't have to pay taxes on. If you own a home and you don't have enough to go over the standard deduction, if you pay property taxes, they're giving you an additional credit, to help with your income that's taxable. It helps to reduce that. That's on Schedule 7 and that's called standard deductions for certain filers."

Raia says she's already got plans for her return. She says she will, "Pay off a lot of bills and I have grand kids, I would probably buy a little extra stuff for them too." She says the extra money makes the tax chore more bearable.

John Vondra says people can get $50.00 off the cost of filing their taxes at the West Saginaw and Martin Luther King location with the donation of a bag of food to the local food bank.

You may also qualify for free help in filing your taxes. Call 211 to see if you qualify. Your income has to be less than $50,000.