You May Benefit From Filing Form 1040A or 1040 in 2009(p4)

Due to the following tax law changes for 2009, you may benefit from filing Form 1040A or 1040, even if you normally file Form 1040EZ. See the instructions for Form 1040A or 1040, as applicable.

The maximum Hope education credit has increased to $2,500 for most taxpayers. The increased credit is now called the American opportunity credit. Part of the credit is now refundable for most taxpayers. See the instructions for Form 1040A or 1040.

If you bought a new motor vehicle after February 16, 2009, you may be able to deduct any state or local sales or excise taxes on the purchase. In states without a sales tax, you may be able to deduct certain other taxes or fees instead. See the instructions for Form 1040A or 1040. However, if you itemize, see the instructions for Form 1040, Schedule A.

The credit increases to as much as $8,000 ($4,000 if married filing separately) for a home bought after 2008 and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010). You can choose to claim the credit on your 2009 return for a home you bought in 2010 that qualifies for the credit. See the instructions for Form 5405 for details. You must also use Form 5405 to repay any credit you claimed in 2008 if you sold the home in 2009 or the home ceased to be your main home in 2009. Form 5405 must be filed with Form 1040.

You may be able to take this credit for qualifying energy savings items for your home placed in service in 2009. See the instructions for Form 1040.

The residential energy efficient property credit has increased for 2009. See the instructions for Form 1040.

You may be able to take a credit for:

• A plug-in electric drive motor vehicle placed in service in 2009,
• A plug-in electric vehicle bought after February 17, 2009, or
• Conversion of a vehicle to a plug-in electric drive motor vehicle placed in service after February 17, 2009.

See the instructions for Form 1040.