GONZALEZ HIGHLIGHTS RECOVERY ACT TAX CUTS

FOR SAN ANTONIANS

Average Tax Refunds for 2009 already up 10%

Washington, DC – Congressman Charles Gonzalez (TX-20) is encouraging all San Antonians to take advantage of numerous tax cuts in the Recovery Act. With only half of taxpayers having filed thus far, tax refunds are already up nearly 10% from last year – thanks to a broad array of tax cuts in the Recovery Act.

“When Congress passed the American Recovery and Reinvestment Act last year, we had two primary goals: to put more money in the pockets of consumers and encourage growth that will create jobs,” said Congressman Gonzalez.  “As you file your taxes in the coming weeks, I encourage you to take advantage of the generous cuts offered by the Recovery Act that can put money back in your wallets.”

The 20^th District of Texas and across the country can claim a variety of benefits on their 2009 tax returns, including:

• The Making Work Pay tax credit – Ninety-five percent of working families are already receiving the Recovery Act’s Making Work Pay tax credit of $400 for an individual or $800 for married couples filing jointly in their 2009 paychecks – and will continue to see these benefits in 2010.  In our 20^th District, 264,000 families are benefiting from the Making Work Pay tax credit.

• Tax credits for college expenses – Families and students are eligible for up to $2,500 in tax savings under the American Opportunity Credit as well as enhanced benefits under 529 college savings plans, which help families and students pay for college expenses.

• The First Time Homebuyers tax credit – First time homebuyers can get a credit of up to $8,000 for homes purchased by April 30, 2010 under the First Time Homebuyer tax credit. In the State of Texas, 161,911 households have already taken advantage of the First Time Homebuyers tax credit.

• Tax credits for energy efficient renovations – Taxpayers are eligible for up to $1,500 in tax credits for making energy-efficient improvements to their homes, such as adding insulation and installing energy efficient windows.

• The vehicle sales tax deduction – Taxpayers can deduct the state and local sales taxes they paid for new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009 under the vehicle sales tax deduction.

• Expanded family tax credits – Moderate income families with children may be eligible for an increase in the Earned Income Tax Credit and the additional Child Tax Credit.

• Tax-free unemployment benefits – Thanks to the Recovery Act, individuals who received unemployment insurance in 2009 do not have to pay taxes on the first $2,400 of such earnings.

To find out what tax cuts you may qualify for, check the White House online tax calculator by clicking here.

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