For the years 2009 and 2010, there is a $400 tax credit for singles and $800 for married filing jointly. This means that your tax liability for the year 2009 will be reduced by this amount and, as a result, for the remainder of this year you would see your take home monthly pay go up by $40 (for singles) or $80 (for married couples). This bill is designed to help middle and low income families get more money in their pockets. As a result, this tax credit starts phasing out at an adjusted gross income of $70,000 for singles and $140,000 for married couples.
During 2009 and 2010, parents/college students will get a relief in paying tuition and other related expenses. There is a tax credit of up to $2,500 for individuals attending college in the cost of tuition and other expenses for each year per student. However, the student needs to spend at least $4,000 in a full year to get this credit. You still have to pay the required bills to the college or university, but your tax liability will be reduced by this amount when you file taxes. There is a phaseout for this credit for taxpayers with an adjusted gross income of $80,000 for singles and $160,000 for married filing jointly. But 40% of this tax credit is refundable ( i.e. if you did not have any income or did not have to pay taxes, you will still get a refund of up to $1,000).
If you have been procrastinating over replacing your heating or air conditioning system, or making your windows more energy efficient, now may be a great opportunity to do that. If you install energy efficient windows, insulation etc in your home, you will receive nearly a third (30%) of the cost, up to $1,500 paid by Federal government in tax credits. This tax credit limit is for combined qualifying expense during 2009 and 2010. This means that if you install energy efficient appliances/windows for $5,000, after receiving this credit your next cost will be $3,500. Note that at the time of installation you will have to pay the amount in full. The tax credit will come when you file your taxes. Earlier this tax credit was for 10% of qualifying expense capping at $500. 
Renewable energy systems ( e.g. solar, wind, and geothermal systems ) also qualify for 30% in tax credit. There is no upper limit on this qualifying expense through 2016. This is a great way to improve our environment. Your state may give additional tax credit on top of federal tax credit. So, if a state offers another 20% tax credit, and you install a solar energy system costing $30,000, then your after tax cost would be $15,000. To learn about federal and state tax incentives for renewable energy and energy-efficient upgrades, check the following websites. Also verify the tax credit applicability of the product brand that you install. Energy Star and Energy Tax Incentives have some good resources to check.
