For the last several years you have had the choice of using the Hope Education Credit, the Lifetime Learning Credit, or the Tuition and Fees Deduction to help defray higher education expenses.tn_educationFor 2009, the new American Opportunity Credit will replace the Hope Credit for most taxpayers. The new credit has several advantages over the Hope Credit.

By now, you have probably heard that the $8,000 first-time home buyer tax credit has been extended until July 1, 2010. You also probably heard about the new $6,500 tax credit towards a home purchase for those who have lived in their existing homes five out of the last eight years. You may not be aware, however, of some of these details around these programs.

If you owe more than $1,000 on your federal tax return; $500 on your Ohio tax return; or $100 on your city tax return, you will be hit with an under payment penalty.

If you use your car or truck in your job or business, and are not reimbursed for the expenses, you probably know you are entitled to take a mileage deduction for the business miles that you drive. The 2009 Business mileage deduction is 55¢ per mile. You may not be aware, however, there are other possible mileage deductions as well.

What every employer and potential worker needs to know about the Employee vs. Independent Contractor relationship. Employers will be biased to treat a worker as an Independent Contractor as a means to avoid payroll taxes (FICA, Medicare, Workers Compensation, Unemployment Taxes, etc.). As an Independent Contractor, the employer can also exclude them from health care and retirement plan benefits.

You may know when to hold ‘em and when to fold ‘em but do you how and when to report ‘em? Here are the tax rules.