In 2009, dependent children (up to age 18, or age 23 if a full time student) with investment income exceeding $1,900 will be subject to the Kiddie Tax. This means the income will be taxed at the parent’s highest marginal tax rate.

If you are required to make a fourth quarter estimated state or local (city) tax payment you have until January 15, 2010 to make your payment. However, if you make the payment now you may be able to take the tax deduction on your 2009 federal tax return instead of waiting until 2010 to take the deduction.

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.