Tax Day is Tomorrow

Dear Friend,

If you haven't filed your taxes yet, there's still time. And this year, millions of middle-class families will find the tax burden lighter and bigger refund checks in their mailboxes. That's because the Recovery Act passed last year reduced taxes by almost $100 billion last year and by $220 billion this year. For American families, that translates into significantly lower taxes and larger tax refunds"in fact, refunds are up 10% this year.

At a time when America appeared to be on the verge of another depression, the Recovery Act invested in needed infrastructure projects across the nation, helped those hardest-hit by the recession, and kept police officers, firefighters, and teachers on the job serving our communities.

Today, as you're filing your taxes, remember that you might be eligible for these new credits and deductions:

• Making Work Pay credit: 95% of working families are receiving this credit, which means $400 less in taxes for individuals and $800 less for married couples. You've probably already seen the effects of this credit in your paycheck.
• College expenses: Families and students can claim up to $2,500 to pay for college expenses.
• First home purchase: If you have bought your first home by April 30 of this year, you can claim an $8,000 deduction. And many other homebuyers can claim a deduction, as well.
• Energy efficiency incentives: If you've made your home more energy efficient through steps like adding insulation or energy-efficient windows, you're probably already saving money on your energy bills. But now, you can also claim a $1,500 tax credit.
• New vehicle purchases: If you bought a new vehicle between February 17 and December 31 of last year, you can deduct the state and local sales taxes from your federal tax return.
• Family tax credits: If you're a moderate-income family, the Recovery Act increased your tax credits: the Earned Income Tax Credit is now $5,657, and it's now easier to claim the Child Tax Credit.
• Tax-free unemployment benefits: Unemployment benefits are usually taxable"but if you were looking for work last year, the Recovery Act made the first $2,400 in unemployment benefits tax-free.

For an easy way to see which tax benefits are available to you under the Recovery Act, check out the Tax Savings Tool at www.whitehouse.gov/recovery.

These are still the hardest times we've seen in decades, and I know we have a long way to go before our economy is fully back to health. We're making real progress, and in the meantime, I hope you'll take full advantage of these benefits this year.

Sincerely,

Mike Quigley