With little more than a week left in 2008 the Internal Revenue Service wants to remind taxpayers to be aware of recent tax changes as well as some recently reinstated tax deductions.
“A simple review of your current tax situation may result in a bigger refund or less taxes to be paid come tax time,” said IRS Spokesperson Luis D. Garcia.
The Internal Revenue Service offers these tax tips for you to consider.
First-Time Homebuyers Tax Credit – Taxpayers who purchase a primary home between April 9, 2008 and June 30, 2009 can apply for this credit. The credit equals 10 percent of the purchase price of the home up to a maximum of $7,500. The credit must be paid back in equal payments over 15 years. First-time homebuyers are those who have not owned a home in the three years prior to a purchase.
http://www.irs.gov/newsroom/article/0,,id=186831,00.html

Real Estate Tax Deduction –There is an additional standard deduction for those who don’t or can’t itemize their tax deductions, but pay real estate taxes. The additional deduction amount is equal to the amount of real estate taxes paid up to $500 for single filers or $1,000 for joint filers. This deduction is available for tax years 2008 and 2009.

http://www.irs.gov/publications/p530/ar02.html#en_US_publink100011838
Tuition and Fees Deduction – Taxpayers may be able to deduct qualified tuition and required enrollment fees up to $4,000 for themselves, their spouse, or dependent even if they don't itemize. However, a taxpayer cannot take both the tuition and fees deduction and education credits (Hope & Lifetime Learning Credits) for the same student in the same year. Income limits and other special rules apply to each of these provisions.
http://www.irs.gov/publications/p970/index.html

Teachers’ Expense Deduction - The educator expense deduction allows teachers and other educators to deduct the out-of-pocket cost of books, supplies, equipment and software used in their classroom. Worth up to $250, the educator expense deduction is available whether or not the educator itemizes deductions on Schedule A.
http://www.irs.gov/taxtopics/tc458.html
Recovery Rebate Credit – If you did not qualify or did not receive the maximum amount for the 2008 Economic Stimulus Payment you may be entitled to claim a recovery rebate credit of up to $600 ($1,200 if married filing jointly) when you file your 2008 tax return.
http://www.irs.gov/formspubs/article/0,,id=180800,00.html

Get familiar with all the free resources IRS.gov offers –
Check out the latest tax changes on the IRS.gov website. www.irs.gov
-Use e-file to file your tax return and help ensure you don’t miss out on any tax deductions, credits and benefits.
http://www.irs.gov/efile/article/0,,id=177434,00.html
-Most taxpayers can prepare and file online for free with the safe and secure IRS Free File program.
http://www.irs.gov/efile/article/0,,id=118993,00.html
-The comprehensive tax guide for individuals, IRS Publication 17, is now downloadable from IRS.gov. “Your Federal Income Tax Guide,” contains more than 900 interactive links. http://www.irs.gov/pub/irs-pdf/p17.pdf