The Florida Home Owner

The FIRST-TIME HOMEBUYER’s TAX CREDIT of up to $8,000 has been extended, so eligible taxpayers can now claim the credit as long as they purchase a home or are in contract by April 30 (they have until June 30 to close). For those looking to move up or downsize, existing homeowners may qualify for a new tax credit of up to $6,500 — but they must purchase a new home, or sign a sales contract, between Nov. 7 and April 30.

The credit can be claimed for the year before the purchase. So if you buy a home in 2010, you can still claim the credit on your 2009 return, Mr. Scharin said. But if you do not close on the purchase by tax day, you may need to get an extension or file an amended return later.

HOME IMPROVEMENTS If you made “green” improvements to your primary home this year, you may be eligible for a residential energy property credit, which is capped at 30 percent of the price of certain qualifying improvements, like energy-efficient windows and doors to heating systems, according to CCH. The credit is available for 2009 and 2010, up to a combined maximum of $1,500.

529S About 34 states and the District of Columbia offer either deductions or credits on contributions to 529 college savings plans — the exact amounts are set by each government. If you live in one of those places, you need to contribute by the end of the year (a small number of plans have an April 15 deadline). “Since contributions are gifts, many people limit their annual contributions to how much they can squeeze within the gift tax annual exclusion, which is $13,000 this year,” said Joseph Hurley, founder of SavingforCollege.com.

Have a safe and Happy Holiday Season and may all your dreams and wishes come to reality in 2010!!