How Next Tax Credits Can Increase Your Tax Refund

By Dave Jordan, NEWS 9

OKLAHOMA CITY -- Tax season is the time of year most of us dread. Many will open your wallets and cut another check for the IRS, but some people will see an increase in their tax return, thanks to a number of new tax credits.

There are credits on everything ranging from energy to a new car purchase and tuition.

Usually, taxpayers have to do a little detective work to see what qualifies for a deduction, but in this case the legwork has already been done.

"These credits and these benefits are helping almost all of our tax customers," said Patti McKinnon with Liberty Tax Service.

One of those customers is Kristen Johnson. She got a pretty substantial refund from Uncle Sam for doing some things that previously would not have been deductible.

"I bought a new car, and I was in school all year and I just got credit for working all year," Johnson said.

Congress approved a number of tax breaks that just about all of us can benefit from. If you were like Kristen and bought a new car, you can deduct the taxes you paid on that vehicle. If you went to college, you could deduct thousands in books and tuition fees. There's even a tax credit for going to work.

"It's called the Make Work Pay Credit. We started holding less out of people's paycheck last February and they're getting a credit back on that tax return this year and it's helping them," McKinnon said.

These tax credits were buried in one of the most controversial pieces of legislation to even come out of Washington.

"There were a bunch of changes made with the American Recovery and Reinvestment Act that resulted in some higher credits, some new credits," said IRS spokesman David Stell.

At the time, Congress approved the stimulus package those tax breaks received little attention. But now, tax preparers and taxpayers are focusing on every single deduction. David Stell said many have already asked about the recently reinstated energy tax credit for homeowners.

"If you put new windows in your house, if you replace your heating and air conditioning system, if you add new exterior doors and maybe a new roof, a lot of that qualifies for that particular credit," Stell said.

Now of course, not everyone is going to get a tax refund this year, but the hope is that those who have to pay back money will get to pay less.

Learn more about the new tax credits.