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2 American Opportunity Credit For tax years beginning in 2009, taxpayers can claim a credit up to $2,500 per student; new credit modifies the existing Hope and Lifetime learning credits for tax years 2009 and 2010 Credit now includes required course materials in the list of qualifying expenses; also allows credit to be claimed for four post-secondary education years instead of two

3 American Opportunity Credit Generally, 40% of the Hope credit is now refundable credit, which means that you can receive up to $1,000 even if you owe no taxes The full credit is available to individuals whose modified AGI is $80,000 or less, or $160,000 for married couples

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5 First-Time Homebuyer’s Credit National Association of REALTORS®

6 First-Time Homebuyer’s Credit (Continued)

7 Form 5405 Draft

8 Qualified Motor Vehicle Taxes New deduction for qualified motor vehicle taxes on purchase of certain new cars, trucks, motorcycles or motor homes Can add to the standard deduction or take as an itemized deduction (if not electing sales tax deduction) Deduction is allowed against the AMT Limited to tax imposed on the first $49,500 Phased out over modified AGI range of $125,000-$135,000 ($250,000- $260,000 if married filing jointly) Applies only to purchases made after February 16, 2009, and before January 1, 2010