4 New Tax Deductions and Credits For a Bigger Refund

As a lovely, law-abiding citizen, you pay your taxes. But as someone who's savvy, you certainly don't want to part with more money than is necessary. There are a handful of new tax deductions and credits that have been introduced to give you a bigger refund (which the government hopes you'll use to stimulate the economy). Find out four ways to pocket more of your money this tax season.

• American Opportunity Credit - As long as you earn less than $80,000 or $160,000 as a married couple filing jointly, students (grad school included) are eligible for the American Opportunity credit of up to $2,500 a year for 2009 or 2010 college tuition and other expenses.
• Homebuyer Credit - The government designed the homebuyer credit as an incentive to get people excited about entering the real estate market. First-time homebuyers can receive up to $8,000 for buying their homes by April 30, 2010, and homeowners who have lived in a home for five years but are buying a new house may receive up to $6,500.
• Deduct New Car Taxes - 2009 was a bad year for the auto industry, and the government reacted by stating that state and local taxes on new cars purchased between Feb. 27, 2009, and Dec. 31, 2009, would be deductible.
• Residential Energy Property Credit - Updating your home with energy efficient products does good for the environment, and with the Residential Energy Property credit, you could also be doing good for your tax refund. You may claim up to 30 percent of improvement costs (maximum $1,500). Check out Energy Star to find out which energy related upgrades qualify.