End of the Year Finances | The Kojo Nnamdi Show

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End of the Year Finances

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Lankford's Extra Content

• Tips and Ideas for Lowering Your Tax Bill Kimberly Lankford's list of steps you can take now that can lower your tax bill next spring.

• New Tax Credits for College Loans Many parents don't realize that they may qualify for the American Opportunity Credit Act of 2009. The credit credit covers up to $2,500 as long as you spend at least $4,000 in tuition and qualified expenses (including fees, books and related course materials).

• New Credit Card Regulations The Credit Card Accountability, Responsibility and Disclosure Act of 2009 limits credit-card issuers' ability to raise rates, requires them to provide better disclosure of their rules and fees, and eliminates some misleading practices. Some provisions have already taken effect, but the bill won't be fully implemented until February, 2010.

• Open Enrollement This is an important year to review your options -- premiums and out-of-pocket costs are increasing for many plans (especially some of the most popular plans), so the policy that worked best for you last year may no longer be your best option. Open enrollment for Medicare Part D and Medicare Advantage Plans runs until December 31. Some people on employer-provided health insurance plans are also in the midst of open enrollment.

• Flex-Spending Many employers still require people to use up the money in their flexible-spending accounts by December 31 (although some can now offer an extension until mid-March), so it's a key time for people to make eye doctor's and dentist appointments to help clean out their accounts.

• Retirement-Plan Contributions Contibution limits and distribution levels are changing for 2010. Also, new rules go into effect for rolling traditional IRAs to a Roth.

• Homebuyer Tax Credits President Obama recently signed a bill extending $8,000 credits for first-time homebuyers. The credit will be available until April 2010. The bill also extended a $6,500 credit for people and families that have already owned a home. Official IRS page on Homebuyer credits

Additional Resources

• Federal Tax Credits for Consumer Energy Efficiency Information on credits from the federal government's Energy Star program. See also the IRS' Energy Tax Credit page.

• IRS.gov

• SocialSecurity.gov