Every year, the IRS revises the tax code, so it pays to keep abreast of the new tax benefits. There are four tax benefits this year that people may overlook, they are; energy credits, education credits, new vehicle deductions, and new home buyer credits. These are some of the credits that are available to qualified taxpayers in 2009. They include the energy credit, the education credit, a deduction for new vehicle buyers and a nice credit for first time home buyers. Home buyers that haven't owned a home within three years also qualify for this credit.

The first benefit is the the energy credit. This credit encourages people to make their homes more energy efficient with updated air conditioning and heating units, better insulation, and newer, more efficient exterior windows. With these updates, taxpayer can deduct 30% of their cost up to $1500.00. Also, beginning this year, the 30% cap is eliminated for certain alternative equipment such as; solar water heaters, geothermal pumps, and small wind turbines.

The next benefit is the education credit. There are two main ones that qualified students may take advantage of; the Hope credit and the Lifelong Learning credit. They each have different qualifications, but basically the Hope credit is designed for students in their first and second year of college and the Lifelong Learning credit is available to any student. In addition, student loan interest is deductible and tax free treatment of a canceled student loan and student loan repayment assistance are both options.

Third, due to the large increase in taxes for vehicles this year, the IRS is offering a deduction for the state, local and excise taxes for new vehicles bought between February 16th, 2009 and January 1st, 2010. This pertains to any passenger automobile, light truck, or motorcycle. Last, the credit for new home buyers is very beneficial for qualified taxpayers. If a new home is purchased before December 1st, 2009, depending on the purchase price and income, taxpayers can get a credit of up to $8000.00 on their tax return.

Each of these tax benefits have certain rules and restrictions, but most lower to middle income people can qualify. Look below for more information on these great tax benefits!