The old saying goes there is nothing certain but death and taxes.  Fortunately, you can survive taxes.  Taxes can be painful but they are seldom fatal.  Many of the Bush Administrations tax reduction principles are still in affect for one more year.  The standard deduction has increased to $5,700 Singles, $11,400 for married couple.  The personal exemptions have increased to $3,650 per dependent.  This means for a married couple they don’t pay taxes on the first $18,700 of their income.  Two children increases this to the first $26,000.  In addition, when you do pay taxesthe tax brackets, the income range that your taxable income falls into, has been increased.  These tax reduction measures expired at the end of 2009, so unless Congress acts to change them, next year every one’s tax payment will increase.

North Carolina has already made their run for your money by adding a surtax, an additional tax for those individuals, making over $60,000 and couples making over $100,000.  We all know the state needs the money and who cares if those filthy rich people have to pay higher and more taxes.

There are major changes for first time home buyers in 2009 and the first four months of 2010 or you buy a new home for the first time in more than five years you may qualify for a substantial refundable credit.  There are alson continued credits for energy savings on your house.  College students and their parents also may have more credits this year on more college expenses.

These changes are confusing and you don’t want to pay a penny more than you have to.  See your tax professional to help you make sure your don’t pay a penny more taxes than you have to.