In late 2010, Congress and President Obama passed new tax laws that take effect in 2011 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010).
The Making Work Pay tax credit is gone.
As a result, most people will benefit from a cut in Social Security taxes (also known as Payroll Taxes).
Previously, people paid 6.2% toward Social Security. Under the new law, people will be paying 4.2%, a reduction of 2% in their Social Security tax withholding rate.
That is good news for many Americans as it essentially means a 2% increase in your paycheck.
[Read more…] about More Money in Your Paycheck – The Payroll Tax Cut (Social Security Tax Cut)
A tax credit passed in 2006 for the purchase of hybrid vehicles is still in effect — but it will end on December 31, 2010. If you purchase certain hybrids, you could be eligible for a tax credit. There are stipulations, though. The tax credit is only available on the first 60,000 models sold by the manufacturer. Some manufacturers have sold more than 60,000 units of some hybrid models. However, there are still some hybrids that haven’t sold out. 
There are two main types of credits available. The most common credit is money that you can get back for conventional home usage improvements, such as energy efficient windows and doors. The second type of credit targets alternative energy investments, such as solar or wind powered additions.
