To be considered filed on time, your tax return must be postmarked by the tax deadline.

If you don’t get your taxes filed by the income tax deadline, you can file an extension, which will automatically give you an extra six months to file.

You will not, however, get an extension to pay your taxes. To avoid any penalties, you’ll still need to pay your taxes due by April 15.

The income tax deadline for tax returns with an extension is October 15, 2010.

• How to Make Payments. To make your payment, you can use the paper Form 1040-ES or you can use the IRS EFTPS electronic payment system.
• Who Needs to Make Payments. For guidelines on who needs to pay estimated tax payments, see the estimated tax payment details.
• Payment Due Dates. All of the quarterly estimated tax payment due dates can be found in the 2009 Tax Calendar.

Most of the improvements must be placed in service January 1, 2009 through December 31, 2010. Here is a summary of the energy efficient upgrades and the tax credit available. For specifications of each, see the Federal Tax Credits for Energy Efficiency.

Federal Energy Efficiency Tax Credits

• Insulation. Tax Credit: 30% of cost, up to $1,500.
• Windows and Doors. Including exterior windows and skylights, storm windows, exterior doors, and storm doors. Tax Credit: 30% of cost, up to $1,500.
• Roofing. Including metal and asphalt roofs. Tax Credit: 30% of cost, up to $1,500.
• HVAC. Including central a/c, air source heat pumps, natural gas or propane furnaces, oil furnaces, hot water boilers, and air circulating fans. Tax Credit: 30% of cost, up to $1,500.
• Water Heaters. Tax Credit: 30% of cost, up to $1,500.
• Biomass Stove. Tax Credit: 30% of cost, up to $1,500.
• Geo-Thermal Heat Pump. Tax Credit: 30% of cost.
• Solar Energy Systems. Including solar water heaters and photovoltaic systems. Tax Credit: 30% of cost.
• Residential Small Wind Turbines. Tax Credit: 30% of cost.
• Residential Fuel Cells. Tax Credit: 30% of the cost, up to $500 per .5 kW of power capacity.

Source: Federal Tax Credits for Energy Efficiency

There seems to be a lot of confusion around the tax rules for the Cash for Clunkers program which ended this week. One of the tax rules currently being debated is whether or not you need to pay federal income tax on the value of the cash for clunkers program voucher.

Here is the federal income tax rule from the official Cash for Clunkers government website:

(h) Exclusion of Vouchers From Income
(1) FOR PURPOSES OF ALL FEDERAL AND STATE PROGRAMS- A voucher issued under this program or any payment made for such a voucher pursuant to subsection (a)(3) shall not be regarded as income and shall not be regarded as a resource for the month of receipt of the voucher and the following 12 months, for purposes of determining the eligibility of the recipient of the voucher (or the recipient’s spouse or other family or household members) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal or State program.

(2) FOR PURPOSES OF TAXATION- A voucher issued under the program or any payment made for such a voucher pursuant to subsection (a)(3) shall not be considered as gross income of the purchaser of a vehicle for purposes of the Internal Revenue Code of 1986.

So there’s your answer. The voucher is not subject to federal income tax.

For more information, including state tax information, see Cash for Clunkers Tax Rules and the Cash for Clunkers Business Tax Rules.

Alabama

• Date: August 7-9
• Savings: 4%

Connecticut

• Date: August 16-22
• Savings: 6%

Georgia

• Date: July 30 – August 2
• Savings: 4%

Iowa

• Date: August 7-8
• Savings: 6%

Louisiana

• Date: August 8-9
• Savings: 4%

Mississippi

• Date: July 31 – August 1
• Savings: 7%

Missouri

• Date: August 7-9
• Savings: 4.225%

New Mexico

• Date: August 7-9
• Savings: 5% to 8.5625%

North Carolina

• Date: August 7-9
• Savings: 7%

Oklahoma

• Date: August 7-9
• Savings: 4.5%

South Carolina

• Date: August 7-9
• Savings: 6%

Tennessee

• Date: August 7-9
• Savings: 8.5% to 9.75%

Texas

• Date: August 21-23
• Savings: 6.25% to 8.25%

Vermont

• Date: August 22
• Savings: 6%

Virginia

• Date: August 7-9
• Savings: 5%

West Virginia

• Date: September 1 – November 30
• Savings: 6%

Source: Guide to State Sales-Tax Holidays 2009

For example, a single filer who has $25,000 of taxable income will pay 10% on the first $8,350 ($835) and 15% on the remaining $16,650 ($2,497.50). The total tax will be $3332.50, or an average tax rate of 13.3%.

2009 Tax Brackets

It’s important to note that the Make Working Pay Tax Credit will reduce some of the the tax due in the 10% tax bracket.

Tax Extensions

If you are in the same situation, but your return is not going to get done by the end of the day, be sure to file an extension.

Estimated Tax Payments

In addition to your 2008 return deadline today, if you are self employed, you must also make your first 2009 estimated tax payment.

For a complete listing of 2009 tax due dates, see the 2009 Tax Calendar.

Tax rates are marginal, so you’ll pay taxes at each rate until you reach your taxable income level.

For example, a single filer who has $25,000 of taxable income will pay 10% on the first $8,025 ($802.50) and 15% on the remaining $16,975 ($2,546). The total tax will be $3349, or an average tax rate of 13.4%.

2008 Tax Rates

2008 Home Purchases

Buyers can get a $7,500 First Time Home Buyer Tax Credit. The credit is 10% of the purchase price of your home, capped at $7,500. The credit is a 0% interest, 15 year loan from the government and it must be paid back beginning 2 years later.

2009 Home Purchases

Buyers can get a $8,000 First Time Home Buyer Tax Credit for 2009 home purchases. It applies to homes purchased between January 1, 2009 through November 30, 2009. The credit, which is refundable, is $8,000 or 10% of the home’s value, whichever is less.

You can file for either the 2008 or 2009 first time home buyer tax credit on your 2008 taxes using Form 5405.

IRA contributions can be made between January 2, 2009 and April 15, 2010 for the 2009 tax year.

2009 IRA Contribution Limits

In addition, contributions to IRAs can count toward the Saver’s Credit for Retirement Contributions.