Americans can expect to receive a 10% increase in their tax refunds from last year. Average refunds are $3,036, up $266.
The reason for the increase stems from the wide array of tax credits offered in the Obama administration's Recovery Act. Here are some of the credits:
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$400 for qualified individual workers, or $800 for married couples
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$2,500 credit for certain college expenses
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up to $8,000 for first time home buyers and $6,500 for repeat home buyers
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a deduction for state and local taxes on the purchase of a new vehicle
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a tax break for unemployment benefits; the first $2,500 of jobless benefits received in 2009 are not taxed.
There has been much confusion among taxpayers about exactly what the benefits are and how to file the proper tax forms to get them.
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