Hopefully, you have your 2008 tax return behind you. But even if your 2008 return is on extension, don't think you can put off worrying about 2009 until next year! Congress has created a number of tax incentives to help stimulate the economy and, in some cases, you need to take action to benefit from those incentives. These incentives include the hybrid and lean-burn vehicle credits, the vehicle sales tax deduction, and the home energy efficiency and energy generation credits. In addition, there are other incentives, strategies and issues that can seriously impact your 2009 tax return.

Consider Purchasing a Home

If you don't own your home, you might consider buying one. Interest rates are low and so are home prices. Where rent payments are not deductible, home mortgage interest and property taxes are allowed, providing most taxpayers with additional tax deductions. This may permit you to reduce your withholding and provide more cash flow during the year.

If you are a first-time homebuyer and purchase the home before December 1, 2009, you may also be able to take advantage of the $8,000 first-time homebuyer credit. This is unlike the credit in 2008, since it is not a loan that needs to be paid back. The IRS' very liberal definition of a "first-time homebuyer" is someone who hasn't owned a home in at least three years.

Need help with the down payment? Consider utilizing one or both of these tax rules:

(1) You (and your spouse, if married) can each tap your respective IRA accounts penalty-free for up to $10,000 each. The IRA distributions, however, are taxable.

(2) If you qualify for the first-time homebuyer credit, after the purchase of your home is completed, you can amend your 2008 federal return to claim the credit (yes, even though the purchase was made in 2009); you don't have to wait until your 2009 return is filed in 2010.

If you are thinking about helping a child or relative with their first home, this may be an opportune time for that as well.

There are other details to be concerned with, and some states are offering their own versions of home buying credits, so you may wish to schedule an appointment to see how a 2009 home purchase will play out for your particular circumstances and income level.

Take Advantage of Loss Carryovers

You may have seen your stock portfolio take a dive in 2008 and you sold off many of these investments. Since investment losses cannot result in a deductible loss greater than $3,000 a year on your tax return, you probably have substantial loss carryovers, which can provide you with a $3,000 loss for a number of years. These loss carryovers can also be used to offset current year gains from sales of other investments, such as land, rental property, a vacation home, and other capital assets. So, if you are sitting on a gain because you don't want to pay the taxes, this may be an opportunity to utilize the carryover losses.

Keep An Eye On Your Withholding

The new "Making Work Pay Tax Credit" is being paid to taxpayers in advance through reduced payroll withholding. The reduction was accomplished by tweaking the withholding tables, which does not consider your specific tax circumstances. You may not have even noticed the difference, especially when spread over weekly, bi-weekly, or semi-monthly payroll checks. However, the amounts add up over time and could cause you to owe more federal income tax when your 2009 tax return is filed. This could be especially troubling for married individuals who both work and have their withholding adjusted.

More Investment Flexibility for 529 Plans

Section 529 Qualified Education plans are tax-advantaged savings plans that can be used to pay qualified education expenses. For calendar year 2009 only, 529 plans may permit accounts to change their investment strategy twice (as opposed to once under prior rules) during the year, as well as upon a change in the designated beneficiary of an account. This new flexibility was prompted by concerns from 529 plan sponsors that in today's market environment the lack of flexibility in switching investments could imperil many 529 accounts.

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