You can deduct donated goods

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Giving is rewarded at tax time

Good deeds don't have to go unrewarded.

Contributions to qualified charities can help you at tax time if you itemize on Schedule A. The cost of your donation is reduced by savings on the taxes you owe. If you are in the 33 percent tax bracket, you can save $33 on a $100donation.

Here are a few things you need to know, courtesy of the Internal Revenue Service:

Taxes 2009: What you need to know

Changes are nothing new when it comes to taxes. Each year, there's a tweak here, a tweak there and occasionally a punch to the gut.

This year, more of the changes are designed to help taxpayers with an eye toward helping the economy. New laws add a variety of credits and deductions that could put more money in your pocket. But first you have to help yourself by learning what's new. You may want to go to a tax specialist, use software, read a tax guide, consult the Internal Revenue Service's Web site or actually read the 1040 that comes in the mail. We're going to get you started by highlighting some of the major changes.

Change for everyone

Tax breaks fought on donated houses

The battered house on Sherwin Road was put to good use before the fire department burned it to the ground.

SWAT teams barged through the front door in an exercise on dealing with domestic violence. Rescue crews scattered mannequins around the house and blew smoke through the halls to simulate a meth lab explosion. Firefighters set fires in one room after another and practiced putting them out. Then, in one last drill, they torched the whole place.

Five years later, though, a dispute still smolders over the homeowner's attempt to claim a $287,000 charitable tax deduction for donating the house to the fire department, which has burned down at least 32 such homes in Upper Arlington since 1988. The Internal Revenue Service is trying to stop homeowners from claiming such deductions.

New car buyers qualify for tax break

The cash-for-old-cars rebate -- which ends 8 p.m. Monday -- isn't the only stimulus deal out there for new car buyers.

A special tax deduction for new car buyers is available when you file your 2009 return next year. The rules break down to this:

The new vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the federal income tax deduction. The American Recovery and Reinvestment Act of 2009 allows taxpayers to deduct state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles.

Act quickly to lock in 2009 tax-savings

Q: We've read about preparing for Roth conversions in 2010, but are there other tax planning items we should be ready for in 2010? Is there anything we should be doing before the end of 2009? There are some things you can do to save taxes before year-end. I wouldn't spend money just to save on taxes, but if you are considering making major purchases soon, it may be wise to act now.

One example is the purchase of a new vehicle, motorcycle or motor home. Under the Money Back for New Vehicle Purchases, taxpayers who buy a qualified vehicle before Jan. 1 may deduct sales and excise taxes paid on as much of $49,000 of the purchase price. The deduction phases out for married couples with modified adjusted gross income between $250,000 and $260,000 and for singles with modified adjusted gross income between $125,000 and $135,000. No deduction is allowed for taxpayers with modified adjusted gross income above the higher limits.

Another example of spending money to receive a tax break is the First Time