The White House, Congress and the IRS have been busy with new tax developments these past few months which could lower your tax bill next year.  Read on to learn more.

Making Work Pay credit. Many wage earners are seeing an increase in their take-home pay because of the Making Work Pay credit. Employers started using new withholding tables reflecting the credit in April. However, individuals with multiple jobs and some pension recipients may discover they had too little tax withheld when they file their 2009 returns in 2010.

Cash for clunkers. You have likely heard about a new federal program to encourage people to trade-in old "clunkers" for new fuel efficient vehicles. Consumers will be eligible for tax-free vouchers of either $3,500 or $4,500 toward the purchase or lease of a new, more fuel-efficient vehicle. Neither the consumer nor the dealer will recognize taxable income as the result of the voucher.  You will not receive a paper or electronic voucher. Rather, vouchers will be applied by participating dealers, reducing the purchase price.

First-time homebuyer credit. In April, the IRS reminded taxpayers that they cannot claim the first-time homebuyer tax credit in anticipation of a future purchase.  The first-time homebuyer credit reaches $8,000 for purchases between January 1, 2009 and November 30, 2009. Taxpayers must be qualified buyers and satisfy income requirements.