March 4, 2009

New standard property tax deduction, first time homebuyer credit, retirement saving expansion, these are among the changes taxpayers will benefits when they fill out their 2008 tax returns. More about this and other changes are summarized below.

Economic stimulus payments are not taxable. However, it affect whether a taxpayer claim the recovery tax rebate. If you did not receive the economic stimulus payment or if you received only portion of it and there is a change in 2008, you may be eligible to claim the portion you have not received. 

ATM-  for tax year 2008 there is increase in the alternative minimum tax exemption.

The following tax breaks, which expired at the end of 2007 were renewed for tax years 2008 and 2009. 

The deduction for state and local sales tax
The educator deduction
Tuition and fees deduction
First time home buyer credit
Residential energy efficient property credit, solar electric, solar water heating, fuel cell property among the properties that are qualify for this credit. Starting in 2008, small wind and geothermal heat pump property are also qualified.

New standard deduction – this year taxpayer can claim an additional standard deduction, based on the state or local real estate taxes paid in 2008. Taxpayer who do not itemize can add the lesser of their real estate taxes or $500 ($1,000, if married) to the standard deduction.

First time home buyer credit for up to $8000.

February 20, 2009

The American Recovery and Reinvestment Plan Act

he new bill provides for more tax breaks for families, individuals and businesses. Some of the credits are listed bellow:

• $400 tax credit for individuals and $800 tax credit for couples.
• Increase in child credit for low income families.
• First time home buyers credit of $8000 for home purchase before December 1, 2009.
• Sales tax write off for new car buyers
• Energy efficient credit for up to $1,500 for homeowner .
• $2,500 education credit for collage students.
• Unemployement benefit tax examption for the first $2,400 received.

More information about the new bill comming soon

February 17, 2009

How long does it take to get tax refund ?

After you file your tax return by mail, your refund should be issued within about six weeks from the day of receipt of your return by the IRS.  If you filed your tax return electronically, your refund should be issued within about three weeks after the IRS receives your return. For amended returns, a refund should be issued within about eight to twelve weeks.

Errors or missing information on your tax return can delay your refund. The most common errors that delay refunds are:
Failing to sign the tax return;
Failing to provide social security and/ or name of taxpayer;
Failing to attach copy B of your W-2 and
Failing to attach other necessary schedules and /or forms.
Before submitting your return, review it carefully and make sure no error occurs. It will minimize the chance of delay your refund. For more questions about how to take advantage of tax breaks and tax deductions to get refund contact my office at 310-461-1997

February 14, 2009

First Time Homebuyer Credit: Taxpayer who but a personal residence after Aprill 8, 2008 and before July 2009 can claim a tax credit of up to $7,500.

Standard Deductions: For 2008, taxpayers who are claiming the standard deduction can also claim a real property tax deduction.

Retirement saving credit: Taxpayers can claim a nonrefundable credit against incme tax and ATM for elective contributions to 401 (k) plans, 403 (b) annuties, 457 plans, SIMPLE and SEP plans, traditional or Roth IRAs. The credit rate depends on the taxpayer's filing status and AGI .

Small Business: The Economic Stimulus Act of 2008 provides that for nay taxable year begining in 2008, the 125,00 limit is increased to 250,000, and the 500,000 limit is increased to 800,000 .

February 20, 2009

The new bill provides for more tax breaks for families, individuals and businesses. Some of the credits are listed bellow:

• $400 tax credit for individuals and $800 tax credit for couples.
• Increase in child credit for low income families.
• First time home buyers credit of $8000 for home purchase before December 1, 2009.
• Sales tax write off for new car buyers
• Energy efficient credit for up to $1,500 for homeowner .
• $2,500 education credit for collage students.
• Unemployement benefit tax examption for the first $2,400 received.