Hot Tax Tips 2009

Standard Deductions have changed:

           Married from $10,900 to $11,400

           Married/Separately from $5,450 to $5,700

           Single from $5,450 to $5,700

           Head of Household from $8,000 to $8,350

  

Personal Exemption went from $3,500 to $3,650.

  

Earned Income Credit limits this year are:

           1 Qualifying Child earning limit is $35,463.

           2 Qualifying Child earning limit is $40,295.

           3 or more Qualifying Child earning limit is $43,279.

 

Option Split Refunds - Up to three accounts can be deposited into.  

  

Real property taxes deduction even if you do not itemize  

  

Alternative Minimum Tax "AMT"? Relief Act includes $100 billion in tax breaks for businesses and the middle class.

  

New First-Time Homebuyers Tax Credit Please ask questions on your situation if you bought a New Home in 2009 or 2010. Also see http://www.irs.gov/newsroom/article/0,,id=204671,00.html

  

Unemployment compensation the first $2,400 paid to you in 2009 is not taxable.

 

A temporary increase in FDIC deposit insurance limit from $100,000 to $250,000 until Dec 2009

  

Stricter Regulations for a Qualifying Child are still in place.

  

Restrictions on Charitable Contributions

           All Cash contributions must have bank record or a receipt.

           All clothing and household items have to be in good condition or better.

  

Retirement Plans - Please ask questions on your situation (There are Many Changes)

  

IRA Deductions has stayed the same.

  

Capital Gains - all net long-term gains are subject to a max of 15% rate. If you are in the lower two tax brackets then the 5% rate has been reduced to 0%. Remember, any capital losses in excess of $3000 can be carried back 2 years and then carried forward. Rates will increase back to 2003 rates in 2011.

  

Alternative Fuel Vehicle Credit (Please call to see if your vehicle qualifies)

  

Military Tax Relief - Multiple deduction's

  

(HSA) Health Savings Accounts (Are for everyone not just business owners and are no longer prorated).

  

There are also many new and expired credits (please call for further information if needed)

 

Remember to ask questions if any of the following apply to you; Casualty Loss, Cobra Insurance, Net Operating Loss, and Non-business Energy Property.

 

  

Medical and Dental expenses if they do not effect your federal return due to the 7.9% AGI limit they will effect your Arizona state tax return. If you can't find all your receipts you can always get a printout from your doctor, hospital, and pharmacy.

  

Tags and Registration you can go to www.servicearizona.com to get this information.

  

Purchased or Sold a Property - land, commercial, residential, or just an asset (auto, equipment, and misc) please bring in your information on the transactions.

 

  

IRS passed the Small Business and Work Opportunity Tax Act of 2007. This act defines and gives further explanation on current tax laws.

  

Limit for Social Security portion of Self-employment Tax increased to $106,800

  

Arizona Business - New Social Security Verification's for New Employees

  

179 Deduction same as 2008 limits

  

Depreciation Limits have changed - Please ask questions on your situation.