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Personal Income Taxes
Economic Stimulus Payment you received this summer has to be reported on your 2008 tax return. Please bring in your letter stating how much you received.
Standard Deductions have changed:
Married from $10,700 to $10,900
Married/Separately from $5,350 to $5,450
Single from $5,350 to $5,450
Head of Household from $7,850 to $8,000
Personal Exemption went from $3,400 to $3,500.
Earned Income Credit limits this year are:
One Qualifying Child earning limit is $33,995.
2 or more Qualifying Child earning limit is $38,646.
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 Must be Repaid Over 15 Years
The first-time homebuyers new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008 is available for a limited time only. The credit operates much like an interest-free loan, because it must be repaid over a 15-year period. * Applies to home purchases after April 8, 2008, and before July 1, 2009. * The Credit is claimed in the year the home is purchased. The credit equals the lesser of: 10% of the purchase price of the home or, $7,500 MFJ or $3,750 MFS.
* Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.
A temporary increase in FDIC deposit insurance limit from $100,000 to $250,000 until December 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.
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)
Tax Organizational Tips
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.
Business Income Taxes
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 $102,000
Arizona Business - New Social Security Verification's for New Employees
179 Deduction Limits have gone up
Depreciation Limits have changed - Please ask questions on your situation.
Standard Mileage Rates (Please bring all supporting documentation split by the dates below.)
Business Miles: 1/1/08 to 6/30/08 are 50.5 then from 7/01/08 to 12/31/08 are 58.5.
Medical & Moving Miles 1/1/08 to 6/30/08 are 19 then from 7/01/08 to 12/31/08 are 27.
Charitable Miles 14 all year long.
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