NEWSLETTER January 13, 2010
Congratulations to everyone for a new year!
Hello, this is Jody Tiernan from Tiernan & Associates LLC Tax consultants, your source for income tax preparation and tax related issues. This is the latest issue of our informational newsletter; we hope to bring to you on a quarterly basis, in an effort to communicate issues, and information, that we find are important to our clients.
If you wish to be removed from our Newsletter list, just reply with "Remove" in the subject line.
This newsletter will also focus on a few of the most common areas that we found to be of concern to our tax clients in the past few tax filing years and the upcoming 2009 tax year.
NO PRICE INCREASE for tax year 2009!
In a world where prices continue to go up, we continue to fight the battle against constantly increasing prices.
We strive for efficiency, so we can keep our costs low for the benefit of our customers. There are so many families that are struggling financially, that we believe, having to pay for their tax preparation should not be a problem.
Don't wait till the last minute!!
Are you ready for your 2009 tax return?
Appointments are available!
The time is here for reporting all your hard earned money to Uncle Sam. We want everyone to visit our website www.tiernanassoc.com and check out the latest information concerning taxes and tax law changes that affect you.
You may reply to this e-mail with questions, or to set up an appointment. Our e-mail address is tiernan@bizwoh.rr.com. You may also contact our helpful staff by phone at 937-832-0271with questions, to set an appointment, or purchase our helpful items.
First-Time Homebuyer Credit keeps improving!
When he credit was enacted in 2008, the credit was 10 percent of the purchase price of a qualifying residence up to a maximum of $7,500. The credit applied only to homes purchased prior to July 1, 2009. In the original legislation, taxpayers were required to repay the credit over a 15-year period, which ultimately made this credit no more than a tax-free loan.
In early 2009, the Federal government increased the maximum credit to $8,000, extending the cut-off date to November 30, 2009 and eliminated the repayment of the credit.
In November of 2009, the government improved the tax credit once more by expanding the definition of who may qualify as a first-time homebuyer and increasing the time to purchase a home through April 30, 2009.
The government also extended the credit for homes purchased after November 6, 2009 to any taxpayer that meets new "long-term resident" qualifications. These taxpayers may be eligible for a similar credit. Under the credit, you must have lived in your old residence 5 continuous years of the last 8. The ending date is the purchase date of the new residence. The maximum credit allowed is $6,500.
To qualify, you must have purchased the home by April 30, 2010. If you enter into a contract by April 30, and the property closes prior to July 1, 2010 you may also be eligible.
New Education Credit has big impact for 2009
With a new name "The American Opportunity Credit" the new education credit will expand the benefits beyond both those of the of the Hope and the Lifetime earning credit. The credits have now increased in amount from $2,500 to $4,000 and it includes required class materials. In addition, the credit will be applicable for all four years of college and may include a possible refundable credit of up to $1,000. When submitting information, be sure to send all the information requested in our tax organizer concerning this credit. That way we can find the best combination of credits for your situation.
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If you purchased a new vehicle after February 17, 2009 and before January 1, 2010 you will be able to deduct the sales tax. The deduction is limited to the amount of sales tax paid up to the first $49,500 of the sales price. The deduction is allowed even if you are unable to itemize.
A Portion of Unemployment may not be taxable
If you received unemployment, the first $2,400 of benefits received may not be taxable.
Residential Energy Credit is back this year
In 2007, many taxpayers took advantage of tax credits for various energy saving home improvements. Then in 2008, most of the credits were eliminated.
The energy credits were reinstated for 2009. Not only reinstated, but the amount of credit for qualified improvements has increased from 10 to 30 percent of the cost of the qualifying improvements. The credit is limited to $1,500 per household.
The list for applicable improvements include:
Exterior Windows
Exterior Doors
Electric heat pumps and water heater
Central air conditioners
Insulation material
Certain metal roofing
Please address the credit applicability with the manufacturer, they should be aware of any possible tax credits.
We hope this newsletter is a help, and we welcome your comments and suggestions to allow us to improve it.
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