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Archive for February, 2009

$15000 Homebuyers Tax Credit


Well, so much for that idea! Working to accommodate the new, lower overall limit of the bill, our elected officials effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home.

I find it pretty amazing that with our economy in the toilet the way it is, especially in the mortgage and housing market, of all the things they would cut, they chose to cut this provision that could have potentially given a real spark to our down-trodden economy.

All is not lost, though. Instead of the new $7500 first-time homebuyer’s credit, that credit is now replaced with an $8000 first-time homebuyer’s credit. First-time is defined as not having an ownership interest in a personal residence for the past 3 years. You must purchase your new home before July 1, 2009. The credit is equal to 10% of the purchase price of the new home up to a limit of $8000. Unlike the $7500 tax credit that was really an interest free loan that would need to be repaid to Uncle Sam over the next 15 years, this new version of the homebuyer’s tax credit is a true credit. It does not need to be repaid! That’s good news.

Please feel free to contact E-File Florida at 954-583-8534 or visit us on the internet at www.efileflorida.com for more great tax tips and articles.

IRS CIRCULAR 230 Required Notice – IRS regulations require that we inform you as follows: Any Federal tax advice contained in this communication (including any attachments) is not intended to be used and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction as tax related matter(s).

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Categories: Strictly TAXES!

Homebuyer’s Tax Credit May Reach $15000


I’m keeping a close watch on this one! As part of the $900 BILLION tax stimulus package that President Obama is proposing, the senate approved a new homebuyer’s tax credit up to $15000! The details are sketchy at this point, but if this truly passes, it could be the spark that our economy needs. Especially in the housing market.

The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers. Exactly what they mean by “existing residences,” I’m not sure.

I’m keeping a pulse on this one. Check back often for the latest news.

Please feel free to contact E-File Florida at 954-583-8534 or visit us on the internet at http://www.efileflorida.com/ for more great tax tips and articles.

IRS CIRCULAR 230 Required Notice – IRS regulations require that we inform you as follows: Any Federal tax advice contained in this communication (including any attachments) is not intended to be used and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction as tax related matter(s).

Categories: Strictly TAXES!

Earned Income Tax Credit


Here’s a few things you may not know about the Earned Income Tax Credit (EITC):

The Earned Income Tax Credit is for people who work, but have lower incomes.

1. A quarter of all taxpayers that qualify don’t claim the credit. The Earned Income Tax Credit is money you can use to make a difference in your life. Just because you didn’t qualify last year, doesn’t mean you won’t this year. As your financial situation changes from year-to-year you should review the EITC eligibility rules to determine if you qualify.

2. If you qualify, it could be worth up to $4,800 this year. If you qualify, you could pay less federal tax or even get a refund. The EITC is based on the amount of your earned income and whether or not there are qualifying children in your household.

3. Your filing status cannot be Married Filing Separately. Your filing status must be married filing jointly, head of household, qualifying widow or single.

4. You must have a valid Social Security Number. You, your spouse (if filing a joint return) and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.

5. You must have earned income. This credit is called the “earned income” tax credit because you must work and have earned income to qualify. You have earned income if you work for someone who pays you wages or you are self-employed.

6. Married couples and single people without kids may qualify. If you do not have qualifying children, you must also meet the age and residency requirements as well as dependency rules.

7. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make the election, the combat pay remains nontaxable, but you must include in earned income all nontaxable combat pay you received.

Please feel free to contact E-File Florida at 954-583-8534 or visit us on the internet at www.efileflorida.com for more great tax tips and articles.

IRS CIRCULAR 230 Required Notice – IRS regulations require that we inform you as follows: Any Federal tax advice contained in this communication (including any attachments) is not intended to be used and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction as tax related matter(s).

Categories: Strictly TAXES!
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