Tax Changes you Need to Know About

Tax Changes you Need to Know About

The American Recovery and Reinvestment Act (ARRA) has many different tax provisions to spur economic growth. The First Time Home Buyer’s credit and the new expanded Long Time Home Buyers credit are things you can take advantage of if you purchase a home. Tuition changes make school more affordable. And making your home more energy efficient can earn you tax credit.

The IRA limits have been increased to provide additional saving opportunities. Now singles with income up to $65,000 and couples with income up to $109,000 can put money into IRAs with … Read more at 2009 Tax.

Tax Changes you Need to Know About

The American Recovery and Reinvestment Act (ARRA) has many different tax provisions to spur economic growth. The First Time Home Buyer’s credit and the new expanded Long Time Home Buyers credit are things you can take advantage of if you purchase a home. Tuition changes make school more affordable. And making your home more energy efficient can earn you tax credit.

The IRA limits have been increased to provide additional saving opportunities. Now singles with income up to $65,000 and couples with income up to $109,000 can put money into IRAs with a deduction.

Standard deductions have been increased for almost everyone which reduces your tax burden. And the standard mileage rates have been improved to make driving for work affordable. A 55 cent deduction is available for business travel while 24 cents per mile is available for medical travel.

Finally the ceiling for child interest income taxed at a child’s tax rate (Kiddie tax) has been raised to $1,900. Gifting more to children is now beneficial for the whole family.

Donations to Haiti and their Tax Deductions

Donations to Haiti and their Tax Deductions

The IRS has new rules designed to assist those making donations to Haiti in a relief effort after their recent earth quake. Your 2010 donations can be deductible in 2009 if you follow the guidelines provided. First, your donations must be going directly to aid the Haitian people affected by the natural disaster.

There is a specific window of time that your donations must be made in to be eligible. The start date is the day we first heard about the earthquake, January 11th, and the final date is March 1, 2010. Additionally, … Read more at 2009 Tax.

Donations to Haiti and their Tax Deductions

The IRS has new rules designed to assist those making donations to Haiti in a relief effort after their recent earth quake. Your 2010 donations can be deductible in 2009 if you follow the guidelines provided. First, your donations must be going directly to aid the Haitian people affected by the natural disaster.

There is a specific window of time that your donations must be made in to be eligible. The start date is the day we first heard about the earthquake, January 11th, and the final date is March 1, 2010. Additionally, the donations must be made to qualified chartable organizations and not to families directly.

Cash contributions made by a number of different formats are only allowed. These formats include texting, check, credit card or debit card. Finally, the one provision that might be difficult for some is the need to itemize your deductions. Therefore, if you normally file a 1040EZ tax return, you will need to complete the long form 1040 with a Schedule A attached. Use a program like TurboTax or TaxAct to make completing the extra forms easy. If you do not claim the donations for 2009, you can still claim them for 2010.

See IRS Publication 526 and Publication 3833 for addition details.