Belleview Taxes and Accounting

2009 Checklist

2009 YEAR END TAX CHECKLIST
Tax Returns due soon. Start early and avoid the last minute crunch.

1. Last year’s return:
A. Do you have a copy? (we can show you how to get it)
B. Were you satisfied? (if not, why?)
C. Did you overlook anything? (we can amend past returns)

2. Has your filing status changed? (births, death, marriage, divorce, etc.)

3. Your age:
A. Key ages for taxpayers are 19, 24,25 and 65 or older.

4. Gross Income: I.R.S. requirements regarding gross income change every year and can have a big effect on your refund.

5. Dependents:
A. There are new laws allowing you to claim dependents you may have not been able to claim in the past.
B. Key ages for dependents that may affect your return are 13, 17, 19, and 24.
C. The rules involving children of divorced parents can be very complicated and the average person MAY benefit greatly from professional advice!

6. Events in 2009 that may effect your return:
A. Your return is not just numbers, it is a reflection of your life. The I.R.S can be a great help when adversity befalls you. Document all problems that you may have had in 2009. It has been a rough year for everyone and the I.R.S KNOWS it.
B. Income is usually MONEY, PROPERTY, and SERVICES you receive from any source worldwide. Reporting all of your income is not just the law. It may actually increase your refund and entitle you to more benefits. For example: reporting TIP income of $1,000, for instance, may increase your tax by about $100 but get you $400 or more in an EARNED INCOME CREDIT REFUND and other benefits.

C. Get a head start on your tax return. If you have a problem, let’s find the solution.

Check all that apply to you. Call for you appointment to have all your questions answered.

___Adoptions ___ Disaster Loss ___ IRA Distributions
___Additional Child Tax Credit ___ Earned Income ___ Joint Returns
___Advance Earned Income Credit__ Education Expenses ___ Lifetime Learning Credit
___Alimony ___ Employment Expenses ___ Medical Expenses
___Annuities ___ Entertainment Exp. ___ Mileage Allowances
___Bad Debts ___ Estimated Tax ___ Moving Expenses
___Bankruptcy ___ Exemptions ___ Ordinary Dividends
___Barter ___ Fair Rental Values ___ Pensions
___Births ___ FICA ___ Permanent Disability
___Business Expenses ___ Foster Child ___ Personal Property Tax
___Capital Gains ___ Full Time Student ___ Qualified Charities
___Capital Improvements ___ Fringe Benefits ___ Qualifying Child
___Casualty Loss ___ Full Retirement Age ___ Qualifying Relative
___Child Care ___ Gifts ___ Qualifying Widow(er)
___Child Support ___ Head of Household ___ Roth IRA
___Child Tax Credit ___ Hope Credit ___ Social Security
___Custodial Parent ___ Household Employees ___ Student Loan Interest
___Dependents ___ Household Expenses ___ Tip Income
___Dependent Care Credit & Exp. ___ Inheritance ___Tuition and Fees
___Depreciation ___ Itemized Deductions ___ Unearned Income

This is a general list and is not complete, only a guideline.

If you are a self-employed taxpayer, business owner and landlord etc call ASAP to discuss your unique problems.

http://www.belleviewaccountingandtaxes.com

Tax Credits and Deductions, New Tax Rules

How do get dollars for dimes?

A financial services expert can find tax credits and deductions that do-it-yourself programs may overlook.
You may save so much that it will be like getting a return on your investment for professional financial services, ‘dollars for dimes’.

Have prior year tax returns review for deductions and tax credits that may have been overlooked?

2009 Tax Law Changes & Updates

There have been several major changes to be aware of in 2009, along with many of the existing regulations having been extended into 2009 and beyond. We have prepared this summary to give each of you an overview of current tax rules which will affect your total tax burden when you file in early 2010.

Required Minimum Distributions

The Worker, Retiree, and Employer Recovery Act of 2008, which was signed into law on December 23, 2008, suspended the required minimum distribution (RMD) rules for IRAs and qualified retirement plans for 2009. Those who want to take distributions can take as much, or as little, as they want from these retirements accounts.

RMDs for 2008 that are permitted to be made in 2009 by reason of the individuals required beginning date being April1, 2009, must still be made; they are not suspended.

For an individual whose required beginning date is April 1, 2010, the RMD for 2010 must be made by the last day of 2010.

For RMDs under the five-year rule, the five-year period is determined without regard to calendar year 2009 (e.g.,

the end of the five-year period with respect to an account for a person who died in 2007 is 2013 instead of 2012).

Cash for Clunkers

A $3,500.00 or $4,500.00 voucher or payment made for such a voucher under the CARS “cash for clunkers” program to buy or lease a new fuel-efficient automobile is not taxable for federal income tax purposes.

Unemployment Compensation

You do not have to pay tax on unemployment compensation of up to $2,400.00 per recipient. Amounts over $2,400.00 are still taxable for federal income tax purposes.

U.S. Series I Savings Bonds With Your Refund

You can now receive up to $5,000.00 of U.S. Series I Savings Bonds as part of your income tax refund without setting up a Treasury Direct account in advance.

Cobra

The 65% subsidy for payment of COBRA health care coverage continuation premium is not taxable for federal income purposes.

IRA Tax Deduction Expanded

You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income (AGI) is less than $65,000 ($109,000 if married filing jointly or qualifying widow(er). If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2009 modified AGI is less than $176,000.

Standard Milage Rates

The 2009 rate for business use of your vehicle is 55 cents a mile. The 2009 rate for use of your vehicle to get medical care or to move is 24 cents a mile.

Divorced or Separated Parents

A noncustodial parent claiming an exemption for a child can no longer attach certain pages from a divorce decree or separation agreement of Form 8332 if the decree or agreement was executed after 2008. The noncustodial parent must attach form 8332 or a similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption.

Everything Congress passes for future years can and in many cases does get modified, augmented, or deleted several times over. Tax law is used by the Goverment to induce taxpayers to comply with their economic and social goals of our society. So as the goals evolve, so does the law.

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Friday, February 12th, 2010 Uncategorized No Comments