THIS IS AMAZING, BIGGER REFUNDS FOR THIS UPCOMING TAX SEASON!!! NEW 2009 TAX CHANGES
Earned Income Credit (EIC) Increased: FIRST TIME IN HISTORY!!!
You can now get credit for 3 kids with Earned Income Credit
$3043 one child
$5028 two children
$5657 three children
$457 no child
Earned Income Amount Increase (EIC):
$35,463 ($40,463 MFJ) one child
$38,646 ($41,646 MFJ) two children
$43,279 ($48,279 MFJ) three children
$13,440 ($18,440 MFJ) no child
Hope Learning Credit:
For year 2009 & 2010 the Hope Credit will change
VERY BIG: Hope Credit now 1st 4 years, also 40% of the Hope Credit is now a refundable credit. Max Credit $2500.00 but phased out at $80,000 – 90,000 ($160,000 -$180,000 MFJ)
FIRST-TIME HOME BUYER CREDIT:
$7500 (2008), Up to $8000 if you purchased your home in 2009 but only half of the amount if Married Filing Status
UNEMPLOYMENT COMPENSATION:
Each person that received unemployment compensation can be excluded from gross income up to $2400
STANDARD DEDUCTION INCREASED:
Single – $5,600
MFJ – $11,100
MFS – $5,600
HOH – $8,150
QW/WD – $11,100
NOTE: The IRS may change the below figures before the
new tax season.
NEW DEDUCTION FOR SALES & EXCISE TAXES IMPOSED ON PURCHASES OF NEW MOTOR VEHICLES:
You can deduct the state or local sales and excise taxes paid on a purchased vehicle after February 16, 2009 and before 2010.
A qualified motor vehicle includes a passenger auto, light truck, motorcycle or motor home that’s less that 8,500 pounds or less. You can claim up to the first $49,500 of the purchase price.
The deduction is phased out over a $10,000 range that begins when AGI is more than $125,000 ($250,000 if married filing joint) No deduction if AGI is more or equal to $135,000 ($260,000 MFJ)
PERSONAL EXEMPTION AMOUNT INCREASED:
Amount increased to $3,650
REDUCTION IN EARNED INCOME NEEDED TO CLAIM ADDITIONAL CHILD TAX CREDIT:
Amount reduced to $3,000
INCOME LIMITS INCREASED FOR STUDENT LOAN INTEREST DEDUCTION:
MFJ AGI is between $120,000 - $150,000 (Phased out) all other filing statuses AGI is between $60,000 - $75,000 (Phased out)
EXPANDED DEFINITION OF QUALIFIED EXPENSES FOR QUALIFIED TUITION PROGRAMS:
Educational expenses now include purchase of computer software, any computer or related peripheral equipment, fiber optic cable for computer use & internet
STANDARD MILEAGE RATE:
Business use: 55 cents per mile
Medical & Moving Related Mileage: 24 cents per mile
Charitable Related Mileage: 14 cents per mile
INCOME LIMITS FOR ITEMIZED DEDUCTIONS:
Phased out at $166,800 ($83,400 MFS)
ADOPTION BENEFITS INCREASED:
Max amount $12,150 and phased out at $182,180 – $222,180
INCOME LIMITS FOR LIFETIME LEARNING CREDIT INCREASED:
If the AGI is between $50,000 & $60,000 ($100,000 – 120,000 MFJ)
RESIDENTIAL ENERGY CREDITS:
Reinstated at 30% for energy – efficient heat pumps, a/c’s, water heaters, windows, doors, insulation, and certain roofs. The max is $1,500 (2009 & 2010)
INVESTMENT INCOME AMOUNT INCREASED:
This amount has increased to $3,100
SOCIAL SECURITY & MEDICARE TAXES:
Max wages subject to Social Security Tax is $106,800
No limit on the amount of wages subject to Medicare
DEDUCTION FOR CREDIT OR DEBIT CARD CONVENIENCE FEES:
If you pay your income tax by credit or debit, you can deduct the convenience fee as a miscellaneous itemized deduction on line 23 of Sch A
State of GA Eligible Single Family Residence Tax Credit:
A Taxpayer is allowed the tax credit for a purchase of one eligible single-family residence made between June 1, 2009 and November 30, 2009. The credit amount is the lesser of 1.2 percent of the purchase price of the eligible single-family residence or $1,800.00. The amount of the tax credit that may be claimed and allowed in a single taxable year cannot exceed the lesser of 1/3 of the or the taxpayer's income tax liability. This means a maximum of $600 may be claimed each year. Any unused tax credit can be carried forward bu cannot back carried back.
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