— It’s almost here.
Just a few weeks from now, the calendar will read April 15, which for most years is the tax return deadline. If you have already filed your taxes, take a sigh of relief…..
But for those who are putting off their taxes, there are some things they should be aware of. Every year, there are hundreds of changes in the U.S. tax code, but only a handful that the everyday person should be aware of. But most go unnoticed, even though it could mean more money for the taxpayer.
Here are a few tax law changes that may prove helpful as you prepare for the deadline. If you have already filed, forward this tip to someone else so that they too can breath a sigh of relief…..
- One of the most important changes is the first-time homebuyer credit, which was extended. The first homebuyers can receive a tax credit of up to $8,000, while repeat homebuyers may be able to receive a credit of up to $6,000. Repeat homebuyers must have lived in their current home for five of the past eight years. The buyer has to have entered into a contract by April 30 and close on the deal by June 30.
- Another important thing to keep in mind is that with so many jobs being lost during the recession, unemployment benefits have seen a change for the tax season. The first $2,400 in unemployment benefits that an individual received in 2009 is tax-free. Also, if the taxpayer is unemployed, keeping track of job-search expenses, such as job-placement services or mileage, can help reduce tax liability.
- Other credits include anything that makes a home more energy-efficient, such as doors, windows, water heaters, insulation and furnaces. Taxpayers can also claim some college expenses this year. The American Opportunity Credit now applies to all four years of college, as do some other expenses. Up to $2,500 may be claimed and up to $1,000 of the credit is refundable.
- There’s also been some change with tax credits involving children, such as the Earned Income Credit. The credit was expanded to include families with three or more children. The Child Tax Credit was expanded to allow families to begin qualifying with every dollar earned over $3,000.
- People can also deduct the sales tax on the purchase of a new vehicle. However the new vehicle must have been bought between Feb. 17, 2009, and Dec. 31, 2009. The government has been taking less money out of paychecks, which can affect how much a person receives in tax refunds. They’ll see more in their paychecks, but see a lower refund. If they were close, you may end up owing money.
While people put off filing for a variety of reasons, the Internal Revenue Service says not to wait. And filing online with e-file with an authorized provider is the fastest way to submit a return, the IRS said.
To help make the tax process easier, we suggest keeping a person’s accountant up-to-date with any possible tax situation. These include things such as selling property or any major life change.
Diamond Tax Consultants offer year-round support, this way when it happens, you can plan.
Contact our office to schedule your tax appointment before the deadline at 888-456-0800 or for your convenience, schedule your appointment online.