Click for link to Federal Applicable Rates for November, 2009
Archive for October, 2009
10/19/09 Quote
by P. Lewis RobinsonOct
19
“To the man who only has a hammer in the toolkit, every problem looks like a nail.”
Abraham Maslow
Hope Credit & American Opportunity Tax Credit
by P. Lewis RobinsonOct
18
The Hope Credit is a non-refundable tax credit available to students who were enrolled in their first two years of an undergraduate degree program. This credit is applied against qualified education expenses, which includes tuition and books. It is available through the 2008 tax year at a maximum of $1,800 per student.
In 2009, the Hope Credit was modified and is also referred to as the American Opportunity Tax Credit. For 2009 and 2010, the credit increases to $2,500 per student and up to 40% of this is refundable. In other words, the taxpayer may receive up to $1,000 even if he or she owes no taxes. Additionally, the credit can now be claimed for the first four years of a student’s post-secondary education. The qualified tuition and books requirements have also been expanded to include course materials, such as supplies and educational equipment.
Please stay tuned for details on other education credits and deductions.
Quote of the day!
by P. Lewis RobinsonOct
16
“By working faithfully eight hours a day you may eventually get to be boss and work twelve hours a day.”
Robert Frost
10-15-2009 Quote
by P. Lewis RobinsonOct
15
“Riches don’t make a man rich, they only make him busier.”
Christopher Columbus
10/11/09- Year End Tax Planning Letter
by P. Lewis RobinsonOct
11
Year End Tax Planning Letter
Year-end tax planning could be especially productive this year because timely action can nail down a host of tax breaks that won’t be around next year unless Congress acts to extend them.
These include, for individuals:
- The option to deduct state and local sales and use taxes instead of state income taxes; the standard or itemized deduction for state sales tax and excise tax on the purchase of motor vehicles.
- The above-the-line deduction for qualified higher education expenses.
- Tax-free distributions by those age 70 1/2 or older from IRAs for charitable purposes.
- $8,000 first-time homebuyer credit (expires for purchases after Nov. 30, 2009).
Quote from Robert Brault
by P. Lewis RobinsonOct
9
I value the friend who for me finds time on his calendar, but I cherish the friend who for me does not consult his calendar. Robert Brault
“I value the friend who for me finds time on his calendar, but I cherish the friend who for me does not consult his calendar.” Robert Brault
Credits & Deductions for Higher Education
by P. Lewis RobinsonOct
8
For those of you who attend college or have children who attend college, you may want to learn more about the higher education tax credits and deductions offered by the IRS. The following list shows the credits and deductions available for the year 2009 with a brief summary of each. In the coming weeks, more detailed write-ups will follow for each individual item.
- Hope Credit – not to be confused with the HOPE Scholarship/Grant available to Georgia students. This non-refundable credit is most beneficial to students in their first two years of post-secondary education and applies to tax years through 2008.
- Lifetime Learning Credit – no limit on the number of years the credit can be claimed, but it cannot be claimed in conjunction with the Hope Credit or American Opportunity Credit for the same student in the same year. This credit is often beneficial to graduate students.
- American Opportunity Credit – modifies the Hope Credit for the 2009 & 2010 tax years, making it available to broader group of taxpayers. Many of those who are eligible will qualify for the maximum credit of $2,500 per student.
- Tuition & Fees Deduction – deductions up to $4,000 can be taken for qualified education expenses paid for the taxpayer, spouse or any dependents. This deduction can be taken even if the taxpayer does not itemize.
- Student Loan Interest Deduction – this deduction is available to taxpayers who paid student loan interest during the tax year. The maximum deduction is $2,500 and it can be taken even if the taxpayer does not itemize.
