Archive for the ‘Tax Credits’ Category

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Six Facts about the American Opportunity Tax Credit

by P. Lewis Robinson
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Sep
7

There is still time left to take advantage of the American Opportunity Tax Credit, a credit that will help many parents and college students offset the cost of college. This tax credit is part of the American Recovery and Reinvestment Act of 2009 and is available through December 31, 2010. It can be claimed by eligible taxpayers for college expenses paid in 2009 and 2010.

Here are six important facts the IRS wants you to know about the American Opportunity Tax Credit:

  1. This credit, which expands and renames the existing Hope Credit, can be claimed for qualified tuition and related expenses that you pay for higher education in 2009 and 2010. Qualified tuition and related expenses include tuition, related fees, books and other required course materials. (more…)
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Ten Tips for Taxpayers Making Charitable Donations

by P. Lewis Robinson
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Aug
31

Did you make a donation to a charity this year? If so, you may be able to take a deduction for it on your 2010 tax return.

Here are the top 10 things the IRS wants every taxpayer to know before deducting charitable donations.

  1. Charitable contributions must be made to qualified organizations to be deductible. You can ask any organization whether it is a qualified organization and most will be able to tell you. You can also check IRS Publication 78, Cumulative List of Organizations, which lists most qualified organizations. IRS Publication 78 is available at IRS.gov. (more…)
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Seven Facts about the Nonbusiness Energy Property Credit

by P. Lewis Robinson
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Aug
17

Thinking about making some energy saving improvements to your home this summer? Taking some energy saving steps now may lead to bigger tax savings next year. The Nonbusiness Energy Property Credit, a tax credit for making energy efficient improvements to homes was increased as part of the American Recovery and Reinvestment Act of 2009.

Here are seven things the IRS wants you to know about the Nonbusiness Energy Property Credit:

  1. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined. (more…)
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Five Facts about the Making Work Pay Tax Credit

by P. Lewis Robinson
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Jul
27

1. This credit – still available for 2010 – equals 6.2 percent of a taxpayer’s earned income. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.

2. Eligible self-employed taxpayers can benefit from the credit by evaluating their expected income tax liability and, if they are eligible, by making the appropriate adjustments to the amounts of their estimated tax payments. (more…)

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Summertime Child Care Expenses May Qualify for a Tax Credit

by P. Lewis Robinson
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Jul
13

Did you know that your summer day care expenses may qualify for an income tax credit? Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Those expenses may help you get a credit on next year’s tax return.

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year. (more…)

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Congress OKs legislation to extend closing date for homebuyer credit

by P. Lewis Robinson
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Jul
1

On June 30, Congress passed H.R. 5623, the Homebuyer Assistance Improvement Act of 2010. The Act, which is now cleared for the President’s signature, provides first-time homebuyer credit relief to taxpayers who couldn’t meet a key June 30, 2010, closing date.

Under prior law, both the regular Code 36 first-time homebuyer credit of $8,000 and the reduced credit of $6,500 for long-term residents generally expired for homes purchased after Apr. 30, 2010. However, if a written binding contract to purchase a principal residence was entered into before May 1, 2010, the credit could be claimed if the purchase closed before July 1, 2010. (more…)

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Adoption Credit Expanded for 2010

by P. Lewis Robinson
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Jul
1

The value of the adoption tax credit has been enhanced for 2010, one of the many tax-related provisions that was part of the massive health care reform bill that was signed into law in March 2010. The adoption credit is worth a maximum of $13,170 for 2010 and will be a refundable credit.

Refundable credits can produce tax refunds that exceed the amount of money paid in through withholding and estimated taxes. Non-refundable credits, by contrast, can at most reduce a person’s federal income tax liability to zero.

The adoption credit will remain a refundable credit for 2011 as well, and the 2011 maximum dollar amount will be indexed for inflation. After 2011, the credit will revert back to being worth $5,000 (or $6,000 for a special needs child) under the law’s sunset provisions.

Article found on about.com. http://taxes.about.com/b/2010/06/21/adoption-credit-expanded-for-2010.htm?nl=1

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Five Tips About the First-Time Homebuyer Credit Documentation Requirements

by P. Lewis Robinson
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Apr
28

Claiming the First-Time Homebuyer Tax Credit on your 2009 tax return might mean a larger refund but it can seem complex. Are you confused about the documentation requirements? The IRS recognizes that the settlement documents can vary from location to location, so here are five tips to clarify the documentation requirements. (more…)

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Top 10 First-Time Homebuyer Credit Tax Tips

by P. Lewis Robinson
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Apr
7

There is still time to claim the First-Time Homebuyer Tax Credit on your 2009 tax return. If you purchased or entered into a binding contract to purchase a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit. Claiming this credit might mean a larger refund. Here are 10 things the IRS wants you to know about the First-Time Homebuyer Credit and how to claim it.

  1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or before June 30, 2010. (more…)
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Top Ten Facts About the Child and Dependent Care Credit

by P. Lewis Robinson
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Mar
8

Did you pay someone to care for a child, spouse, or dependent last year? If so, you may be able to claim the Child and Dependent Care Credit on your federal income tax return. Below are the top 10 things the IRS wants you to know about claiming a credit for child and dependent care expenses.

1.     The care must have been provided for one or more qualifying persons. A qualifying person is your dependent child age 12 or younger when the care was provided. Additionally, your spouse and certain other individuals who are physically or mentally incapable of self-care may also be qualifying persons. You must identify each qualifying person on your tax return. (more…)

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