With just over 300 changes to the Internal Revenue Code as part of the Recovery Act of 2009 (Stimulus Bill), below are a few of the bigger items that you might want to take advantage of:
- Onetime payments of $250 to indiviuduals on fixed income (primarily Social Security, Railraod retirees and disabled verterans). Some retired government workers will also receive the one time payments of $250.00.
- First time home buyers will now get a $8,000 tax credit. Escrow must close in 2009. If you live in the home at least 36 months, you DON'T have to repay the credit.
- A special "above the line" deduction is now available for state and local sales taxes or excise taxes paid on the purchase of a new vehicle. There is a phase out if your income exceeds $125,000 ($250,000 for joint returns).
- Education credit: The HOPE credit now goes to $2,500 per year and will include "course materials" in "qualifying expenses".
The IRS has recently announced it is stepping up the examination and auditing of tax returns in an effort to increase compliance as well as tighten the multi-billion dollar “Tax Gap.” High on the list of growing IRS audits will be self employed taxpayers who file a Schedule C (Form 1040) with their tax return. IRS estimates range from at least a 50% to a 74% increase in these taxpayer audits.
Here at our offices, we of course do taxes in a traditional way, albeit with the help of technology to make the process more efficient. And while Turbo Tax has helped some, technology can't solve every problem or answer every question - particularly when it comes to taxes.
Tax-Pro is Pleased to announce that they are now a proud member of the Better Business Bureau of San Diego
by SD Tax Pro
Terry Smith of Tax-Pro says "Having been accepted by the the BBB means a great deal to me." "So many tax preparers are fly by night companies, who come in to San Diego for four months a year ... and then they're gone." "I think joining the BBB solidifies that we're a bona fide San Diego based company with a 28 year business ethic that can't be questioned" Go to www.bbbonline.org/ to find out more.