TRKM News

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2010-04-26T08:04:00.001-06:00

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Hiring Incentives to Restore Employment (HIRE) Act

2010-04-01T08:33:00.000-06:00

The HIRE Act provides employers with an exemption from the employer’s 6.2% share of social security tax on wages paid to qualifying employees, effective for wages paid March 19, 2010 through December 31, 2010.

Employee may contact IRS directly about missing Form W-2

2010-02-18T08:40:00.001-07:00

An employee may contact the IRS directly if an employer is not cooperative in providing a new or corrected Form W-2. The IRS will then send a letter to the employer, asking the employer to give the Form W-2 to the employee within ten days.

American Opportunity Credit

2010-02-05T08:58:00.002-07:00

The American Opportunity credit modifies the existing Hope Credit for tax years 2009 and 2010. A credit of up to $2,500 is allowed for qualified education expenses. The credit is: 100% of the first $2,000 of qualified expenses and 25% of the next $2,000 paid.

40% of this credit is refundable.

Haiti Earthquake Relief

2010-01-29T17:07:00.002-07:00

Taxpayers may claim a charitable contribution deduction on their 2009 tax return for cash donations made for the relief of victims in areas affected by the January 12, 2010 earthquake in Haiti. These contributions must be made by March 1, 2010 and are limited to cash contributions.

Social Security Numbers May Be Truncated

2009-12-01T09:17:00.001-07:00

The IRS recently launched a pilot program to help combat identity theft. For calendar years 2009 and 2010, filers of 1099 series forms may truncate a payee's Social Security Number or Employer Identification Number to just the last four digits. The filer must still report the full identification number on forms sent to the IRS for processing.

Making Work Pay Credit

2009-10-21T08:41:00.000-06:00

In 2009, the making working pay credit is the lesser of (1) 6.2% of an individual's earned income, or (2) $400 ($800 for a joint return). It is phased out for higher income taxpayers.

$8,000 First-Time Homebuyer Credit

2009-09-18T10:03:00.000-06:00

The first-time homebuyer credit is a refundable tax credit equal to the lesser of 10% of the purchase price of a principal residence or $8,000. To qualify for the credit, the taxpayer must complete the purchase of an eligible home before December 1, 2009.

Gift Taxes

2009-08-21T15:41:00.002-06:00

To avoid income and estate taxes, shift your income or assets to other family members with lower brackets and wealth. Avoid gift tax by limiting gifts to $13,000 per person this year. ($26,000 if your spouse agrees.)

2009 IRA CONTRIBUTION AMOUNTS

2009-08-11T12:46:00.002-06:00

The contribution limits for 2009 are: $5,000. IRA owners age 50 or older can make an addtional $1,000 "catch-up" contribution. The deadline to contribute to an IRA is April 15 after the end of a tax year.

UNEMPLOYMENT COMPENSATION

2009-08-05T15:38:00.002-06:00

For any tax year beginning in 2009, each recipient of unemployment compensation can exclude from gross income up to $2,400 of the amount he or she received during the year.

New Vehicle Sales Tax Deduction

2009-07-31T11:29:00.001-06:00

For purchases of new vehicles between 2/17/09 and the end of 2009, qualified motor vehicle sales taxes are deductible by individual taxpayers who itemize their deductions. The deduction is also allowed to those claiming the standard deduction.

CARS ACT OF 2009

2009-07-02T10:36:00.002-06:00

The CARS ACT OF 2009, also know as the Cash for Clunkers bill, provides consumers with an incentive (in the form of a $3,500 or $4,500 voucher) to trade in an old gas guzzler against the purchase or lease price of a more fuel-efficient new vehicle. The purchase or lease must be made between July 1 and November 1, 2009.

No Colorado gift tax

2009-06-18T09:48:00.000-06:00

Since January 1, 1980, the State of Colorado has had no gift tax on transfers of property by gifts.

Credit for Retirement Savings Contributions

2009-06-10T16:51:00.002-06:00

If you make eligible contributions to an employer-sponsored retirement plan or to an IRA, you may be able to take a tax credit. The Savers Credit (previously the Retirement Savings Contributions Credit), applies as follows:

Single with income up to $26,500
Head of Household with income up to $39,750
Married Filing Jointly, with incomes up to $53,000

To receive the credit you must be 18 or older, not a full-time student and cannot be claimed as a dependent on another taxpayer's return. If you qualify you may be able to take a credit of up to $1,000 or up to $2,000 if filing jointly. The credit is a percentage of the qualifying contribution amount.

HOMEOWNER AFFORDABILITY AND STABILITY PLAN

2009-05-18T10:08:00.003-06:00

If you owe more on your home than it is worth, you may be able to refinance if:

-The existing mortgage is owned by Fannie Mae or Freddie Mac
-The new mortgage balance will not exceed 105% of the home's current value
-The mortgage balance falls within conforming loan limits - $417,000 for single-family homes

The Homeonwer Stability Initiative is designed to assist responsible homewners who are struggling to make their mortgage payment. To qualify, a homeowner must:

-Have a current mortgage payment that exceeds 31% of monthly gross income
-Live in the home
-Have a loan that is within the conforming loan limits
-Apply within 3 years of the beginning of the program

Deductible Transportation Expenses

2009-05-07T10:08:00.002-06:00

If a taxpayer's residence is his principal place of business, he may deduct the cost of driving between the residence and another work location in the same trade or business, regardless of whether the other work location is regular or temporary and regardless of the distance.

ARRA Education Tax Credit for 2009 & 2010

2009-04-23T14:37:00.003-06:00

Under the American Recovery and Reinvestment Act (ARRA), more families will qualify for a tax credit to pay for college expenses.

For tax years 2009 and 2010 the new credit modifies the existing Hope Credit, making it available to a broader range of taxpayers, including many with higher incomes. It also adds required course materials to the list of qualifying expenses and can be used for four years instead of only two. The maximum annual credit is $2,500 per student. The full credit is available to individuals whose modified adjusted income is $80,000 or less, or $160,000 or less for married couples filing a joint return.

New withholding tables produce mixed results.

2009-03-28T12:02:00.001-06:00

Due to the enactment of the American Recovery and Reinvestment Act of 2009, employers will be using new withholding tables by April 1, 2009. As a result, some employees will be underwithheld and may incur underpayment penalties unless they submit revised Forms W-4.

First-Time Home Buyer Tax Credit

2009-03-12T16:04:00.003-06:00

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit.
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NEW CAR DEDUCTION

2009-03-06T15:28:00.002-07:00

Purchasers of new cars bought after February 17, 2009 are allowed an above-the-line deduction for sales taxes paid on the purchase. The limits are 1.) The taxes can't exceed the portion of the tax attributable to the first $49,500 of the purchase price and 2.) The deduction will be phased out for individuals with adjusted gross income exceeding $125,000 ($250,000 for joint returns). Qualified purchases are cars, SUVS, light trucks or motorcycles that weigh no more than 8,500 pounds. Motor homes also qualify.

New Longer 2008 NOL Carryback

2009-03-03T08:57:00.001-07:00

The American Recovery and Reinvestment Act of 2009, signed into law Feb. 17, 2009, allows qualifying small business to choose a three- four- or five-year net operating loss (NOL) carryback period for certain losses instead of the usual two-year period.

UNEMPLOYMENT BENEFITS - 2009

2009-03-03T08:45:00.002-07:00

The new Stimulus law temporarily excludes up to $2400 of unemployment compensation from a receipient's gross income for 2009. The balance of unemployment compensation is fully taxable.

Capital Gains Tax Rates

2009-01-29T08:57:00.001-07:00

For tax years 2008-2010 there is a zero-percent capital gains rate for taxpayers in the 10% and 15% tax brackets. In 2008 the 15% threshold is $65,100 for married taxpayers filing jointly and $32,550 for single filers. This tax reduction allows certain taxpayers to pay zero federal taxes on long-term capital gains and qualifying dividend income (usually dividends from stock).

Business Losses

2009-01-09T17:34:00.002-07:00

If a business sustains an operating loss, you may be able to benefit from carrying the net operating loss (NOL) into a different tax year - a tax year in which you had or will have taxable income. This will allow you to take a deduction for the current loss against the different year's taxable income. Generally, an NOL can be carried back two years and foward 20 years. The NOL first offsets taxable income from the previous two years and the balance carried forward.