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Wolcott & Associates Latest News
Monday January 25, 2010
Haiti Relief Donations
A new special tax relief provision enacted Jan 22, 2010 allows cash, check, credit card, debit card and text message contributions to qualified charities specifically for the relief of victims in areas affected by the Jan 12 earthquake in Haiti. These contributions may be deducted on either your 2009 or 2010 returns, but not both. Only contributions to these charities after Jan. 11, 2010 and before March 1, 2010 are eligible and must be an itemized deduction.
Thursday December 31, 2009
Foreign Earned Income Exclusion
For tax years beginning in 2009, the foreign earned income exclusion is $91,400. For tax years beginning in 2010, the foreign earned income exclusion is $91,500.
Friday November 6, 2009
First-time homebuyer tax credit
The new law extends and enhances a tax credit put in place last year to encourage home sales. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. The new law also authorizes the credit for long-time homeowners buying a replacement principal residence. The income limitations for homeowners claiming the credit has also been raised.
Tuesday June 30, 2009
New Car Deduction
There is now an 'above the line' deduction for the amount of sales tax paid with a new car purchase. This allows itemizers and non-itemizers to take advantage of this deduction, effective for purhcases after February 16, 2009 and before January 1, 2010.
Tuesday June 30, 2009
Energy Incentives
Several federal tax credits are available for materials purchased for your home. Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for: windows, doors, roofs, HVAC, water heaters and bio-mass stoves. Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for: Geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. There are many parameters regarding the energy compliance to comply with so be sure you know what they are before making your purchase.
Tuesday June 30, 2009
Education Credits
The 2009 Recovery Act expands the current Hope Credit (and renames it the American Opportunity Tax Credit). The credit limit has been raised and has been extended to over four years of post-secondary eduction. Also, part of the credit is now refundable. In short, more people will be qualified to take this credit than in the past.
Thursday January 1, 2009
New Air Passenger Transportation Tax Rates
For the calendar year 2009, the IRS has issued under revenue procedure 2008-66, the amount paid for each domestic segment of taxable air transportation is $3.60. If the transportation begins or ends in the United States the tax is generally $16.10. For a domestic segment beginning or ending in Alaska or Hawaii, the tax applies only to departures and the rate is $8.00.
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