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Quick Tax Tips for 2008 and the Current 2009 Year
2009 at a Glance:
- $7500 refundable tax credit for first time homebuyers (haven’t owned a
home for the last 3 years) expires on 7/1/09.
- Max out your 401k (16,500 or $22,000 if 50 or older) and IRA
($5,000/$6000.
- Benefit from the retirement plan saver’s credit available to lower
income taxpayers. If you are over 70 ½ stop or lower required distributions
from your retirement plans until the stock market improves. A new law just
passed to allow this thru 2009.
- Keep records of charitable contributions. The IRS has cracked down on
this.
- Set up a NYS College Savings account for your kids, grandkids, or
whomever.
- Beware of phone emails. The IRS does not send e-mails about your
personal refunds or tax situation.
- Standard Mileage rate is 55 cents per mile for ’09.
- Social Security max is now $106,800.
For 2008:
- Open a folder to organize your 2008 tax documents as they arrive. You
can dispose of 2005 tax returns and prior (unless you underreported more
than 25% or your income – then the IRS can go back further).
- You only have until March 15th to get reimbursed from your 2008 flexible
spending accounts before you lose it.
- E-file your taxes like the majority of Americans. The error rate of an
e-filed return is less than 1 percent compared to 20 percent for a paper tax
return.
For a more detailed tax newsletter
click here
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