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Do I have to File a Tax Return?
Attention: Late Filers!
Haiti Charitable Contributions
Recovery Rebate Credit 
Deductibility of Mortgage Insurance "PMI"

More coming soon for 2009 Tax Year filing!

Do I have to File a Tax Return?

You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. This can get complicated!

Even if you aren’t required to file, here are just a few of the reasons why you may want to do so anyway:

Federal Income Tax Withheld: Even if you are not technically required to file based on your income level, you may want to file anyway to get a refund of Federal Income Tax withheld from your pay.

Making Work Pay Credit: You may be able to take this credit if you have earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.

Government Retiree Credit: You may be eligible for this credit if you received a government pension or annuity payment in 2009.

Earned Income Tax Credit: You may qualify for EITC if you worked, but did not earn a lot of money. With this credit, you could qualify for a tax refund, even if you paid no Federal tax.

Additional Child Tax Credit: This credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.

American Opportunity Credit: This new education tax credit is available for 2009 and 2010. The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.

First-Time Homebuyer Credit: The credit is a maximum of $8,000 or $4,000 if your filing status is married filing separately. The credit applies to homes bought anytime in 2009 and on or before April 30, 2010. However, you have until on or before June 30, 2010, if you entered into a written binding contract before May 1, 2010. If you bought a home after November 6, 2009, you may be able to qualify and claim the credit even if you already owned a home. In this case, the maximum credit for long-time residents is $6,500, or $3,250 if your filing status is married filing separately.

Please note: Some of these credits can be subject to limitations and phaseouts, and difficult to calculate. Be sure to consult your tax advisor.

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ATTENTION: LATE FILERS

We’re now in 2009 filing season, and many of you have not yet filed your 2008 returns. You know who you are!!! 

Failure to file penalties can be costly - you could end up owing more OR you could completely miss out on a refund if you wait too long to file. Also, for potential EIC recipients (earned income tax credit)...you can’t claim the credit without filing...you could be losing money! Call or e-mail us for late filing information.

We’ll send you a free 2008 (or years prior) organizer,  along with 2009, and help you catch up on those returns! We’ve successfully assisted many delinquent filers; let us help you! Please don’t forget...the IRS won’t!

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CHARITABLE CONTRIBUTIONS TO HAITI 1/12/2010 EARTHQUAKE VICTIMS MAY BE CLAIMED IN 2009!

If you are donating to charities providing earthquake relief in Haiti, you may be able to claim those donations on your 2009 tax return.

A new law allows you to claim donations for Haitian relief on your 2009 tax return, which you will be filing this year. The contributions must be made specifically for the relief of victims in areas affected by the January 12, 2010 earthquake in Haiti. To be eligible for a deduction on your 2009 tax return, donations must be made after January 11, 2010 and before March 1, 2010. In order to be deductible, contributions must be made to qualified charities and cannot be designated for the benefit of specific individuals or families. The new law applies only to cash contributions. Cash contributions made by text message, check, credit card or debit card may be claimed on your federal tax return. You must itemize your deductions in order to claim these donations on your tax return. You have the option of deducting these contributions on either your 2009 or 2010 tax return, but not both.

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What is the Recovery Rebate Credit?

The Recovery Rebate Credit is a one-time benefit for people who didn't receive the full economic "stimulus" payment in 2008, and whose circumstances may have changed, making them eligible now for some or all of the unpaid portion.

We will assist you with this determination when preparing your 2009 tax return.

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DEDUCTIBLITY OF PMI (Private Mortgage Insurance)

Beginning January 1, 2007, private mortgage insurance became a deductible expense for new borrowers with less than a $100,000 income. If you have paid PMI, be sure to let your tax preparer know, as this can be a good addition to your Schedule A Itemized Deductions and help decrease your tax liability.

What is PMI?
In a conventional mortgage, a buyer is required to put a 20% down payment based on the sale price of the home. If you did not have the 20% to put down, it is more than likely you are paying private mortgage insurance in your monthly payments. This fee protects the lender in the event of a default and is typically required if you don't meet the 20% down requirement. PMI is paid until enough equity accumulates up to 20% ownership in home, at which time it should be canceled. This helps people who do not have enough cash on hand to put down on a home, BUT it also increases your monthly payments. 

This additional premium added to your payments is now deductible on your Schedule A for mortgage contracts signed in years 2007-2010.

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