Hope and Lifetime Learning Credits: For 2008, the amount of a Hope or Lifetime Learning Credit is phased out (gradually reduced) for those with a modified adjusted gross income (AGI) between $48,000 and $58,000 ($96,000 and $116,000 for joint returns). Those with a modified AGI of $58,000 or more ($116,000 for joint returns) cannot claim Hope or Lifetime Learning Credits.
Hope Credit: Beginning in 2008, the amount of the Hope credit (per eligible student) is the sum of:
1. 100% of the first $1,200 ($2,400 for students in a Midwestern disaster area) of qualified education expenses paid for the eligible student, and
2. 50% of the next $1,200 ($2,400 for students in a Midwestern disaster area) of qualified education expenses paid for that student.
The maximum amount of Hope credit in 2008 is $1,800 per student ($3,600 for students in Midwestern disaster areas).
Tuition and Fees Tax Deduction: Congress extended this tax benefit until Dec. 31, 2009 as part of the $700 billion economic stimulus package.
Lifetime Learning Credit:
• For 2008, students in a Midwestern disaster are eligible for up to $4,000 - other students are eligible for up to $2,000
• The definition of qualified education expenses is expanded for Students in Midwestern disaster areas to include books, supplies, room and board, and additional expenses for special need students.
Saturday, June 27, 2009
Thursday, June 25, 2009
IRS WHISTLEBLOWERS
An IRS district or service center director may approve a reward for information regarding underpayments of tax. The director decides whether the amount of the reward is adequate compensation in each particular case. IRS Publication 733 provides that the amount of reward will be determined as follows:
“For specific and responsible information that caused the investigation and resulted in recovery, the reward will be 10% of the first $75,000 recovered, 5% of the next $25,000 and 1% of any additional recovery. The total reward will not be more than $100,000.”
For more information http://www.taxwhistleblowers.org/
An Information Resource for Tax Whistleblowers
If you have information regarding underpayment of federal taxes, you could be entitled to a reward. Taxwhistleblowers.org is a free information resource that provides information to private citizens on the rewards available to those who report underpayments of tax to the United States government.
Important Development - New IRS Whistleblower Program
On December 20, 2006, the President signed into law new legislation that dramatically strengthens the IRS's whistleblower program. Under the new law, qualified whistleblowers will be entitled to awards of up to 30% of funds that are recovered by the IRS based on information provided by whistleblowers.
Form 211 Claims for Reward
The Form 211 program permits whistleblowers to request rewards from the IRS after reporting information about individuals or entities who have underpaid taxes. Notably, however, payment of any reward by the IRS under the Form 211 procedure is within the government’s discretion and cannot be compelled by the whistleblower.
Special Agreements
In addition to its Form 211 program, the IRS also has a lesser known program commonly referred to as its Special Agreement program, which permits whistleblowers to enter into contracts with the IRS before they provide detailed information about the subject taxpayer and their alleged tax violations. Special Agreements, however, are typically used only for cases involving large amounts of underpaid taxes.
Please be advised that this website is a general information resource, and it is not intended to provide legal advice in your particular case. You should consult with an attorney to obtain legal advice regarding your matter.
“For specific and responsible information that caused the investigation and resulted in recovery, the reward will be 10% of the first $75,000 recovered, 5% of the next $25,000 and 1% of any additional recovery. The total reward will not be more than $100,000.”
For more information http://www.taxwhistleblowers.org/
An Information Resource for Tax Whistleblowers
If you have information regarding underpayment of federal taxes, you could be entitled to a reward. Taxwhistleblowers.org is a free information resource that provides information to private citizens on the rewards available to those who report underpayments of tax to the United States government.
Important Development - New IRS Whistleblower Program
On December 20, 2006, the President signed into law new legislation that dramatically strengthens the IRS's whistleblower program. Under the new law, qualified whistleblowers will be entitled to awards of up to 30% of funds that are recovered by the IRS based on information provided by whistleblowers.
Form 211 Claims for Reward
The Form 211 program permits whistleblowers to request rewards from the IRS after reporting information about individuals or entities who have underpaid taxes. Notably, however, payment of any reward by the IRS under the Form 211 procedure is within the government’s discretion and cannot be compelled by the whistleblower.
Special Agreements
In addition to its Form 211 program, the IRS also has a lesser known program commonly referred to as its Special Agreement program, which permits whistleblowers to enter into contracts with the IRS before they provide detailed information about the subject taxpayer and their alleged tax violations. Special Agreements, however, are typically used only for cases involving large amounts of underpaid taxes.
Please be advised that this website is a general information resource, and it is not intended to provide legal advice in your particular case. You should consult with an attorney to obtain legal advice regarding your matter.
Thursday, June 4, 2009
Bookkeeping ~ The Cash Flow Lifeline
Operating a successful small business in today's fast-paced economic climate can be an exciting, complicated and expensive endeavor. On the surface, it seems simple, without proper bookkeeping, your flourishing company can take an abrupt dive towards bankruptcy.
This is why accounting is a key component in any small business's success. It should play a role in every financial decision you make ~ from purchasing vehicles, equipment and supplies to increasing production, stocking inventory and keeping track of payroll and expenses.
But if you, like most people, lack an extensive background in bookkeeping where do you begin? Balanced Book Company has the solution—giving you the tools and the information you need to keep your financial records in check, while aiding you in making the most of your company's cash flow.
We do your Bookkeeping, Prepare your Taxes and manage your Payroll at a Fraction of the Cost! We will train you in any and all facets of Intuit’s QuickBooks Bookkeeping software programs.
Balanced Book Company Provides the Pillars of Support!
This is why accounting is a key component in any small business's success. It should play a role in every financial decision you make ~ from purchasing vehicles, equipment and supplies to increasing production, stocking inventory and keeping track of payroll and expenses.
But if you, like most people, lack an extensive background in bookkeeping where do you begin? Balanced Book Company has the solution—giving you the tools and the information you need to keep your financial records in check, while aiding you in making the most of your company's cash flow.
We do your Bookkeeping, Prepare your Taxes and manage your Payroll at a Fraction of the Cost! We will train you in any and all facets of Intuit’s QuickBooks Bookkeeping software programs.
Balanced Book Company Provides the Pillars of Support!
Wednesday, June 3, 2009
Stimulus Payments and Tax Law Changes
Taxpayers were instructed to retain a copy of the notice that included the stimulus payment for purposes of computing their 2008 tax returns. The estimated payments were computed based on information from the 2007 tax return. Double check the notice to be sure that the estimated stimulus payments were computed correctly. Any shortfalls can be recovered in 2009 when filing the 2008 return.
Family additions born in 2008 would not have been considered in the estimated stimulus payments. Do not overlook claiming the potential $300 refundable credit for each child.
Taxpayers filing 2007 returns after the extended October 15 due date are not entitled to receive a stimulus payment in 2008 until after they file their 2008 tax return.
Taxpayers who reside in federally declared disaster areas have an extended due date beyond October 15. For example, victims of Hurricane Ike have until January 5, 2009, to file their 2007 income tax return. There again, taxpayers will not receive a stimulus payment until after filing their 2007 return.
Congress passed the Mortgage Forgiveness Debt Relief Act of 2007 in December of that year to assist taxpayers avoiding foreclosure procedures and those afflicted as a result of the decline in the housing market. The law change excluded up to $2 million of cancellation of-debt income related to their mortgages on their principal residences, not including second or vacation homes.
The law only applies to acquisition indebtedness and refinanced debt that does not exceed the amount of acquisition refinanced debt.
Amendments to the Mortgage Forgiveness Debt Relief Act of 2007, passed in July of 2008, created a first time home buyer credit of up to $7,500 to eligible taxpayers. The credit is refundable and is repaid ratably in future years (up to 15 years for quailing taxpayers with full credit). Repayments do not begin until 2010 for homes purchased in 2008. This is an interest free loan for taxpayers facing the tight credit market that currently exists. In addition, some tax incentive credits for homes purchased in 2009 may not have to be repaid.
Please be advised that this website is a general information resource, and it is not intended to provide legal advice in your particular case. You should consult with an attorney to obtain legal advice regarding your matter.
Family additions born in 2008 would not have been considered in the estimated stimulus payments. Do not overlook claiming the potential $300 refundable credit for each child.
Taxpayers filing 2007 returns after the extended October 15 due date are not entitled to receive a stimulus payment in 2008 until after they file their 2008 tax return.
Taxpayers who reside in federally declared disaster areas have an extended due date beyond October 15. For example, victims of Hurricane Ike have until January 5, 2009, to file their 2007 income tax return. There again, taxpayers will not receive a stimulus payment until after filing their 2007 return.
Congress passed the Mortgage Forgiveness Debt Relief Act of 2007 in December of that year to assist taxpayers avoiding foreclosure procedures and those afflicted as a result of the decline in the housing market. The law change excluded up to $2 million of cancellation of-debt income related to their mortgages on their principal residences, not including second or vacation homes.
The law only applies to acquisition indebtedness and refinanced debt that does not exceed the amount of acquisition refinanced debt.
Amendments to the Mortgage Forgiveness Debt Relief Act of 2007, passed in July of 2008, created a first time home buyer credit of up to $7,500 to eligible taxpayers. The credit is refundable and is repaid ratably in future years (up to 15 years for quailing taxpayers with full credit). Repayments do not begin until 2010 for homes purchased in 2008. This is an interest free loan for taxpayers facing the tight credit market that currently exists. In addition, some tax incentive credits for homes purchased in 2009 may not have to be repaid.
Please be advised that this website is a general information resource, and it is not intended to provide legal advice in your particular case. You should consult with an attorney to obtain legal advice regarding your matter.
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