The Federal Tax Credits Blog

Archive for March, 2008

When trying to avoid defaulting on a student loan, preventive medicine is always best. By exercising early initiative, you can choose from a variety of options that may avoid any negative notations ever being placed on your credit report. Currently, there are a many various programs that can allow you to avoid default.

Deferment: A deferment puts your payments on hold and may be granted for graduate school, half-time study, unemployment, economic hardship or a variety of other reasons.

Forbearance: Forbearance is another option that is available for those who do not qualify for a deferment and allows you to either reduce your monthly payment or put your loan on hold.

Graduated Repayment: As the name implies, this enables a borrower to make smaller payments early in the repayment process when disposable income is typically not as available, and larger payments at a later date when earnings are probably greater.

Income-Based Repayment: Both FFELP and direct lending (FDLP) offer repayment plans that allow borrowers to pay back their loans as a small percentage of their income.

Consolidation Loan: This loan is designed to help borrowers consolidate several types of federal student loans with different repayment schedules into one loan with one monthly payment.

Discharged: A loan may be canceled due to death, permanent and total disability, bankruptcy (in some cases), or inability to complete a program of study due to school closure or false certification by the school.

Under FDLP, if none of the existing repayment options meet your needs, you can seek out a special arrangement by contacting the Secretary of Education, Borrower Service www. ed. gov

Defaulting on student loans should be avoided at all costs, because a default will cause your tax refund to be confiscated, and will prevent you from becoming approved for any other government funded loans. There are several options available that can help you avoid defaulting on the student loans you have, no matter what your financial position is.

Children’s activity tax credit proposed

Ontario has taken an important step towards creating a new, permanent Children’s Activity Tax Credit. The province introduced legislation Monday that would, if passed, establish the new tax credit, which would help parents with the cost of enrolling their children in activities that encourage them to be healthy and active. read more

CONNECT Solution and Core Services Overview

Let’s face it – there will come a time when you’d need replacement windows. You might need to replace your windows because they are broken. An errant pass of the baseball can spell doom for your window. Or maybe a prank gone wrong broke them. Or maybe old age just made it too brittle. Some would get replacement windows because they want to be ready for any high wind situation. So they gear up with windows made specifically for such conditions. Others, on the other hand, replace their windows because they want something new. Some new homeowners find that their windows don’t fit their own unique styles. So they look for replacement windows. Houston is home to many companies that offer window replacement services.

There are many ways to spice up your very own home with replacement windows. After all, there are many styles to choose from and most replacement windows companies in the Houston area offer them. You can have glider windows, the casement windows, double-hung windows, picture windows, as well as awning windows, just to name a few. The materials they use for these windows are usually of top quality. Gone are the days of brittle windows. Thanks to science, replacement windows have greater strength and flexibility now, more than ever. Not only are they very durable, they also provide comfort by blocking out the noise from the outside.

Some people think that the window is the glass part alone but this is not the case. The frame itself plays an equally important role whenever you are installing replacement windows. If you are planning to change your windows and get replacement windows, check out the frame as well. Some frames are made to be hollow. They usually sell this at a much cheaper price. However, you do get what you pay for. The sashes of the windows that are hollow have the tendency to sag over time. When it does, not only do they look unsightly, you also lose the efficiency that the windows have provided before. Therefore, search for a company that offers replacement windows that have their sashes reinforced. The reinforcement not only prevents sagging but also allows you to install stronger locks, providing your home with better protection, no matter how old the replacement windows are.

While the quality of the replacement windows is important, installing them is equally critical. If you are getting new replacement windows, ask the company if they will be sending someone knowledgeable to do the installation. A good looking window would easily lose its value and its beauty if installed incorrectly. Worse yet, you lose the energy savings benefit due to a poorly installed window. If you want to beautify your home and cut down on electricity bills in the process, availing of replacement windows might just do the trick.

Buying a home or making green home improvements? Don’t miss out on these tax credits

(ARA) – A wide range of tax law changes over the last year will result in considerable savings for millions of Americans on their 2009 federal tax returns. Homebuyers and homeowners have some of the most to gain from the changes.

NeatReceipts Scanalizer Professional 2.5 Mobile Scanner and Software $165.99 Amazon.com Product Description Please note: A 3.0 software upgrade for the NeatReceipts Scanalizer will be released on October 15, 2007. You may purchase the software upgrade at the NeatReceipts website: Neatreceipts.com/Upgrade NeatReceipts Version 2.5 Professional is the easiest way for individuals and small businesses to manage expenses, prepare for taxes, create expense reports, and scan busin…

NeatReceipts Professional Mobile Receipt and Document Scanner and Software Combination Version 3.0 $249.95 Amazon.com Product Description NeatReceipts Version 3.0 is the easiest way for individuals and small businesses to manage expenses, prepare for taxes, create expense reports, and scan business cards. But it not all just for business–you can also use Neat Receipts for scrapbooking, archiving family recipes, and other family activities. NEAT Receipts is a portable scanner and software solution tha…

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $8.15 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

Credit Card Collapse

Question: Hybrid tax credit?

How do i get the 2007 Prius tax credit?
I bought two prius one in Feb and the other one in March 2007. I am currently out of the US and i’ll have to do it myself, can you please help me with what forms do i need and what needs to be attached to it. I’ve read several different things online, but nothing concrete and for 2007. If you’ve done it can you please let me know all the details? In case i decide not to ask for that tax credit this year can i do it next year?Thanks

Answer: http://www.toyota.com/prius-hybrid/faq-tax.html

http://www.irs.gov/newsroom/article/0,,id=157557,00.html

http://www.irs.gov/newsroom/article/0,,id=157632,00.html

http://www.fueleconomy.gov/feg/tax_hybrid.shtml

The vehicles have to have been purchased (or financed) new, and not used or previously owned. They cannot be leased (the leasing company is the owner so they get the credit, not you). Also, they have to be predominantly used in the US.

The amount of the available credit for the Toyota Prius depends on the date of purchase. (The hybrid vehicle income tax credits had a sunset/phaseout provision, based on the date after the calendar quarter that a manufacturer sells 60,000 hybrids since the start of the credit (Jan. 1, 2006).) For a Prius bought between 10-1-06 and 3-31-07 like yours, the available credit is $1575 for each Prius purchased. However, the amount can be reduced if you are hit with AMT…

there is a letter-writing campaign to remove the sunset/phaseout provision on the hybrid vehicle tax credit: http://ucsaction.org/campaign/02_01_hybrid_tax_credit

If you are an individual claiming the credit, you will need to fill out IRS Form 8910 Alternative Motor Vehicle Credit: http://www.irs.gov/pub/irs-pdf/f8910.pdf (You will also have to do an AMT calculation as well, which means that you’ll also have to file Form 6251 Alternative Minimum Tax — Individuals, http://www.irs.gov/pub/irs-pdf/f6251.pdf , and that may reduce or even eliminate this credit on you…) This will then go on your Form 1040.

If for a business, you will need IRS Form 3800, General Business
Credit: http://www.irs.gov/pub/irs-pdf/f3800.pdf

You can only take the credit in the tax (calendar) year that you purchase the new hybrid, so if purchased in 2007 you can only file it on your 2007 taxes. You cannot roll the credit over to another year. You could always file a 2007 1040X amended return later, buy why file twice for the same year if you don’t have to?

Your individual state may also offer state tax credits or deductions as
well, so you should also check in with your individual state.

http://www.eere.energy.gov/afdc/progs/tech_matrx.php

http://go.ucsusa.org/hybridcenter/incentives.cfm

Some more links can be found here:

http://autos.groups.yahoo.com/group/toyota-prius/links/Financial_000963256550

(and note that I am not a tax professional, so if you have further questions I suggest that you consult with one!)

Hang up and drive, or else face a fat ticket

A new state law means that on Jan. 1, people who want to drive, dial and talk must use a hands-free accessory

Garmin nüvi 265W/265WT 4.3-Inch Widescreen Bluetooth Portable GPS Navigator with Traffic $139.99 …

Hybrid Tax Credit

Question: First time Buying a home when one spouse has great credit score and the other has bad credit?

My Husband and i are thinking on buying our first home. we are both first time buyers. However he has great credit and i have bad credit about 610 score. I am working on improving my credit. He was in the military so he’s qualify for the VA Loan. We would like to buy a home in MD (Montgomery or PG Co.) area. What is the best way to go about this? Would it be better for us to apply for a home loan together or for him to apply w/o me? or Do they automatically look at my credit? What are best first time buyers program for our situation? And what are the different types of loans available for especially in the state of MD?

PLEASE HELP!!! ANYONE IN THIS INDUSTRY….REALTOR, BROKER, ETC. AND/OR WITH EXPERIENCE!!!!!! ANY ADVICE OR SUGGESTION IS HIGHLY APPRECIATED!!!!

Answer: A VA loan is going to be the best loan program out there. No money down and no monthly mortgage insurance! Your score is not that bad but most lenders have gone to a 620 mid score requirement. The trick here is whether or not your husband can qualify with just his income.
If he needs your income to qualify you will need to have a mortgage banker/broker review your credit to see if there is an option of doing a rapid re-score to bump your scores up by 10 or so points. There are things that can be done to increase credit scores in days not months.

Consult the investing crystal ball

Forbes editors and writers weigh in on investing in the coming year

1st Time Home Buyer Tax Credit Extended For Military

The history of lottery in Canada is a short one but very interesting. Although the lottery is thriving very well right now in Canada, before 1967, it was not allowed by law to buy a ticket of the Irish Sweepstakes. The Government of Canada came up with an Omnibus bill in 1967 which was to take care of all laws which had turned obsolete and outdated. This bill was sponsored by the Minister of Justice – Pierre-Elliot Trudeau. He made an announcement that the government would make changes which were required so that the stand on lotteries in Canada too could become very clear.

While this was going on, the mayor of Montreal – Jean Drapeau, came up with a way to recover the money which had been incurred on the World’s Fair and the subway system which had been introduced out there. It was considered to be a sort of a voluntary tax to be paid by the public. In return for a payment $2 which would be donated, a player could take part in a $100,000 prize draw. Drapeau didn’t consider this draw to be a form of lottery as the winners were given silver bars as prizes. Also the people who qualified in the first draw would then have to answer four questions correctly so that they could actually win the prize in the second draw. The first draw was held on May 27, 1968.

This voluntary tax started a series of debates in Ottawa and Quebec City whether such a type of voluntary tax was actually legal. While the Minister of Justice considered it to be a kind of lottery, Drapeau stuck to his argument saying that it didn’t break any federal law. During this time of heated debates regarding the status of the voluntary tax, the monthly draws continued without facing any problems. It got participation from other parts of the world like Asia, Europe and the United States. Of course it had players throughout Canada taking part in it.

In 1968, the Quebec Appeal Court considered Drapeau’s voluntary tax to be breaking the law. But this verdict was not accepted by the mayor and he decided to appeal to the Supreme Court. Even as the debate continued further, the sales of this voluntary tax reduced drastically. Finally, on December 23, 1969 the government was allowed to run lottery systems by law after a suitable amendment was made in the country’s Criminal Code.

This led the way to the introduction of the first provincial lottery in 1970 – Quebec’s Inter-Loto. Once this happened, the other provinces too came up with their own versions of lotteries. The government of Canada was able to get much needed revenue so that the expenses spent on the 1976 Summer Olympics could be recovered by it. This lottery was known as the Olympic Lottery and run by the Government in the late 1970′s. Right now there are two national lotteries running in Canada – they are the Lotto 6/49, and the Lotto Super 7. Both of them are doing well in Canada.

Canada Afternoon: C$ Ends Higher; Higher Oil Fuels Gain

TORONTO (Dow Jones)–The Canadian dollar rebounded from Wednesday’s drop to finish higher in a light trading session Thursday. The gain was fueled by an increase in the price of oil and an unexpected decline in weekly U.S. jobless claims.

There are two things in life you can depend on: Death and … tax credits?; Canada’s scientific research and experimental development program is … An article from: Canadian Chemical News $5.95 This digital document is an article from Canadian Chemical News, published by Chemical Institute of Canada on January 1, 2002. The length of the article is 1732 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation De…

Intertemporal tax-smoothing and the government budget surplus: Canada and the United States.: An article from: Journal of Money, Credit & Banking $5.95 This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on November 1, 1995. The length of the article is 4866 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser…

Political leaders differ on future direction for the province.(BACK PAGE): An article from: SaskBusiness $9.95 This digital document is an article from SaskBusiness, published by Thomson Gale on May 1, 2007. The length of the article is 804 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Political leaders d…

Garmin nüvi 265W/265WT 4.3-Inch Widescreen Bluetooth Portable GPS Navigator with Traffic $139.99 …

What is SR&ED?