The Federal Tax Credits Blog

Archive for September, 2008

Question: Close don my first home June 4, 2008…eligible for tax Credit?

I singed and closed on my first home purchase in June of 08. I am the only signer and I am engaged not married and may file head of household but I may let her claim my daughter and me just the house. Anyway, I was wonder if I will be eligible for this first time home buyer tax credit that was created last year and how much. I heard it was more like an interest free loan than a tax credit but I am also uncertain of the amount.

Answer: You would quailify. It is a loan to be repaid over the next 15 years. You can take 10% of the purchase price of the house up to $7500

http://www.irs.gov/newsroom/article/0,,id=187935,00.html?portlet=7

Home Prices in U.S. Probably Fell at Slower Pace, Confidence Up

Dec. 29 (Bloomberg) — The decrease in U.S. home prices probably eased further and consumer confidence climbed, showing the biggest part of the economy is recovering heading into 2010, economists said before reports today.

Discussion About $8,000 Tax Credit for First Time Home Buyers

TS: Microsoft .NET Framework 3.5, Windows Forms Application Development, also known as Exam 70-505 is an exam to assess your capability in creating Windows Forms applications on .NET 3.5. This exam is published on February 05, 2009.

The targeted candidates for this exam are Microsoft developers who are using Microsoft Visual Studio .NET 2008 with more than one year experience. Passing Exam 70-505 will give you the credit towards MCTS: .NET Framework 3.5, Windows Forms Applications certification.

Here are some of the technical skills areas where you will be tested in the exam;

So, how to pass Exam 70-505?

1. Hands-On Experience

This exam is meant for all Microsoft Technology Specialist. Therefore, you will need to put a lot of effort in your practical work and improve on your programming skills and techniques. It will be easier for you to pass this exam if you have sufficient hands-on experience in developing window-based application.

2. Study Materials

Besides hands-on practices, you will have to grab some related study materials from the IT store or bookstores and start on your theoretical part. Start doing your revision and all the questions at the end of each chapter.

3. Discuss Online

Some technologists love to discuss their opinions or share some thoughts through IT forums. Browse through all the related forums and join as a member to enhance your knowledge on this subject. As we all know, it is not that easy to have a good programming skills on web-based applications.

A Head Start on Your Taxes

Getting organized is the key to filing an accurate tax return.

Question: When you donate a car, how does the tax benefit work?

I mean lets say you get $500 credit for donating a car and my taxes were $2000. So now when I file for taxes, do I get $500 off my tax returns (which means I pay $1500 in tax) or only a % (which will be your normal tax deduction) of 500 off ( which means I get relief 25% of 500 which is 125) tax returns?

Answer: 1. You donate the vehicle to a registered charity.
2. The charity sells the vehicle.
3. The charity sends you a letter telling you how much they received.
4. You can claim an itemized deduction for the amount in the letter.

If you don’t itemize deductions, you get zero benefit. Itemizing is only worthwhile if your total itemized deductions exceed your standard deduction. The standard deduction for a Single filer in 2006 was $5,150 and for 2007 it will be $5,350.

If you do itemize, deductions reduce your taxable income. If the charity sold the car for $500, your taxable income would be reduced by $500. To determine your benefit, multiply that by your marginal tax rate — the rate that the last dollar of income was taxed at. Rates vary from 10% to 35% depending upon your total taxable income. So, if you are in a 15% tax bracket (likely with only $2,000 in total tax liability) the total value of the deduction would be 15% of $500 or $75.00

Vehicle tax deduction ends Thursday

It’s a fact: If you buy a car today or Thursday, you’re going to save more money than if you wait a day or two.

William Hesch WCPO 8AM 3 8 09 American Recovery and Reinvestment Act of 2009

Question: How do I amend my *2006* tax return to include form 8880?

I had a windfall of $10000 in March of 2007. I split it into two TD Ameritrade accounts: One $4000, the other $5500 (I spent $500 on toys.) My intention was that the $4000 be to a Roth IRA. Today, I found out I put the $5500 in the Roth IRA. Yes, I am that incompetent. No, wait, more incompetent, because I’ve already filed my 2007 returns. I reported a $4000 contribution on my Roth and earned the $200 retirement savings contribution credit on my 2007 return. I think the thing to do to square things with the government is to amend my 2006 return to include a $1500 contribution to my Roth, which also gives me a retirement savings contribution credit. This is legal, right? Because I made the contribution before april 15th, 2007? How do I do it? What forms do I need? What if the contribution credit earns me negative taxes? (I didn’t make much money in 2006)

Answer: You over-funded your ROTH IRA by $1500 ($500 of over age 50)
As a result, you owe a 6% penalty on that excess for 2006. You need to report that on Form 5329, and attach it to the amended return , Form 1040x.
You will owe for 2007 as well. But, you can avoid that result if you withdraw the $1500, plus earnings, before 4/15/08.

Take a look at IRS PUB 590 for specifics and nitty gritties.

Charity deduction deadline approaching

Even though April 15 is still more than three months away taxpayers can’t wait much longer if they …

Tax Deduction Tips : IRA Tax Penalties

Question: Needing a “Rough Estimate” on installing new central heat and air?

I was wondering if anyone could tell me about how much it would be to install central heat and air to an older house?
The house is 1263 sq feet, one level, and does not currently have central heat and air…there is only a floor furnace in the living room and the side bedroom has a wall heater. I would really like to purchase a unit that is Energy Star so that my husband and i can possibly get some tax credits and/or rebates.
There would definitely have to be some duct work done, and also replace some windows.

I am aware that without actually being able to view the house, it does make it hard. However i was just kind of looking for a ballpark price.

We live in Texas where the yearly average weather is about 89.(not sure if that’s irrelevant?)

Thank you so much for your time!!

Answer: is your house on a crawl space or slab? i don’t know what the prices are like in texas, but here in michigan a job like that would run in the area of $7000. since you currently have no duct work installed, that would have to be fabricated and installed, either in the attic or crawlspace, along with the furnace. of course without being able to see the house and the specific situation, it is hard to know exactly what you need.

Stumpf: Energy saver rebates available for qualifying home upgrades

Stimulus is providing the funds.

ACFOOL.com Tax credit 95% Gas Furnace