The Federal Tax Credits Blog

Archive for December, 2008

Question: Question regarding the new Tax Stimulus program?

Just wondering if anyone knows how much a family of 7 (2 adults, 5 children) with an AGI of approxmiately $65,000 and a taxable income amount of $30,000 and child tax credit of $3400 might get back in the stimulus package. I have been on the government website and all they do is give you the “normal” 2 adults 2 kids scenarios and even those are a little confusing.

Answer: With that amount of taxable income, you will pay over $1200 in 2007 Federal Income tax, so you will get a $1200 rebate for the married couple. Since you qualify for a rebate, you will receive an additional $300 for each dependent child under 17.

Use the Kiplinger rebate tax calculator (link below) to compute your rebate.

Traditional IRA vs. Roth IRA

There are so many things happening in the tax/financial world, I hardly know where to begin. This year is the…

Gangs and President Obama, CGreenlee, RBritton, and CHodge1

Question: Will they change the first time home-buyer tax credit?

What do you people think, will they increase the first-time home buyer tax credit with the new stimulus packages (if it ever actually gets passed)?

If they do, I bought my first house on January 23, would I still qualify for the larger amount even though I closed before the law passed?

I’m waiting on them to figure that damn thing out so I can file my taxes.

Answer: I just read that they may not include that credit after all… It’s a way to cut some of the unnecessary stuff out. (go figure, something that would help real people) I don’t have a good answer for you, because I am wondering the same thing. I bought in December.

The original plan is a $7500 tax credit for people who buy your first home between April 8, 2008 and before July 1, 2009. It must be paid back over 15 years.

The stimulus package was supposedly going to make it a true credit vs. a loan. Keep your eye out for details just in case it goes through. Then it would be worth taking.

Or, put the $7500 into a savings account that earns 3% for 15 years. Take 500 out per year to pay it back. At the end, you will have approximately $1761 paid to you in interest.

Michigan continues tax credit for donated vehicles

Michigan motorists who donate vehicles to charities can continue claiming a state tax credit.

Understanding the First Time Homebuyer Tax Credit

Question: My employer is embezzling from her own company, among other things, can her employees be held liable?

This woman owns small business, is in debt up to her eyeballs, files false time cards for volunteer employees and takes the checks. She removes money from the till on a regular basis, has different accounts that she moves money around in to keep from paying taxes on. She also smooth talks her way into and out of situations and winds up with either more money or more credit she doesn’t pay back. She lies to her regular employees about the situations, why they aren’t getting paid, or just doesn’t bother to show up or say anything when she is there.
Her latest is she filed a police report saying she was robbed, though there was no forced entry, when she or her latest husband likely took it, as somehow the drawer receipts were neatly filed away. Can employees be held liable, what can a person do here? When it starts looking bad for her, she starts pointing the finger at others, bad mouthing them behind their back.

Answer: Employees can’t be held liable if they aren’t involved and don’t benefit from the scamming. (There are a handful of exceptions, like lawyers, but they don’t apply here.)

She can accuse and point fingers, but without any evidence, no one is actually going to lay charges.

You’re fine.

Hollywood South moves a little to the west

L’Observateur LAPLACE – As the curtain closes on 2009, officials with state and local offices for film and television say Louisiana is on track to break records for film and television production work following a slow start.

Small-Wind-Turbine-High-Winds.mov

Question: Biodiesel tax credit?

I’m very confused about the tax credit the government is giving to people who use/manufactur biodiesel? Who gets it, how, and why, and how much? If anyone can clearly explain all of this I’d highly appreciate it.

Answer: It doesn’t appear to me that there is much incentive for the home distiller to make bio-diesel from recycled oils…

Biodiesel Credit Highlights of HR 4520

Creates a new excise tax credit for biodiesel: $1.00 per gallon for biodiesel made from virgin oils derived from agricultural products and animal fats, and $.50 per gallon for biodiesel made from recycled oils. The credit applies to pure B100 and pro-rated to blends based on percentage. The blend credit thus works out to one penny per percent of biodiesel from virgin oils in a fuel blend, and one-half penny per percent for recycled oils.

Allows the credit to be claimed for both taxed and tax-exempt fuels.

Streamlines the tax structure and refund system to encourage blenders to blend biodiesel as far upstream as possible, allowing more biodiesel to be used in the marketplace. Tax refunds are to be paid within 20 days of blending.

Any taxpayer eligible for the biodiesel tax credit will be able to file for a refund for every gallon of biodiesel used in the marketplace without regard to the income of the taxpayer or whether the fuel is used in a taxed fuel or tax exempt fuel.

The credit is taken by the blenders/distributors. It is then up to them to decide how to use the extra money. The industry in general hopes than competition will drive the blenders to pass the credit along to the consumer, resulting in lower biodiesel fuel prices.

Minus Biodiesel tax Credit, Minn. Pump Prices to Rise

The U.S. Senate failed to extend a $1-a-gallon biodiesel tax credit that expires Thursday, according to the St. Paul Pioneer Press in St. Paul, Minn., leaving the industry in doubt about its future.

Grassley Weekly Video Address: Biodiesel

Question: UK question: Claiming tax credits as a working holiday maker?

Anyone familiar with this system, please help.

I have lived in the UK for 13; 5 as a child when my parents were working here as a nurse and accountant and then I have lived here for 8 years as an adult, student, work permit holder and working holiday holder.

I have a 2 year old daughter (not british) and Childcare costs are very high. I am a tax payer and I understand tax credits are available to help people who are working to cover their childcare costs. I am not technically a british resident so am I eligible for these credits.

Answer: Need to know your nationality in order to answer the question. If you are an EU citizen then you may be able to Claim Tax Credits however, as you have said that you have been a work permit holder I suspect that you are not an EU citizen. Hence it depends on your current immigration status. Have a look at the visa in your passport. If it says ‘no recourse to public funds’ then you cannot claim any benefits for yourself.
If you have been here continuously on non-temporary visa’s (e.g. work permit) for 5 years then you can apply for ’settled status’ (also called Indefinite Leave to Remain). Once you have ILR then you can claim benefits.
However for advice specific to your case I suggest that you go and see your local Citizens Advice Bureau who will be able to explain what options are open to you.

New Year money makeover: how to save £4070 a year

Figures from moneysupermarket.com show on average people could save £4,070 in 2010 by reviewing their finances.

Protest March Embankment to Green Park 11th April 2009 Tamil Genocide (UK)