The Federal Tax Credits Blog

Archive for June, 2009

Question: First time home buyer tax credit of $7500?

I qualified for the tax credit/loan for first time home buyers. H&R block told me I would get it between 8-15 days.

Is this the same thing the news is talking about when they mention the new stimulus plan?

Am I going to get this money, or is it still up for vote in the House or Senate?

Answer: This credit if for real, it passed last year. It is not what is being proposed this year.

So if you are supposed to receive the credit, there has been no word from the IRS to date that they will be delays in receiving the First Time Home Buyers credit.

One thing in the new stimulus package being proposed is the repeal of having to repay this credit if you own the home for at least 3 years. Check out the link below.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

Government Will Dominate 2010 Agenda

Democrats in 2009 moved to vastly expand the size and scope of government. But with the public already souring on Washington, 2010 may see limits…

Senator Johnny Isakson on Expanding the Homebuyer Tax Credit

General Motors and Segway have jointly undertaken project Personal Urban Mobility and Accessibility (PUMA; not Puma helicopter) and the result is a two-wheeled city vehicle capable of moving up to 35 miles per hour, and going 35 miles on a single charge. It is an agile and inexpensive transportation, may be for elderly and or  mpaired citizens. PUMA has been unveiled at the New York Auto Show 2009.

PUMA  is a kaleidoscopic mix of technologies; electric drive and batteries; two wheel balancing, all-electronic acceleration, steering and braking; vehicle-to-vehicle communications; and autonomous driving and parking. What is more, this enabling energy vehicle has zero emissions, enhanced safety, seamless connectivity and reduced congestion in cities, reads their press release.

PUMA vehicle is designed to carry two or more passengers. In the age when cities are getting crowded with more cars and shrinking roads, PUMA could change the way we move around in cities. Just imagine safely driving about cities in a stylish hauler designed as you want it and being connected to your friends and family, while consuming clean,  enewable energy, generating zero vehicle emissions, and without the stress of traffic jams? In addition to offering fun way to move about, PUMA promises greener cities, the need of the hour.

PUMA here open the eyes of its viewers by its two-wheeled city vehicle. In Short I can say here PUMA vehicle idea and change this idea in a great innovation, on the other side  products of technology showcase once again feel by wondered  and perfect invention. Seriously PUMA vehicle introduces a new branch on the technology tree.

Decade had plenty of successes and several tragedies

The 10 years sandwiched between Dec.31, 1999 and today proved to be an eventful, productive and devastating decade in the Goshen area.Major building projects improved school and municipal facilities. A significant link of the C.R. 17 corridor came to fruition. Third Street in Goshen was given a facelift. These were some notable accomplishments for the area.

October 16 Biz Minute

Question: What’s the punishment for benefit fraud ?

What would be the punishment for benefit fraud amounting to about £20,000 ??
Ex paying rent and using housing benefit payment for ease as maintenance for bills and food – takes them over the £20 a week threshold for receiving IS.
Receiving working tax credits for 10 months whilst not working, although was used to pay for child care.

What is the procedure once reported?

Thankyou x

Answer: These are the current guidelines on your question.
Benefit fraud
These offences involved the dishonest abstraction of taxpayers’ money, and were not to be treated lightly. However, it should be borne in mind that the crimes are non-violent, non-sexual and non-frightening.
The Court suggested that for average offenders it is advisable to enquire how the Department proposes to recover the loss. The procedure for such a high amount of benefit fraud will be prosecution with possible imprisonment and recovery of overpaid money
Considerations that might affect sentence

1. A guilty plea
2. The amount involved and the length of time over which the defalcations were persisted in (bearing in mind that a large total might in fact represent a very small weekly amount)
3. The circumstances in which the offences began (there was a plain difference between a legitimate claim which became false owing to a change of situation and, on the other hand, a claim that is false from the very beginning)
4. The use to which the money was put (the provision of household necessities was more venial than spending money on unnecessary luxuries)
5. Previous character
6. Matters special to the offender, such as illness, disability, family difficulties etc.
7. Any voluntary repayment of the amounts overpaid
Guideline sentence

Overpayment of less than £10,000
9 -12 months’ imprisonment (after a contested trial)

Organised fraud on a large scale that results in loss of considerable sums

30 months’ imprisonment or more (after a contested trial)

* Deterrence should not play a large part in sentence of this sort in the Crown court.
* A partly suspended sentence might be appropriate where a short immediate sentence is insufficient

Current Sentencing Practice Reference: B6-3.3F

ARRA causes changes in tax code

Editor’s note: Although taxpayers are responsible for being aware of any new tax regulations, either on their own or by consulting a tax professional, this article is intended to provide a brief overview of what’s available.

The Earned Income Tax Credit Obamas Stimulus Welfare Scam

It is interesting to note that what started off as a marketing gimmick has now become an almost permanent part of the credit card industry in America and today 0% APR credit cards can in fact play a vital role in helping a person reduce or get out of debt. What Is A 0% APR Credit Card? APR is known as the Annual Percentage Rate. It is a glimpse of the credit cost. In the old days everybody paid a standard APR based on bank rates. It was usually about 18 per cent. The use of low APR came with the emergence of the monocline bank. These were banks that only issued credit cards and did not take any deposits or issue conventional loans. For their business model to work well large numbers were important for these breed of pioneering bankers and credit cards issuers so low APR teaser rates were successfully used to entice as many new card users as possible. The clamor seemed to have worked so well that today it is difficult to find a credit card company that does not offer some type of incentive APR during the first 6 months or one year.

The more popular credit cards offer 0% APR for the first year. Usefulness Of A 0% APR Credit Card In Reducing Debt A 0% APR credit card can be extremely useful for somebody who wants to bring down to a smaller extent their large credit card debt. For instance if you have a credit card debt that remains at about $10,000 and the APR is 20% then you will end up paying a whooping $2,000 in interest payments alone. With a 0% APR credit card the $2,000 could all go towards reducing that crippling debt. It is therefore clear that 0% APR credit cards can offer much needed financial breathing room for somebody in a serious credit card debt settlement. Consolidation Or Transfer Necessary To Benefit From 0% APR Credit Cards Transferring a credit card debt or credit card debt consolidation are all-important first steps that will need to be taken before a person in deep credit card debt can enjoy the benefits of a 0% APR credit card.

The objective here would be to have the entire person’s outstanding debt payable to one credit card company and at a 0% APR rate. The importance of 0% APR credit cards in helping an individual or business to get out of credit card debt cannot be understated. Although many potential card users place a lot of importance in being able to obtain a 0% APR credit card, the truth of the matter is that it is only attractive and beneficial to two groups of people. Firstly persons able to settle their credit card balances on a monthly basis to whom the 0% APR rate means that their cost of maintaining a credit card is very minimum. Secondly those in debt also benefit because the 0% APR credit card greatly assists them in their efforts to reduce their debt.

House prices climb 5.9% in 2009: survey

Home prices rose 5.9 percent in 2009 as the property market bounced back from heavy falls the previous year despite a record recession, home-loans provider Nationwide said Thursday.

Pay News Network: National Payroll Week, Transportation Fringe Benefits, Tax Compliance Updates

Let’s face it… Getting your taxes right was always important. No matter if you are single, married, have children, don’t have children, work for a large company or are self employed, getting your taxes done right can make a big difference. Having your taxes properly prepared ensures, not only that you get the right deductions and receive the maximum amount of refund owed to you, but it also makes sure that if you owe taxes, you won’t end up overpaying. So no matter which way you look at it, proper preparation of your taxes actually saves you money!

This leads us to the very important question…. “How do you make sure that you get your taxes done properly?” Well here are some things you should consider. First of all, no matter what your filing status is, unless you are a tax professional yourself, it is always best to find a tax professional that you trust to prepare your returns. A lot of people have the perception that preparing and filing their own taxes is easy and it saves them money. In a very few cases, this might be true but for the vast majority of people, preparing and filing your own taxes may actually be more costly. Almost every year, some portion of the tax code changes. If you are not a tax professional you, more than likely, will not be aware of the current years’ changes and not knowing the rules will not be an acceptable excuse should you be audited and mistakes are found. If you accidentally overpay your taxes, that may not be such a big deal, but why take that chance? You want to be sure that you get back every dollar that you are entitled to. In the worst case scenario, should you underpay your taxes; that could lead to expensive penalties, court costs, attorney fees and even jail time. Why run the risk. Tax professionals are kept up to date with all the changes of the tax code and the nuances of the ever changing rules, so they are the best option when it comes to preparing your taxes properly.

If you own a business, the preparation of your taxes gets much more complex. You now have to not only file your personal taxes (which will include salaries, bonuses and any other dividends that you have paid yourself from the company), but also your corporate tax returns. If you own any stocks, bonds, annuities, property such as vehicles, furniture, office equipment, etc or real estate (residential or commercial, personal or investment), then all of these things will have to be taken into consideration as well. A tax professional will be able to help you understand exactly what is and what is not deductible, how much you can deduct for each type of deduction and how best to structure your finances so that you only pay what is rightfully and legally due and no more. They can also advise you as to where your monies should be stored (and how much) for maximum tax benefits and protection.

Especially if you are starting a business, a good tax professional should be one of the first things that you acquire. They can be very beneficial in assisting you with the financial foundation of your business including payroll services, accounting, bookkeeping, sales tax, business planning and more. This will ensure that your business has a solid foundation to build on and give you a better chance for success.

When looking for a tax professional, find out what states they are licensed for. Choosing someone that is not licensed in your state could prove costly. Secondly, ask if the person you are dealing with is a CPA. A Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA.

If you are in the DC / Metro Area JMU Tax & Financial Services would be a great choice for your tax and accounting needs. With 5 locations and staffing fully qualified CPA’s they have the knowledge and experience to assist you with a variety of services.

How to make your college funds adapt to a rocky economy

Parents saving for their children’s college expenses discovered in 2008 that when the stock market crashed, their balances for college went with it. In the year since, stocks and the college funds invested in them have gained back more than a third of their losses.

MeltDown #340 EMERGENCY ECONOMIC STABILIZATION