The Federal Tax Credits Blog

Archive for January, 2010

Question: Who feels California AB 1634 Is A Good Bill?

This bill requires that all dogs be spayed and neutered. You can apply for and buy an exemption each year only if your dog is pure bred and you can prove the dog is being used for show or in competition.

I just called my local Senator down here in the Bay Area and proposed this — rather than forcing everyone to spay or neuter their dogs in a weak effort to control over-population, why not offer a tax credit to those that submit proof of spay or neuter each year with their taxes?

This assembly bill is penalizing the wrong group.

Call your local Senator and voice your opposition to this bill. The bill only passed the California Assembly by one vote. Let the State Senate know your feelings.

Let me know them as well. Do you feel this is where you want your California Tax Dollars spent and why? Or why not?
This bill died in committee – lack of support.

http://www.sfgate.com/cgi-bin/articl…AGQ8QUL8H3.DTL

Answer: About spending those tax dollars. A tax credit every year to millions of people sounds very expensive. I’m not sure where the politicos get off trying to regulate this anyway.

Obama retools tax credit idea for creating jobs

President Obama wants to offer tax credits to companies that hire new workers, a plan that drew a cool reception from Congress last month despite the nation’s double-digit unemployment rate.

Breaking News: Senate passes health bill

Question: As a Canadian, which stocks’ dividends can be used to receive the enhanced dividend tax credit?

I know that to be eligible for the enhanced dividend tax credit, the company must be Canadian. My concern is that for stocks like Bank of Nova Scotia (BNS) or Advantage Energy Income Fund (AAV), it seems to me that these stocks only pay dividends on the NYSE. The TSE versions of these stocks do not show as dividend-paying stocks. So, my main question is if I own NYSE:BNS, am I eligible for the enhanced dividend tax credit even though the stock is on the New York exchange? Hopefully my question is not too confusing!!

Answer: The criteria is that it is a Canadian Controlled Corporation. Which market it is listed on is irrelevant.

However, make sure that you are buying shares in the Canadian corporation, not the US based subsidiary, which may not qualify.

The reason I say this is that I’ve never heard of a corporation only paying dividends on shares sold on one market, unless that is a different share type (i.e preferred as opposed to common). If it’s one class of shares, it matters not where you buy/sell them.

Hudson Valley CASH Coalition starting its tax lessons

The Hudson Valley CASH Coalition kicked off its annual initiative to provide free tax preparation services to low-income workers and help them apply for the Earned Income Tax Credit.

What would you do with an extra $13?

Question: When you buy a house you are suppose to get a tax credit can anyone explain this to me?

I have heard when you buy a house this year you get a tax credit of $7500 back on your tax refund. Is this true? If not does buying a house help you on your taxes?

Answer: Yes, it is true…..sort of.

If you buy a house before 7/1/09, you can receive a credit of 10% of the purchase price of the house up to $7500. This is a refundable credit meaning that it would increase your refund by $7500.

The bad news is that it is really just an interest free loan. You must pay it back in your future tax returns at a rate of $500 per year for 15 years starting with your 2010 return. If you sell the house before 15, the balance of the $7500 is due on the next tax return.

Outside of this new credit, buying a house is generally a good investment. Mortgage interest and property taxes paid are a tax deduction so yes, buying a house generally reduces your tax liability. However it is not the HUGE tax windfall that some people (real estate agents and mortgage brokers) make it out to be. They will promise you absolutely anything if it gets you to closing.

Volunteers offer tax, credit information

Volunteers will be available starting today to help area residents with their tax questions, including whether they’re eligible for a $5,600 credit. Many people will qualify for the Earned Income Tax Credit for the first time this year because…

$8,000 Home Buyer Tax Credit. Learn how you can get a piece of the pie in 2010.

Question: education deduction better than lifetime credit in my case?

My family is in the 25% tax bracket. My wife is considering taking a couple of classes at a community college to change her career.

If the costs stay under the $4000 limit, am I correct in assuming that the education deduction at 25% is a better option than the lifetime learning credit at 20%?

Answer: Yes; however, the cost of attendance rarely remains below $4000.

Learning tax rules saves time, frustration and earns rewards

Filing your income tax and benefit return is about as much fun as having kids invite you to play Monopoly. Both are long and tedious, and “I’m too busy” is no excuse.

OMG!!! Barack Obama is a socialist! Chris Matthews smacks down Republican Tom ridge

Question: What is the December 1 expiration of the first-time-homebuyer tax credit?

Is it the deadline for closing on the house, or the deadline for making a formal offer, with a deposit, on the house, or what?

Answer: CLOSING.

www.irs.gov
form 5405
first time home buyer’s tax credit

Senate Democrats offer ‘progressive’ agenda

The Democratic leadership of the Maryland Senate announced a wide-ranging session agenda Tuesday morning that includes formation of a Chesapeake Conservation Corps, an income tax checkoff to generate more funding for disabilities programs and greater sharing of information about sex offenders. The nine bills, unveiled at a morning news conference, are all but guaranteed to pass the Senate this …

Recovery: Education Tax Credit-Claim It-Parents January 10