The Federal Tax Credits Blog

Archive for April, 2010

Question: Question regarding Injured Spouse form?

I have recently found out that my husband has defaulted on a student loan and the irs will keep our tax return. We have since called the lender and began a repayment plan to rehabilitate his loan. I was told that we can file an injured spouse form to be able to get some of our return back. I (the injured spouse) made all of the our income for 2009, but live in AZ (a community property state)…

If I file with the 8379 form, will they keep EIC? child tax credit (we have 3 children)?
Does everything get split 50/50?

I was also advised to file an extension and wait til the loan has been rehabilitated to file our taxes…
Will the offset be removed once the loan has been rehabilitated?
How long will it take for the offset to be removed from my husbands SSN?

Answer: When I filed an injured spouse claim last year in TX(another freaking community property state) they split our refund down the middle. I didn’t work(I was the injured spouse) and we got exactly half of the original refund. They may allocate it differently since you are the one with all the income but that is what happened in my experience

E is for extension as Tax Day comes and goes

Maybe it’s not as certain as death and taxes, but post-season tax work continues for millions out there. If you had to file an extension on your taxes, you were far from alone. Through early April, 2.3 million fewer returns were filed with the IRS than last year, meaning more later filers.

Personal Financial Advice : How to File a Tax Extension With the IRS

Will Perry Turn New Orleans Mayoral Run into Louisiana Legislative Success?

As a Mayoral candidate, James Perry turned some political heads with fresh ideas that promised to reform the moribund city government. He hopes to bring the same spirit to Baton Rouge as a candidate for the District 93 seat on May 1st.

Senate Session 2010-04-15 (17:45:10-18:53:20)

Question: Do i have to repay my 2009 first time homebuyers tax credit If I go to school in a different state?

I am planning to go to school in a different state and return after my college is finished, would it still be considered my principal residence for tax purposes or will I have to pay back the tax credit?

Answer: If the home is still your legal residence, no one else lives there, and you return there for vacations and summers, you are fine. If you change your residence and stop using the home personally as your permanent home, you must repay it.

Jay Nixon calls for cuts in Missouri’s tax credit program

JEFFERSON CITY — Missouri Gov. Jay Nixon mobilized educational leaders Wednesday to put pressure on the Legislature to revive his moribund proposal clamping down on state tax credits.

Crist Signs Voucher Bill

Question: Is there a tax credit for insulating a business office (Energy Efficiency Credit)?

The office where I work is thinking of addinginsulation to our office building. Is there any tax credits we can take advantage of by doing this?

Answer: Yes.

Taxpayers may expense the cost of energy efficient commercial building property placed in service in calendar years 2006 or 2007. The deduction for any building for any tax year can’t be more than the excess if any of
1. $1.80 x the square footage of the building and the
2. deductions allowed under sec. 179 depreciation deductions for earlier years.

Energy efficient commercial building property is property that
1. is depreciable or amortizable
2. installed on or in a building located in the US
3. certified as being installed as part of a plan that will meet a 50% energy use reduction test described in code sec. 179D(c). In some situations where the 50% test isn’t satisfied, a partial deduction may be permitted.

Home tax credit deadline looms: Sellers see flurry in waning weeks

Apr. 21–Home buyers seeking to take advantage of the federal tax credit have less than two weeks to sign a contract on a house and some area builders and Realtors have seen a boost in sales as the deadline approaches.

Zandi Sees `Weaker’ Home Sales After Tax Credit Expires: Video

Question: Can anyone prove that Reagan’s tax cuts were a major factor in the economic recovery of the late 80s?

I know that people state that Reagan cut taxes and credit it for the recovery. I’m asking if anyone can prove that the tax cut lead directly to the recovery, and it had nothing to do with the market self correcting itself?

Answer: Not one person can prove Reagan’s tax cuts were a major factor in the economic recovery of the late 80s.

Ronnie Burns in hell as wee speak.

Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

RISMEDIA, April 23, 2010—Buyers responding to the home buyer tax credit and favorable affordability conditions boosted existing-home sales in March 2010, marking the beginning of an expected spring surge, according to the National Association of Realtors. Existing-home sales, which are completed…

Gov. O’Malley Announces Job Creation Tax Credit – 3/26/2010