The Federal Tax Credits Blog

‘Now’s the time to look at this’

Dan and Leia Armstrong of Carlisle are looking to build their first home in northern Dauphin County, and they want it to be as cost- and energy-efficient as possible.

Question: Lifetime Learning credit?

I used H&R Block online to file my taxes. When I got to the education credit part it said that I can get a credit of $393. But towards the end, I received a message saying my refund limit went from $1000 to $393. It still showed $900 refund but the education credit was not showing up. Just the federal income tax that was withheld. Is there a way around to get my refund of $900 plus the education credit? I would really appreciate help ASAP! Thanks!

Answer: The education credit is a “non-refundable” credit. If your tax bill is $0 and you got all of your withholding back (the amount in box 2 of your W-2), there’s nothing left to refund.

The $393 credit only brings the tax bill closer to zero. It can’t take it below zero.

Free clinics offer tax help

I’ll be honest with you. I’m no good with numbers. It’s probably no coincidence that as I aspired to being a writer and journalist, I was also taking calculus in high school. No surprise, then, that during tax season I usually get my taxes prepared by someone else.

Indiana Tax Preparer Filed False Claims for Refunds

Willis Lease Finance Reports 2009 Net Income of $22.4 Million

NOVATO, Calif. — Willis Lease Finance Corporation , a leading lessor of commercial jet engines, today reported strong revenues, net income and earnings per share in 2009, reflecting continued growth in its lease portfolio, higher maintenance reserve revenues and lower borrowing costs.

$89,000 – 3160 John R St, Detroit, MI

Question: Should I use my home equity line of credit to pay off my car loan and part of my student loan?

By using the HELOC, it’s going to free up several hundred dollars per month, and I can claim it as a tax deduction at the end of the year. On the other side, I’m eating up a sizable amount of home equity by doing so. I’m planning to pay them off either way–I can do it now with the HELOC, or after I sell my house, with the cashed in equity. Which route should I go? Does it make a difference?

Answer: Generally speaking, debt is debt, so whether it’s debt on your HELOC or a student loan or car doesn’t matter. Using your HELOC is usally a better deal because the rates are lower and as you mentioned, you can deduct the interest. The only thing I would caution is if the property values in your area are going down, you may not want to extend your HELOC too much and end up with either no equity or oweing more than the house is worth.

Top Scoops

On Feb 8 Scoop published my article Personal Income Tax Reform in New Zealand , which looks at taxes for individual New Zealand wage and salary earning tax residents.

PRIVATE STUDENT LOAN CONSOLIDATION (No Credit Check)

Question: Why am I getting a $900 recovery rebate credit in turbo tax?

my wife and i go married in june of this year. I recieved a $300 rebate credit this year but my wife didn’t because she had no income. When filling out my taxes, it asked to place the rebate credit amount. I placed 300 in the box and turbo tax some how calculated we should get a rebate credit of $900, how is that and why? Thanks!

Answer: Last year’s stimulus payment was part of this years Recovery Rebate. Married couples are eligible to receive up to $1,200 as a refund. Since you only got $300 last year, it gave you the remainder of the rebate, which is $900 for this year.

State of Ohio fails to build on northwest Ohio solar success

By JOE VARDON BLADE PROJECTS EDITOR First of three parts Toledo and its northwest Ohio neighbors have missed out on coveted manufacturing jobs in the solar industry because of a failure by state officials to attract companies with tax incentives or create a viable market for solar panels in Ohio, a Blade investigation shows. Since 2007, thousands of those jobs have gone to states where companies …

GET YOUR TAX REBATE: BEWARE OF REBATE SCAMS (ASL, CAPTIONS, AND AUDIO)