The Federal Tax Credits Blog

Archive for the ‘IRS Credit’ Category

Question: What’s your opinion about Late tax law changing?

Americans who Claim Tax Credits for child care expenses, college costs or home energy updates may have to wait a while for their refund checks from the IRS this year.

What do you think about this?

Answer: There were five tax five forms delayed by recent legislation pertaining to the Alternative Minimum Tax (AMT).

But, that “wait a while” date has already passed. Those taxpayers who were impacted can now file their taxes — effective 11 Feb. There is no more problem.

Local News

WHEELING – U.S. Senate candidate John Raese believes the state and the nation can’t afford two more years of “unchecked power” in the hands of President Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid.

IRS issues guidance on energy credit.: An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on December 1, 2008. The length of the article is 1154 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: IRS issues guidance on energy…

Tax Tips: Time Is Running Out – Three Deadlines

Question: Do I qualify for Obama’s new home buyers credit?

In 2006 I accepted an offer to go in 1/2 on a house that my friend had purchased. The loan, deed, and all other documentation for the home is under his name. Last year I moved from the premises and I am now in the process of buying my own home. For the time I was living in the house (2006-2008) I claimed 1/2 of the mortgage interest on my taxes and received a refund.

At first my tax guy said I was eligible for the new 2009 home buyers credit but now he thinks I might run into issues because I did claim these mortgage deductions on my taxes which shows ownership interest on the property.

I can’t seem to find the answer on irs.gov so I’m hoping someone here can help! Thank you

Answer: Sorry you will not qualify because of your previous home ownership.

Annaly Capital Management Releases Monthly Commentary for October, Providing a Review of the Economy and the …

Annaly Capital Management, Inc. released its monthly commentary for October. Through its monthly commentary and blog, Annaly Salvos, Annaly expresses its thoughts and opinions on issues and events in the financial markets.

First Time Home Buyer Grant and Federal Stimulus $8000 Tax Credit Info

Question: irs tax question..if i had a baby at the end of the year, does the 6 month rule apply for child tax credit &.?

can I file head of household? It says the child has to live with you for for then 6 months, he will only be 5 months old at the end of the year. I know Earned income credit allows you to claim him if he was born anytime before Dec 31st, does the same apply for filing head of household and child tax credit. I cant find this info on their website. thanks

Answer: If your child is born in the tax year, it counts for the whole year. Do not put 5 months, put 12 months (this is in the instructions).

You are qualified for EIC, HoH, child tax credit, Additional child tax credit, etc., as long as you meet the other qualifications.

Editorial: Feds target tax-relief scams

Having moved against scams tied to mortgage relief, credit-card relief and foreclosure relief, the Federal Trade Commission is moving against tax-relief scams. The ads for tax relief are ubiquitous on radio and TV: “We’ve helped thousands of people settle their debts for a fraction of the amount owed.”

NeatReceipts Scanalizer Professional 2.5 Mobile Scanner and Software $184.99 Amazon.com Product Description Please note: A 3.0 software upgrade for the NeatReceipts Scanalizer will be released on October 15, 2007. You may purchase the software upgrade at the NeatReceipts website: Neatreceipts.com/Upgrade NeatReceipts Version 2.5 Professional is the easiest way for individuals and small businesses to manage expenses, prepare for taxes, create expense reports, and scan busin…

NeatReceipts Professional Mobile Receipt and Document Scanner and Software Combination Version 3.0 $249.95 Amazon.com Product Description NeatReceipts Version 3.0 is the easiest way for individuals and small businesses to manage expenses, prepare for taxes, create expense reports, and scan business cards. But it not all just for business–you can also use Neat Receipts for scrapbooking, archiving family recipes, and other family activities. NEAT Receipts is a portable scanner and software solution tha…

TurboTax Deluxe Federal + E-file + State 2011 for PC [Download] $45.98 TurboTax Deluxe: Guides you step-by-step to maximize your deductions…

TurboTax Deluxe Federal + e-File + State 2010 – [Old Version] $3.50 The Intuit TurboTax Deluxe Tax Year 2010 Software walks you through over 350 deductions including mortgage interest, charitable contributions, education, medical expenses and more. Audit Risk Meter™ helps you reduce your chance of an audit. ItsDeductible® helps you accurately value charitable donated items. The Intuit TurboTax Deluxe Tax Year 2010 Software also guides you through changes…

01-29-09 IRS Earned Income Tax Credit

Expanded Recovery Act tax credits help homeowners winterize their homes

WASHINGTON, D.C. People can now weatherize their homes and be rewarded for their efforts.

TurboTax Deluxe Federal + E-file + State 2011 for PC [Download] $45.98 TurboTax Deluxe: Guides you step-by-step to maximize your deductions…

TurboTax Deluxe Federal + e-File + State 2010 – [Old Version] $3.50 The Intuit TurboTax Deluxe Tax Year 2010 Software walks you through over 350 deductions including mortgage interest, charitable contributions, education, medical expenses and more. Audit Risk Meter™ helps you reduce your chance of an audit. ItsDeductible® helps you accurately value charitable donated items. The Intuit TurboTax Deluxe Tax Year 2010 Software also guides you through changes…

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 TurboTax Home & Business was designed to help you take full advantage of your personal and business deductions so you get the biggest tax refund possible, double-checking for accuracy and identifying missing deductions and credits. Includes free Federal E-File. Everything you need to easily do your personal and business taxes. Guides you Step by Step through Self-Employment Income, Deductions,…

Envirosealed Windows – Hints for Homeowners – NAPS-TV

Question: $8000 new home-buyer tax credit applicable if buying from deceased family member’s trust?

My grandmother passed away and I am looking to purchase her house. The house now belongs to her trust, ‘the estate of …’. I will need to take out a $185,000 loan even with a down payment of over 20%.

IRS tax form 5405 states: “Who Cannot Claim the Credit” “You acquired your home from a related person. A related person includes: Your spouse, ancestors (parents, grandparents,
etc.), or lineal descendants (children, grandchildren,
etc.).”

It sounds pretty clear that if she was alive, I would not qualify. But by my interpretation of the wording, I am not buying this from my grandparent, a person; I am buying it from her trust/estate, an entity.

Do I qualify for the credit? If possible, please reference your answer. Thanks in advance!

Answer: The underlying tax law includes 267(b) and 267(c). 267(c) was limited to lineal relationships. 267(b) is below. It appears trust/estate relationships are listed every which way possible. So, no, you don’t qualify.

(b) Relationships
(1) Members of a family, as defined in subsection (c)(4);
(6) A fiduciary of a trust and a beneficiary of such trust;
(13) Except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of such estate.

Tax credit benefits low income

Every year, many working people with low or moderate incomes take a pass on a federal tax credit that could put thousands of dollars back in their pockets.

TurboTax Deluxe Federal + E-file + State 2011 for PC [Download] $45.98 TurboTax Deluxe: Guides you step-by-step to maximize your deductions…

TurboTax Deluxe Federal + e-File + State 2010 – [Old Version] $3.50 The Intuit TurboTax Deluxe Tax Year 2010 Software walks you through over 350 deductions including mortgage interest, charitable contributions, education, medical expenses and more. Audit Risk Meter™ helps you reduce your chance of an audit. ItsDeductible® helps you accurately value charitable donated items. The Intuit TurboTax Deluxe Tax Year 2010 Software also guides you through changes…

TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa…

J.K. Lasser’s Your Income Tax 2010: For Preparing Your 2009 Tax Return $5.00 America’s number one bestselling tax guide offers the best balance of thoroughness, organization, and usabilityFor over half a century, more than 39 million Americans have turned to J.K. Lasser for easy-to-follow, expert advice and guidance on planning and filing their taxes. Written by a team of tax specialists, J.K. Lasser’s Your Income Tax 2010 includes all the outstanding features that have ma…

Santa Clarita Home Buyers: Use IRS Form 5405 To Get Your Tax Credit – Episode 22