The Federal Tax Credits Blog

Question: Is the 2008 stimulus being taken back in 2009?

I’m a professional tax payer, and I just got done with classes. Guess what? The practice scenario in which the same couple had a 2000 child tax credit for two children, only had 1000 child tax credit. And the $1800 stimulus payment that they got prior to the new law was taken back on the 2009 tax form, reducing their federal refund from $2000 to $1200. In previous questions, it was said that this wasn’t the case. I know differently. What you need to be asking your representative is, “You got $700 billion bucks from us, so why are you taking the stimulus payment back????”

Answer: If Obama is elected he will take back much more than that from anyone who works.

Okla. to receive $2.6B in stimulus funds

Associated Press – January 2, 2010 2:15 PM ET OKLAHOMA CITY (AP) – Oklahoma is expected to receive more than $2.6 billion from the federal stimulus package, along with additional grant funds in…

2009 Housing Stimulus Tax Credit Overview

Paying property taxes to your city, town, or county is part of a home owner’s responsibilities. Property taxes are computed based on your home’s assessed value. Don’t get confused because the assessed value and appraised value are two different things. To make it simple, the appraised value is simply the market value of a property in today’s market while the assessed value is used by taxing authorities to put a dollar value in the property for taxing purposes.

Most states do offer a property tax reduction for Veterans.

Though each state has its own guidelines, most states measure property taxes by mils (one mil means $1 for every $1,000 value of a home). So for example, if you have a house worth $100,000 with a 3.5 mil property tax the owner will have to pay $3.50 for every $1,000 in value or simply $350. However, regardless of how these taxes are computed, a home owner owes this amount to the government. If you have a mortgage, some lenders require monthly property tax payments as part of the mortgage payments. If this is not your case, then your town will ask you to pay property taxes every 3-6 months wherein you have to pay in full on its due date.

Check with your local taxing authority to find out more.

However, under certain circumstances, more than 30 states have given local property tax relief to veterans. Though not all towns or cities participate, most of the time, veterans can receive a break on property taxes. Property tax relief may come in different forms – like exemptions, abatements, frozen assessment rates, or direct rebates on taxes. New York, for instance, has a number of property tax exemptions for veterans. In South Carolina, a veteran receives an exemption on the first $50,000 of the assessed value. In Maryland, veterans with service-related disabilities receive full exemption from paying property tax liability.

Since each state, town, or city’s guidelines on property tax exemptions for veterans vary, it is best to consult someone from your state’s Department of Revenue office to learn more.

In order to take advantage of the deals in real estate and the tax credit for first time homebuyers, many home buyers are settling for houses that may not completely meet their needs. However, if a home doesn’t fulfill your space requirements there are some relatively inexpensive options that you can undertake if your new home has a garage that you can work with.

Most homes have either an attached or an unattached garage; the type of garage that your particular home has will likely somewhat dictate what type of room that you can renovate it into. A home that has a garage under the main portion of the house would probably be a better candidate for a shop or play room than for a new kitchen. Likewise, if your home has a garage that is unattached to the house it could make for a lovely guest room, art studio, or a home office, particularly if you need some privacy to work in.

A garage renovation is an interesting solution to a problem that is often solved by building an extension on a house. However, because the framework is already complete, a garage renovation can save you a lot of money and maintain the original silhouette of the home as well. Home add-ons can really give a home an odd look unless they’re well integrated into the original style of the home.

The considerations that you might want to take into account if you’re considering renovating your garage include an assortment of possible issues. If you renovate your garage into another room will you have someone safe to keep your vehicle? Some homeowners have built an unattached garage on their property in a better location for their car after renovating their existing garage.

If the existing garage is dark and windowless you will need to install some windows, skylights, or maybe glass French doors in the place of the original garage door. Your garage will likely require proper insulation as well as an insulated sub floor over the concrete slab. A garage renovation also usually involves having extra wiring done for outlets, appliances, or a home theatre system if you’re making the garage into a movie room.

Using this existing space can save you a lot of money while you increase the living space of your home and you can add some good value to your new home fairly easily. Don’t be afraid to buy a bit smaller than your needs require and adapt the space to fit your needs.

2009 Year in Review: FRANKLIN COUNTY’S TOP STORIES

Franklin County had its cake and its economic problems in 2009. It was the county’s 225th birthday year, and Ben Franklin impersonators were everywhere.

Retrofitting for Energy Efficiency and New Jobs

As President Barack Obama pushes Congress to pass a healthcare reform package in the next two weeks, South Florida employers have two main messages to the nation’s top policymakers: Reduce costs and don’t mess up small businesses.

Some Congressional leaders say Obama’s timetable won’t be met, but much of the nation is watching carefully. Doctors, hospitals and pharmaceutical companies all have huge stakes in the outcome, as do the estimated 50 million uninsured.

But so does a group that has been fairly quiet until now — the nation’s employers.

“There’s change that’s needed, but there are moving parts that need to be examined,” said Publix spokeswoman Maria Brous. “We want to make sure we are doing things that are well thought-out.”
Publix and many other companies say that whatever is done to extend coverage to the uninsured, the government needs to cut healthcare costs.

“Get the costs down!” pleads Marlene Bernard, co-owner of Apricot Office Supplies in Miami Gardens. She recently paid $300 out of pocket for lab tests. “Who can keep affording this?”
Larger employers are generally able to continue to provide quality health plans even in a recession, and the bills aren’t likely to affect them, but for small employers, it’s another story. Many can’t afford to pay for insurance now, and they fear the consequences of some proposals, such as the one that would add an 8 percent payroll tax to companies with payrolls of more than $250,000 a year that don’t provide insurance.

“Oh my Lord! We couldn’t survive,” said Miriam Vilariño when she heard that proposal. Her family owns 14 restaurants, most called Las Vegas Cuban, in Broward and Miami-Dade counties. “The only thing we could do is hike our prices and our customers are already suffering to the max. We are a very budget-priced family enterprise.”

A study this month by the U.S. Public Interest Research Groups found that 76 percent of small businesses surveyed said their interests are not being recognized in the healthcare debate.
The study reported: “Small businesses who do not currently offer coverage would overwhelmingly like to, but are stymied by high costs, complications and red tape.”

Some proposals would provide tax credits to employers of fewer than 25 full-time workers (House of Representatives) or 50 (Senate) to help them buy insurance, but that wouldn’t help Las Vegas Cuban, which has more than 250 low-paid employees.

Steven Ullmann, who directs health policy programs at the University of Miami, said the details about how to reward or punish small businesses are still being hammered out in the halls of Congress.
A critical issue is what happens to those businesses on the edge of any new healthcare law, said Ullmann. If a firm’s payroll or number of employees meant it might required to provide insurance or be taxed, the easy solution would be to lay off people to get below the threshold. “The consequences of these things can get complicated,” said Ullmann.

One example: The payroll tax proposal was intended to encourage companies to provide insurance, but the co-owners of Apricot Office Supplies found themselves wondering if the tax wouldn’t be cheaper than offering employees insurance — the opposite of what policymakers had planned.
For a small-business owner like Vincent T. Brown of Grace Funeral Home in Miami, the view can be simpler.

Brown offers health insurance to his four employees, paying 70 percent of the premium, because “it’s the right thing to do.”

But he knows that there are many self-employed or small-firm workers who have no insurance, and a major illness could be catastrophic for them. “It’s critical this country find a way to protect them.”
What follows are snapshots of a survey of South Florida employers’ healthcare situation and their views about what Washington should be doing to improve the situation.

Climate-change measures start hitting New Zealand consumers

Wellington – Climate change became a reality for New Zealand consumers Thursday as petrol prices rose because of the government’s Emissions Trading Scheme (ETS), designed to reduce greenhouse gases….

Will Gordon Browns green tax kill NZ tourism ?

Housing Gets Sick on Keynesian Roller Coaster: Kevin Hassett

New home sales data have been gathered by the U.S. Census Bureau since the early 1960s. In May, they dropped to their lowest level in recorded history, increasing the risk of the dreaded double-dip recession.

Real Estate Conditions 4 – Mortgage & First Time Home Buyer Dec08 FHA Financing with low Rates