The Federal Tax Credits Blog

Posts Tagged ‘january09’

Question: Why does my $225,000 + bonus annual income disqualify me from the stimulus bill tax benefits?

I am a head of household single parent. I don’t get the $400 tax credit, or the car purchase sales tax deduction or the tax credit on my son’s college tuition. Was I a fool to work hard and pay my own way through college to get a chemistry degree, a law degree and then keep working hard all these years?

Answer: yup pretty much. You should have been like my dad who lays around getting disability. Hey, thanks for paying for my college hahaha.

UPDATED: Year-end tax tips from local experts

SANDUSKY ‘Tis the season to pay taxes. The April 15 deadline to file a federal income tax return looms, and the folks who give advice on such things suggest giving that fact some concentrated attention well before April 14.

President Obama: Health Reform Town Hall at Kroger in Virginia

Question: What tax credits can a low-income student take?

My gf only worked enough last year that she made $350 for the whole year, she has gotten extra student loans so that she could pay for rent and vehicle, etc. Besides lifetime learning, hope credit, and interest deductions, is there other ways to get credits – i.e. for low income, or can her bills be counted somehow towards these ?

Answer: If she’s at least age 25, she’s probably eligible for an Earned Income Credit (EIC) of $29 – if she’s under 25 she can’t get that.

With income that low, the credits and deductions you mention won’t save her anything. She won’t owe any tax, so unless she’s eligible for EIC, the only refund she could get would be anything that was withheld for federal income tax.

Car dealers get year-end boost with special offers

As we leave 2009, we say goodbye to some once-popular car lines, victims of the year’s tough economy. But the loss means big business right now for some Central Arkansas dealers selling the remaining inventory.

Student Scholarship Program

Question: Can your paycheck be garnished for a nine year old credit card bill that is identity theft?

I got a notice this was going to be done. I thought this was illegal, that your pay could only be garnished for child support, taxes, alimony and student loans.
I’m a victim of identity theft and a police report and a report with the Federal Trade Commission has been filed with all 3 credit reporting agencies. Also, isn’t the statute of limitations 7 years?
I need help desperately, should I contact a lawyer? I’m in Tampa FL.

Answer: In FL, the statute of limitations on credit card debt is 4 years. However, that is 4 continuous years of living in florida. If after 3 years, you moved out for a year, and are now back, the 4 years started over.

The SOL is a defense against a court judgment. The court judgment is a necessary step for the creditor to get a wage garnishment against you. And, yes, cc debt is eligible for garnishment – it isn’t just taxes and student loans.

If your debt is 9 years old, and you have not moved around, then the only way the cc company can get a judgment against you is for you to not show up in court. If this is a notice of court hearing, make sure you show up, dispute the debt, and show evidence of identity theft.

If you missed the court hearing, you probably should have a lawyer file a motion to have the judgment vacated (=set aside or voided).

Good luck.

End of tax credit adds to biofuel-makers’ woes

An alternative fuel for diesel engines is off to a shaky start this year, though it emits fewer pollutants and cuts down on petroleum use because it’s made from environmentally friendly waste and vegetable oil. A federal tax credit that provided makers of… Petroleum – Vegetable fats and oils – Alternative fuel – Diesel engine – Business

Solar Companies in San Diego California Solar Panels Tax Credit

Question: Are you taking advantage of the 30% off windows,doors,water heaters,A/C?

I am really liking what I see in this stimulus package. I was planning on upgrading my windows and entry door this summer anyway, also I was planning on installing a on-demand water heater. Now I will help the economy by hiring .. plumbers,electricians,carpenters. I wish people could be more positive about this stimulus, it is really a great thing. I also have two boy’s in college that I am 100% paying for their tuition. With the Education Tax Credit Obama has passed, I will have a tax savings of $2,500 next year applied to that debt. Thanks Democrats.. keep up the great work!!!
comment on reply below.. I doubt a high schooler would know what a On -demand water heater is..

Answer: OMG! Obama’s plan provides money to send kids to those evil liberal indoctrination centers known as colleges? This will not stand! Why…those boys will turn out to be “educated left-wing elitists”!

Somebody get Hannity on the phone now!

(BTW, good luck with the remodling! I like my on-demand heater.)

THE YEAR IN REVIEW: Local news highlights from 2009

A look back at the people and events that made news during the past 12 months in the Mid-Hudson Valley:

Senator Schumer on Education in the Stimulus

Question: Federal Education Credits – Hope and Lifetime?

I was just doing my taxes and when I got to the education credits form (8863) it came out that I am not entitled to claim any credits. It’s because my income is so low I don’t pay any federal tax (my income was about $4500 last year). So I just wanna make sure this is accurate: if you don’t pay tax you aren’t entitled to the credit? because on my state return (NY) I also never pay tax but AM entitled to an education expense credit of about 200. So on federal they dont let you go into negative amounts on your tax payment i guess?

Answer: You are correct. The people who get that tax credit are getting a refund so to speak on money they have already paid in. If you haven’t paid any in, you don’t get any back.

For the record, those education credits are not very user friendly!
You can only take them the first and second year, you know, so the first time we filed for one, our student had just been in college the fall semester, so we only got credit for a half of a year. It’s done by the tax year, not the school year, so you can never get 2 years worth unless your first 2 years of college aren’t spread out over 3 tax years, which is almost never the case.

The Year America Lurched Left

In our first editorial after Barack Obama’s historic victory in November 2008, we acknowledged that “we were witnessing an event in which all Americans can take justifiable pride.”

The IRS, the Federal Reserve Bank & the Income Tax