Tax Credits | Best Tax Tips

Seven Tips about Claiming the First-Time Homebuyer Credit

If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. Here are seven things to know about claiming the credit: 1. You must buy – or enter into a binding contract to buy – a principal residence located in the United States on or before April 30,...

February 11th, 2010 by The Tax Man

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Seven things to know about the Government Retiree Credit

Certain government retirees who receive a government pension or annuity payment in 2009 may be eligible for the Government Retiree Credit. The American Recovery and Reinvestment Act of 2009 provides this one-time credit of $250 for certain federal and state pensioners. Here are seven things to know about the Government Retiree Credit : You can take this credit if you receive a pension or annuity...

February 8th, 2010 by The Tax Man

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Ten Tax Topics for Taxpayers with Tots and Teens

Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children. Image via Wikipedia Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Child Tax...

January 26th, 2010 by The Tax Man

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Ten Things You Should Know about the Making Work Pay Tax Credit

Here are 10 things to know about this tax credit to ensure you receive the entire amount for which you are eligible. Image via Wikipedia In 2009 and 2010, the Making Work Pay provision provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns. For taxpayers who receive a paycheck and are subject to withholding, the credit will...

January 25th, 2010 by The Tax Man

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Cost Basis Complications

You can sell investments held in tax-deferred retirement accounts without worrying about income taxes. But that’s not the case with investments you own outside of tax-deferred accounts. To figure your capital gain or loss on the sale of mutual fund, stock, real estate, and other investments, you have to compare the amount you realize on the sale to your “adjusted basis” in the investment. Understanding...

October 5th, 2009 by The Tax Man

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Tax break for the purchase of new motor vehicles

The Internal Revenue Service and Treasury Department announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase. The IRS and Treasury have determined...

July 10th, 2009 by The Tax Man

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The New “New” First Time homebuyer credit.

The President signed new legislation into law last month that allows a first-time homebuyer purchasing a primary residence to be eligible for a tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when title to the property transfers to the home owner. Image...

March 11th, 2009 by The Tax Man

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OAKLAND, CA - APRIL 10: Manuel Alvarez (R) he...

Making Work Pay Credit

For 2009 and 2010, most individuals with earned income can claim a refundable Making Work Pay Credit (MWPC of up to $400 ($800 for joint returns). The Making Work Pay Credit is the lesser of 6.2% of a workers earnings or $400. Image by Getty Images via Daylife The credit effectively eliminates the first $400 of Social Security taxes. This credit is subject to phase outs as well. The amount...

March 9th, 2009 by The Tax Man

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2008 Hope and Lifetime Learning Credits

Phase-out begins at modified adjusted gross income of $96,000 joint return; $48,000 all others. Hope credit, 100% of first $1,200; 50% of next $1,200; maximum credit $1,800. Image via Wikipedia

February 11th, 2009 by The Tax Man

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LAGUNA HILLS, CA - MARCH 28: Sebastian Villal...

First-time homebuyer credit

A new first-time homebuyer credit of up to $7,500 has been designed by Congress to entice middle-class taxpayers to get off the sidelines and buy their first home. The IRS anticipates that for the period that this temporary tax credit applies — for homes purchased after April 8, 2008 and before July 1, 2009 — over $13.5 billion in credits will be claimed. Image by Getty Images via Daylife As...

December 15th, 2008 by The Tax Man

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