Tax | Best Tax Tips

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 var a2a_config = a2a_config || {}; a2a_config.linkname="2008 Hope and Lifetime Learning Credits"; a2a_config.linkurl="http://besttaxtips.com/2009/02/2008-hope-and-lifetime-learning-credits/";

February 11th, 2009 by The Tax Man

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2008 Itemized Deduction Phaseout

All filing status but married separate–$159,950; Married, separate–$79,975 a2a_config.linkname="2008 Itemized Deduction Phaseout"; a2a_config.linkurl="http://besttaxtips.com/2009/02/2008-itemized-deduction-phaseout/"; a2a.init("page");

February 9th, 2009 by The Tax Man

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Independent Contractor vs. Employee

Understanding the difference between an employee and an independent contractor is very important. If you are an employer, you are required to withhold and contribute a matching amount of FICA and Medicare taxes from your employee’s income. However, if your workers are independent contractors, you are only required to report payments of $600 or more on a Form 1099-MISC (Miscellaneous Income)....

January 15th, 2009 by The Tax Man

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2008 Economic Stimulus Act – Code Sec. 179 Expense and Bonus Depreciation

Congress has passed the Economic Stimulus Act of 2008 (2008 Economic Stimulus Act), which increases the limitation on expensing depreciable assets and also provides for 50% bonus depreciation on new equipment for the year it is placed in service. More specifically, the 2008 Economic Stimulus Act provides an increase in the expense deduction limitation under Code Sec. 179 from $128,000 to $250,000 and...

December 30th, 2008 by The Tax Man

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Property deduction for non-itemizers.

Significantly less complicated is a new standard property deduction for taxpayers who do not itemize deductions. Image by farlane via Flickr Before the new law, only itemizers could deduct state and local property taxes. The housing act gives non-itemizers a limited deduction for state and local property taxes by increasing the amount of their standard deduction by the lesser of the amount...

December 21st, 2008 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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2008 Personal Exemptions

2008 Personal Exemptions Amount–$3,500 Phase-out of Personal Exemption– Filing Status AGI Begin Phase-out AGI Maximum Phase-out Married, filing joint/surviving spouse $239,950 $362,450 Heads of household ...

December 7th, 2008 by The Tax Man

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2008 Standard Deduction

The basic standard deduction amounts for 2008 are: Head of household deduction is $8,000 Married taxpayers filing jointly and qualifying widow(er)s deduction is $10,900 Married taxpayers filing a separate deduction is $5,450 Single deduction is $5,450 The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer may not exceed the greater of $900 or the sum of...

November 30th, 2008 by The Tax Man

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