Reduce your tax bill today!
July 2, 2009
More summertime tax news
Are you planning some home improvement work this summer? Make energy efficiency changes and you may be able to cut your 2009 tax bill at the same time.
The economic stimulus act signed in Februrary expanded energy tax credits in order to encourage homeowners to make improvements that will make their homes more energy efficient and save money over the long run.
Qualifying improvements--such as adding insulation, energy-efficient exterior windows, and energy-efficient heating and air conditioning systems-- could cut your tax liability. The new law increases the nonbusiness energy property credit to 30 percent (up from ten percent last year), with a $1500 cap.
In addition, the stimulus act also modified the residential energy efficient property credit. In 2008, an individual taxpayer was allowed to claim the credit equal to the sume of 30 percent of the cost of qualified solar water heaters and geothermal heat pumps installed in the home, with a $2000 cap. In 2009, the $2000 limit is removed.
For details and guidance on how to capitalize on the enhanced energy credits for your home improvement projects, send me an email or visit me on Facebook.
June 12, 2009
Summertime is approaching!
As warm summer days arrive, you may be tempted to neglect things like taxes. But that could lead to a higher tax bill come April 2010. Here are a few summertime tax-saving recommendations:
If your spring cleaning left you with outgrown clothing and appliances or other household items, donate them to charity (eg., Salvation Army, Goodwill, etc). Items in good condition qualify for a tax deduction. If you are an itemizer, this is something I highly recommend. Make sure the charity provides you with a receipt.
If you and your spouse work, consider sending the children to a summer day camp. The cost may qualify for the dependent care tax credit.
If you own an incorporated business, consider hiring your children to work for you this summer. You can deduct their wages, and there is no social security tax on their wages if they are under age 18.
Summer is a good time for self employed taxpayers to entertain their clients. Keep records of the cost, the date, who was entertained and the business purpose. Your tax deduction is limited to fifty percent of your cost.
Combine business with your summer travel, and you may be able to take a tax deduction for the business portion of your costs.
August 8, 2009
Summer wedding? Don't forget taxes!
Summertime is often wedding time. If you or someone in your family got married this summer (or planning a wedding soon), remember to take care of a few taxing details:
- If your address changes, send a change of address form (Form 8822) to the IRS. Form 8822 can be downloaded from www.irs.gov, and must be mailed in to the IRS address specified on the back of the form.
- Check your withholding for 2009 to see whether marriage makes changes necessary. The marriage penalty has not been completely eliminated, and you may find yourself facing a big tax bill and penalties if you don't take care of this matter.
- If your name changes, notify the Social Security Administration by completing a new Application for a Social Security Card, which can be downloaded from http://www.ssa.gov/online/ss-5.html.
- Update your will and other estate planning documents, and review your beneficiary designations on IRAs, 401(k)s, and life insurance policies.
Many of these details need to be taken care of following other events too, such as divorce or a new baby. For more information or assistance with any tax concerns, send me an email or visit me on Facebook.