llwe tax presentation for ujamaa 2009

How the stimulus act will affect your 2009 taxes : 

How the stimulus act will affect your 2009 taxes Making Work Pay Credit Changes in EITC First Time home buyer Credit New automobile sales tax deduction Child tax credit

Making work pay credit : 

Making work pay credit Maximum $400 credit for single employed taxpayers Maximum $800 credit for married filing joint employed taxpayers Self-employed and W-2 taxpayers are eligible

Making work pay credit : 

Making work pay credit To accelerate the MWP credit's impact, the IRS revised the 2009 income tax withholding schedules in March 2009 Most workers saw an increase in take home pay beginning in April

Making work pay credit : 

Making work pay credit Most workers will see a smaller refund in 2010 There is a possibility that workers who have two or more jobs, dependents who work part time, and married couples will owe because their situations were not accounted for in the MWP credit

Making work pay credit : 

Making work pay credit How will the MWP be reflected on your 2009 return? Schedule M is the new form used to calculate your MWP credit The final amount on Schedule M goes in the payments section on form 1040/1040A

Making work pay credit : 

Making work pay credit A working taxpayer who received a $250 one time economic recovery payment (for Soc Sec, SSI disability, veterans comp recipients) this year will get $250 less MWP credit The MWP credit will also be effective in 2010

Earned income tax credit : 

Earned income tax credit EITC enhanced for 2009 and 2010 On Schedule EIC form, 3 children can be listed (change from 2 children) The EITC credit percentage for families with three or more qualifying children increased from 40% to 45%--maximum credit is $5,656 for families w/ 3+ qualifying children; maximum credit is $5,057 for families w/2 QC; maximum credit is $3,043 for families w/ 1 QC Maximum EITC for taxpayers without children is $457

Earned income tax credit : 

Earned income tax credit Changes to uniform definition of a child -the taxpayer must be older than the child unless the child is disabled -the child must not file a joint return except to claim a refund -if a parent qualifies to use EITC for a child, any other person other than the parent claiming the child must have his /her adjusted gross income greater than the parent

First Time Homebuyers Credit : 

First Time Homebuyers Credit Introduced in 2008, enhanced in 2009 in an effort to stimulate the housing market Was recently extended by Congress and signed into law by President Obama, new changes effective as of Nov. 6 Now first time homeowners have until April 30, 2010 to claim a maximum $8000 credit Current home owners who want to purchase a new home qualify for a maximum $6500 credit

First Time Homebuyers Credit : 

First Time Homebuyers Credit FTHC is refundable-- refund can be substantial—if taxpayer has no tax liability, his/her refund will increase by $6500 or $8000, with no repayment How will FTHC be reflected on your 2009 return -New form 5405 attached to 1040 return, amount part of payments section of form 1040/1040A

Sales tax deduction for new car purchase : 

Sales tax deduction for new car purchase Effective only for new vehicles purchased between Feb. 17, 2009 and Dec. 31, 2009 Purpose was an attempt to stimulate the auto industry

Sales tax deduction for new auto purchases : 

Sales tax deduction for new auto purchases Purchase of a new car, light truck, mobile home/RV, or motorcycle qualifies The deduction is limited to the sales and excise taxes on a vehicle up to the purchase price of $49,500 The deduction is available whether taxpayers itemize or not

New sales tax deduction on new car purchases : 

New sales tax deduction on new car purchases How sales tax deduction will be applied to your 2009 return -Schedule L- new form used to calculate amount of deduction -Final amount of Schedule L is used to add to the standard deduction line (for non itemizing taxpayers) -Itemizers can include sales tax from car in taxes paid section of Schedule A (Schedule L not used if taxpayer is itemizing)

Child tax credit and Additional Child Tax Credit : 

Child tax credit and Additional Child Tax Credit Effective for 2009 and 2010, the new earned income threshold for both the CTC and ACTC is $3000, down from $12,500 in 2008 Maximum CTC and ACTC is $1000 per qualifying child under age 17 The CTC is nonrefundable-- allows the taxpayer to lower his/her tax liability to zero, but not below zero If a taxpayer is not able to use the entire CTC from the maximum $1000, the taxpayer may qualify for the Additional CTC, which is refundable

Sponsor of this presentation : 

Sponsor of this presentation This presentation is given by Lorretta A. Walker, CEO of LLWE Business Services Plus My website is http://llwe.net Also friend me on Facebook—my profile is Lorretta.A.Walker Come to me for your income tax needs—why go to the Big Boys? Thank you very much for your time!