Bookkeeping Basics EZine

Bookkeeping Basics E-Zine, Issue #003 -- Important 2009 Tax Updates

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Bookkeeping Basics E-Zine

NEWS

1) California To Issue Tax I.O.U.'s

2) Recovery Rebate Credit

ARTICLES

1) American Recovery and Reinvestment Act of 2009

RESOURCES

1) Find a Job

2) Tax Organizer

3) Tax Deduction Lists

4) Online Tax Preparation

5) Free Affiliates Master Course

6) Quickbooks Promotion

7) SBI! Valentine's Special

In every issue....

1) Questions and Answers

2) Quote of the Month

3) Contact Me

1) California To Issue Tax I.O.U.'s

California has issued a statement as follows: "Due to the state’s persistent cash and budget problems, the State Controller announced that he will have to delay refunds for 30 days starting February 1, 2009 for Personal Income Tax and Business Entity taxpayers." Check their website often for updated information.

This is definitely something you will want to be aware of, especially if you already have plans for your anticipated tax refund! I've also heard rumors that I.O.U's may be held as late as May. I will keep you posted...

2) Recovery Rebate Credit

This credit is figured like last year's economic stimulus payment, except that your 2008 tax information is used to figure this credit. Your 2007 tax information was used to figure your economic stimulus payment. The maximum credit is $600 ($1,200 if married filing jointly) plus $300 for each qualifying child.

You may be able to take this credit only if:

You did not get an economic stimulus payment, or Your economic stimulus payment was less than $600 ($1,200 if married filing jointly for 2007), plus $300 for each qualifying child you had for 2008.

You need to know the amount of your 2008 economic stimulus payment to determine if you are eligible for the Recovery Rebate Credit. You will need the total amount of your stimulus payment to complete the Recovery Rebate Credit worksheet that is in the Form 1040, 1040A and 1040EZ instruction booklets.

Even if your payment was reduced to satisfy other debts, as would be stated on your Notice 1378, you still need to include the total. If you received more than one payment — and more than one Notice 1378 — enter the total of all payments you received.

If you don't have Notice 1378, you can use How Much Was My 2008 Stimulus Payment? to look up the amount you received.

1) American Recovery and Reinvestment Act of 2009

Special Tax Briefing (RIVERWOODS, ILL., January 28, 2009) – While the entire House of Representatives passed the tax portion of The American Recovery and Reinvestment Act of 2009 by a vote of 244-188 today , the Senate Finance Committee yesterday approved its own version of the measure for consideration by the entire Senate soon. CCH has updated its Special Tax Briefing on the bill to reflect changes made in the Committee.

To read the updated Briefing, go to CHGroup.com/Legislation/2009-Recovery-Act.pdf.

“The House and Senate versions are not identical, so a Conference Committee will have to iron out differences after Senate passage,” said Mark Luscombe, JD, LLM, CPA, CCH principal federal tax analyst.

While generally following the House version, the measure approved by the Senate Finance Committee, among other things:

Expands the “Making Work Pay” Credit to provide one-time payments of $300 to individuals on fixed incomes, mainly Social Security recipients and disabled veterans;

Adds an alternative minimum tax (AMT) “patch” for 2009;

Extends the First-time Homebuyer Credit through August 31, 2009;

Reduces refundability of American Opportunity Credit from 40 percent to 30 percent;

Lowers refundability of child credit threshold to $6,000 instead of $0;

Adds an exclusion of up to $2,400 in unemployment compensation for 2009;

Allows beneficiaries of 529 plans to use tax-free distributions for computers and computer technology;

Expands choice of carryback years for NOLs, does not reduce carryback amount by 10 percent;

Expands carryback of General Business Credit to five years for 2008 and 2009;

Extends refundable credits in lieu of bonus depreciation through 2009;

Allows businesses to defer income from certain cancellations of indebtedness in 2009 or 2010;

Increases exclusion for Qualified Small Business Stock from 50 percent to 75 percent, from after date of enactment and before January 1, 2011;

Adds an investment tax credit for broadband investments in rural, underserved areas in 2009 and 2010;

Provides additional allocations for the New Markets Tax Credit for 2008 and 2009;

Increases qualified transportation fringe benefits for transit passes and van pooling to $230 per month for remainder of 2009 and 2010;

Expands eligibility for the Plug-in Electric Vehicle Credit and creates a similar credit for low-speed vehicles;

Expands scope of industrial development bonds;

and Modifies provisions relating to the Low Income Housing Credit, Qualified School Construction Bonds and withholding on government contractors.

1) Find a Job

A lot of people are hurting right now in these tough times. Close to 2 million Americans have lost their jobs, and every one of them should be coming out of the new year especially hungry to get back to work. In anticipation of the many great, qualified applicants among you that may be hoping to find that job, here is a great resource to help you achieve that goal!

2) Tax Organizer

For my existing tax clients, you should already have received your personal tax organizer in the mail. For everyone else, please feel free to utilize this tax organizer to help you prepare for the new tax season.

Click here for the Tax Organizer

3) Tax Deduction Lists

Tax time can leave you full of questions about what kinds of expenses are deductible. The income tax forms and tax deduction lists you find here will help you determine your income tax deductions.

Click here to find out more...

4) Online Tax Preparation

If you like to prepare your own online income taxes, do it with the help of Turbo Tax. This online tax preparation software is affordable and easy to use, offering e-file and fast refund capabilities. You can learn more about the programs they have available at:

Learn more about TurboTax

5) Free Affiliates Master Course

The Affiliate Masters Course shows affiliates how to build a traffic-generating theme-based content site. From brainstorming and researching profitable keywords, to building SE-ranked Keyword- Focused Web pages using CTPM, to establishing profitable Pay-Per-Click campaigns, the course provides all the information needed for anyone to build a successful affiliate business.

Download your Free Affiliates Master Course here

6) Quickbooks Promotion

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7) SBI! Valentine's Special

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"The future belongs to those who believe in the beauty of their dreams."

- Eleanor Roosevelt

See you next month!

Stephanie

www.Bookkeeping-Basics.net