Newsletter | March
New Stimulus Bill
We’re now in the middle of tax season. If you haven’t already scheduled a time to bring us your tax information, please call and schedule an appointment today!
Corporate tax returns are due on March 15th - a deadline that is quickly approaching! The personal tax deadline is not far behind on April 15th. This year the IRS and State of Ohio are issuing refunds quickly. We can e-file your return and have your refund deposited directly into your account for no extra charge. Most clients who chose this option are getting their refunds in less than 3 weeks. If you owe, we give you a voucher with your return that you can wait to mail closer to April 15th.
As you know, there are a lot of changes being implemented by the new Obama administration. Following are some of the provisions of the recently passed stimulus bill. Individuals who have recently lost their jobs stand to gain the most from the stimulus package. The federal government will start subsidizing COBRA payments. There is also a provision that allows individuals to exclude up to $2,400 of unemployment benefits received in 2009 from their income.
Tax cuts in the stimulus package include:
- Working Tax Credit
This is a $400-per-worker tax credit ($800 for couples), including those who do not earn enough to pay federal income taxes, amounting to $13 per week per average worker. The credit phases out for individuals earning more than $75,000 a year ($150,000 for couples). The stimulus plan devotes $116 billion in 2009 and 2010 for this tax credit. - New Auto Deduction
This is an earmark of $1.7 billion that allows people to deduct the sales tax paid when buying a new car. The credit would be phased out for individuals earning more than $125,000 a year or couples earning more than $250,000. - New Home Tax Credit
This is an $8,000 tax credit – First-time home buyers (anyone who hasn’t owned a home in the last three years) can claim a credit worth up to $8,000 (or 10% of the home's value, whichever is less) on their 2009 taxes for a primary residence purchased in 2009. Unlike the $7,500 credit from the previous stimulus bill, this is a true tax credit. It doesn’t have to be repaid as long as the buyers remain in the home for at least 3 years.