Accountants beat banks as most trusted source of advice. http://www.accountancyage.com/aa/news/2230418/accountants-beat-banks-as-most-trusted-source-of-advice?WT.tsrc=Email&WT.mc_id=687&utm_source=Newsletters&utm_medium=Email&utm_campaign=AA_DailyBulletin

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Article: Top 10 Office Gadgets to Reduce Your Carbon Footprint. http://mashable.com/2012/04/21/sustainable-office-gadgets/

 

To File or Not To File

To File or Not To File

You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive.

For example, a married couple both under age 65 generally is not required to file until their joint income reaches $17,900. However, self-employed individuals generally must file a tax return if their net income from self employment was at least $400.

Check the “Individuals” section of the IRS Web site at IRS.gov or consult the instructions for form 1040, 1040A, or 1040EZ for specific details that may affect your need to file a tax return with IRS this year.

Even if you don’t have to file, here are six reasons why you may want to file:

1. Federal Income Tax Withheld. If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, if you made estimated tax payments, or had a prior year overpayment applied to this year's tax.

2. Recovery Rebate Credit. If you did not qualify or did not receive the maximum amount for the 2008 Economic Stimulus Payment, you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return.

3. Earned Income Tax Credit. You may qualify for the Earned Income Tax Credit, or EITC, if you worked, but did not earn a lot of money. EITC is a refundable tax credit meaning you could qualify for a tax refund.

4. Additional Child Tax Credit. This credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.

5. First time Homebuyer Credit. If you bought a main home after April 8, 2008, and before July 1, 2009 and did not own a main home during the prior 3 years, you may be able to take this refundable credit.

6. Health Coverage Tax Credit. Certain individuals, who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit when you file your 2008 tax return.

For more information about filing requirements and your eligibility to receive tax credits, visit the IRS Web site at IRS.gov.

Tax Changes for Individuals

Tax Changes for Individuals

Child-Related Tax Changes Information on adoption benefits, child and dependent care credit, child's investment income, and additional child tax credit. Credit for Prior Year Minimum Tax There are several changes to the credit for prior year minimum tax. Earned Income Credit The earned income credit amounts have increased for 2008. Education-Related Tax Changes Information on education savings bond exclusion, hope and lifetime learning credits, tuition and fees deduction, and student loan interest deduction. Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders For tax years beginning after 2007 and before 2011, gross income ... Health/Medical-Related Tax Changes Information on Archer Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care premiums. Home/Residence-Related Tax Changes Information on mortgage insurance premiums, residential energy credits, and sale of main home by employees of intelligence communities. Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion New limits on exclusion payments made under a long-term care insurance contract. Itemized Deductions The itemized deduction phaseout income limits have increased for 2008. Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced There are changes to the maximum tax rate on qualified dividends and net capital gain. Penalty for Failure to File Income Tax Return Increased The failure to file penalty has increased. Personal Exemptions The deduction amount and phaseout income levels have increased for 2007. Also, the definition of qualifying relative is clarified. Recovery Rebate Credit See if you are eligible for the recovery rebate credit. Social Security and Medicare Taxes The maximum amount of wages subject to the social security tax and Medicare tax has increased for 2008. Standard Mileage Rate The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008. Wage Threshold for Household Employees The social security and Medicare wage threshold for household employees is...

Economic Stimulus Package Clears Congress

Economic Stimulus Package Clears Congress

Congress has approved temporary economic stimulus legislation that was signed into law by President George W. Bush on February 13, 2008. The package offers increased expensing limits for small businesses and one-time tax rebates to millions of American citizens.

Intense negotiations between Senate leaders and the White House on February 7 lead to agreement on a slightly altered House stimulus package that the Senate quickly approved by a vote of 81-16 and sent to the House for that chamber's approval, 380-34. The revised version also extends rebate checks to some 22 million low-income senior citizens and 250,000 disabled veterans, while denying refunds to illegal immigrants.

Under the new legislation, individuals would receive rebate checks up to $600; married couples up to $1200, and an additional $300 for each child under 17 years old. The minimum rebate amount is $300 ($600 for married filing jointly). Taxpayers will receive this amount if they have at least $1 of tax liability or $3,000 in qualifying income, defined as the sum of net self-employment income, veterans' disability payments (including payments to survivors of disabled veterans), and Social Security benefits. Income eligibility for the rebates is capped at $75,000 for individuals and $150,000 for married couples.

In addition, the measure provides employers the opportunity to fully expense equipment up to $250,000 in the year it is purchased with an overall annual investment limit of $800,000 and provides for a one-time 50 percent bonus depreciation on new equipment in the year it is placed in service. In addition, the measure increases the loan limits for Fannie Mae and Freddie Mac, as well as FHA-approved mortgages.

Treasury Secretary Henry M. Paulson, Jr., said in a statement on passage of the stimulus bill, "the IRS will manage the current tax filing season and simultaneously prepare to issue [the rebate checks] starting in early May. Payments will be largely completed this summer."

A White House spokesman indicated that the IRS will immediately begin preparing to issue checks after President Bush signs the bill, although the exact amounts owed to eligible recipients cannot be calculated until 2007 tax returns are filed.

Stay tuned to our site for the latest information and changes regarding the 2007 tax filing season!