$8,000 First Time Home Buyer Tax Credit
The good news for home-buyers, is that unlike last year's $7,500 First Time Home Buyer Tax Credit, the 2009 home buyer tax credit doesn't need to be paid back!
Here is additional information on the credit:
- It applies to homes purchased January 1, 2009 through November 30, 2009.
- You must keep the home for three years.
- The credit is for $8,000 or 10% of the home's value, whichever is less.
- The credit is refundable.
- You can not have owned a home for the past 3 years.
- It phases out for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples.
For more information and FAQ's click the following link
http://www.irs.gov/newsroom/article/0,,id=206293,00.html
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American Recovery and Reinvestment Act of 2009
(1) The new Making Work Pay Credit: The new withholding tables that employers should have implemented no later than April 1 have been incorporated into the calculator.
You should use this calculator to ensure that the reduced withholding will not result in having too little income tax withheld (possibly causing you to owe taxes next year) if:
- You are an employee with two concurrent jobs,
- You and your spouse both work, or
- You can be claimed as a dependent on someone else's tax return (since you are not eligible for this credit)
(2) Pension Income: Non-government pension income is not eligible for the Making Work Pay Credit, so we are in the process of updating the calculator to account for this. The update should be operational by mid-June. If you expect to receive a significant amount of pension income in 2009, you should use this calculator soon thereafter so that you can adjust your withholding appropriately for the second half of the year.
(3) Unemployment Compensation: The first $2,400 of unemployment compensation an individual receives in 2009 in now tax-free. We are also updating the Withholding Calculator (by mid-June) to account for this. In the meantime:
- If you expect to receive $2,400 or less, of unemployment compensation, simply do not enter that income into the calculator.
If you expect to receive more than $2,400, you will need to subtract $2,400 from your total unemployment compensation and enter that difference on the "other non-wage income" line.
Purpose of This Computer Program: The purpose of this application is to help employees to ensure that they do not have too much or too little income tax withheld for their pay. It is not a replacement for Form W-4, but most people will find it more accurate and easier to use than the worksheets that a company Form W-4. You may use the results of this program to help you complete a new Form-W-4, which you will submit to your employer.
Tips For Using This Program
- Have your most recent pay stubs handy.
- Have your most recent income tax return handy.
- Fill in all information that applies to your situation.
- Estimate values if necessary, remembering that the results can only be as accurate as the input you provide.
- Consult the information links embedded in the program whenever you have a question.
- Print out the final screen that summarizes your input and the results, then use it to complete a new Form W-4 (if necessary), and keep it for your records.
Who Can Benefit From This Application?
- Employees who would like to change their withholding to reduce their tax refund or their balance due;
- Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
- Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.
Note: The information you provide is anonymous and will be used only for purposes of this calculation. It will not be shared, stored or used in any other way, nor can it be used to identify the individual who enters it. It will be discarded when you exit this program.
Continue to the Withholding Calculator
Business Incentives
Bonus Depreciation for Equipment and Other Fixed Assets
- 179 depreciation - immediate write-off - $250,000 / $800,000
- Other fixed assets - 50% write-off in first year
Net Operating Loss ("NOL") Carryback
- Take 2008 business losses back 5 years
- Small business - gross receipts under $15 Million
Cancellation of Indebtedness ("COD")
- Spread income effect over 5 years beginning in 2014
S Corporation Built-in Gains Tax
- Shortens time frame from 10 to 7 years
COBRA Benefits to Laid-off Workers
- Period from September 1, 2008 thru December 31, 2009
- Employee pays 35% / Employer obtains credit for 65%
Miles V. Schmidt, CPA, PLC
750 Front Ave., NW, Suite 315, Grand Rapids, MI 49504-4400
Phone: 616.742.0400 - Fax: 616.458.9848 |
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