Tax Highlights For 2009 Part I

I am going to be throwing down some of the highlights for this tax season for you that I think are important. I am quoting the IRS directly and giving the link to specific items to avoid confusion. I will be adding to this thread in the coming weeks so stay tuned!


Recovery Rebate Credit:
http://www.irs.gov/newsroom/article/...186065,00.html


" * Individuals who did not receive an economic stimulus payment.

* Those who received less than the maximum economic stimulus payment in 2008 — $600 per taxpayer; $1,200 if married filing jointly because their qualifying or gross income was either too high or too low.

* Families who gained an additional qualifying child in 2008.

* Individuals who could be claimed as a dependent on someone else’s tax return in 2007, but who cannot be claimed as a dependent on another return in 2008.

*Individuals who did not have a valid Social Security number in 2007 but who did receive one in 2008."


First-Time Homebuyer credit:
http://www.irs.gov/newsroom/article/...202222,00.html

Ignore the word 'credit' - this is a LOAN that needs to be repaid!

"If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. If you make an eligible purchase in 2009, you can choose to claim the credit on either your original or amended 2008 return, or on your 2009 return."

"The credit normally must be repaid over a 15-year period starting the second year after the year the credit is claimed.

The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income. In general, for a married couple filing a joint return the phase-out begins at $150,000 and is completely phased out at $170,000. For other taxpayers, the phase-out range is between $75,000 and $95,000."

Addendum to the First Time Home Buyer Credit: Land Contract purchases can qualify.