New Tax Changes that Could Affect You
Acts of 2007 & 2008
Here are some of the tax law changes that might affect you in upcoming years. More details can be found on www.irs.gov. Please do not hesitate to ask your tax preparer if you have questions about any of the following items:
Economic Stimulus Act of 2008
- ‘Rebate’ checks sent out in 2008 based on information from 2007 tax return.
- Payments starting at $300 for qualified taxpayers may qualify for additional credit when filing 2008 return
- Amount of rebate received is not taxable but the amount is needed to file your 2008 return
- Ask your preparer for more details
Mortgage Forgiveness Debt Relief Act of 2007
- Taxpayers can exclude up to $2 million of cancellation-of-debt income related to foreclosure or refinancing of their principal residence
- Does not apply to second homes or vacation homes
- Applies to acquisition debt or refinanced debt of principal residence
- Does not apply to taxpayers that refinanced and received large lumps of money
- Ask your preparer for more details
Housing Assistance Tax Act of 2008
- 1st time homeowners purchasing their home between April 8, 2008 and July 1, 2009 could to $7500 credit
- Credit is re-paid for up to 15 years starting in 2010 (or 2011 for homes purchased in 2009)
- Ask your preparer for more details
Housing Assistance Tax Act of 2008
- Additional standard deduction up to $500 (all but MFJ) or $1000 (MFJ) for real estate taxes paid in 2008
- Available for taxpayers that do not itemize their deductions
Emergency Economic Stabilization Act of 2008
- Standard deduction for property taxes extended through 2009
- Sales and local tax deduction extended for 2008 & 2009
- Educator expenses extended for 2008 & 2009
- Tuition and fees deduction extended for 2008 & 2009
- Tax-free IRA distribution for charitable purposes for 2008 & 2009
- $500 Energy Credit re-instated for 2009
Call or stop by Associated Tax with any questions—in Omaha at 48th and Dodge or 30th and Ames.
