For tax and accounting practitioners, knowing the specifics about some of the most ubiquitous provisions can be a blueprint for guiding clients on tax planning for the coming years—and establishing expertise and thought leadership far into the future. The following is a roundup of some of the tax-related provisions under the ARRA that affect the greatest number of people and businesses.
The tax credit that had the most far-reaching effect in 2009 was the Making Work Pay tax credit, says
|
1040 Individual Tax Seminars
Gear Up’s ever-popular 1040 Individual Tax Seminar is our flagship course—you won’t want to miss this learning opportunity to get geared up for tax season, with the latest in legislative changes; exploration of new and revised credits and benefits; and key issues for today’s tough economy—such as IRS collection issues, cancellation of debt, and foreclosures. Available in 44 states this fall and winter.
Click here to for more information and to register. |
|
|
|
Tony Johnson, CPA and national speaker and author on tax issues for Thomson Reuters' Gear Up Tax Seminars. The Making Work Pay tax credit says that, due to changes in the federal income tax withholding tables, most workers will see larger paychecks over the next couple of years. In 2009, as well as in 2010, this provision provides a maximum $400 tax credit to individuals and up to $800 for married taxpayers filing jointly. It’s important to note that not all taxpayers will receive this credit—individuals with more than one job, pensioners and married couples with two incomes may not see the benefit.
In a related matter, unemployment benefits were affected by ARRA as well. For those taxpayers who collected unemployment benefits in 2009, the first $2,400 collected is now tax-free under ARRA.
Homeowners
Individuals looking for a new home will also find a new tax refund via the First-Time Homebuyer Credit. This provision, designed to combat the subprime mortgage crisis by placing people in homes and refueling the housing market, gives new property owners a no-strings-attached $8,000 credit if the home is titled to the individual before Dec. 1, 2009. There is one small caveat: The home must be used as a taxpayer’s principle residence.
|
|
|
2008–2009 Easy Tax Update
This online mini-course examines key individual, business, retirement, and estate tax provisions recently enacted or indexed for inflation in an overview format that is easy to reference. The emphasis is on quick access to major tax changes having special meaning to the tax practitioner and return preparer. The course is a great resource and way for professionals and staff alike to easily get the "big chunks" and bring their professional knowledge up to speed.
Click here to for more information and to register. |
|
Further, for homeowners focused on making their home more energy efficient, the Residential Energy Property Credit boosts the credit rate to 30 percent of the cost of the qualifying improvements (for example, adding insulation, energy efficient windows and HVAC systems, etc.) made in 2009 and 2010. The maximum credit is $1,500. Also, there are other tax credits for installing alternative energy equipment in the home (items such as solar water heaters and wind turbines) and a credit for plug-in electric drive vehicles. |
Mark the Win Column
Feature Story
