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PASS Online Course: The American Recovery & Reinvestment Act of 2009
This course focuses on key tax provisions enacted under the $800 billion Act by analyzing tax issues affecting individuals and businesses contained in this first installment of President Obama’s massive economic and recovery agenda. In addition, the course discusses new energy incentives and changes made to former energy regulations. Click here for more information and to register.
MicroMash Course: The American Recovery & Reinvestment Act of 2009
Congress began its recent tenure by sending President Obama the American Recovery and Reinvestment Act of 2009 for his signature within the first 30 days of his holding office. This latest piece of tax legislation provided some tax relief to both individuals and businesses. For individuals, tax relief was given in the form of modifying existing personal tax credits, creating some new credits, extending the AMT provision, and providing some new incentives to conserve energy. For businesses, tax incentives appeared as extensions for a year or two (e.g., expanded Section 179 expensing and additional 50 percent bonus depreciation), while other provisions are one- or two-year incentives (e.g., 5-year carryback of net operating losses, change in the recognition period for the S Corporation built-in gains tax). Not unlike the past couple of years, Congress is providing only short term fixes with one- or two-year extensions, and some modest modifications.
This course focuses on those topics that appear applicable to the widest audience of taxpayers. In addition to the provisions mentioned above, the course will also discuss Making Work Pay credits, first-time homebuyer credit, HOPE and American Opportunity Tax Credit, plug-in electric vehicle credit, residential energy property credit, and energy conservation and efficiency provisions. Available May 2009! Click here for more information. |
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Keep in mind for your business clients that the former employer is required to pay the remaining 65 percent of the COBRA premium. The amount the employer pays is credited against the income tax withholding and payroll taxes they remit to the federal government.
To qualify, an individual must have been involuntarily terminated from his or her job between Sept. 1, 2008 and Dec. 31, 2009. Note, however, that recipients who have AGI greater than $125,000 ($250,000 MFJ) must pay back all or part of the subsidy when their file their income tax returns.
Personal Energy Property Credit—The Act provides a non-refundable credit in 2009 and 2010 equal to 30 percent of the cost of certain energy efficiency upgrades (insulation, doors, windows, electric heat pumps, etc.) and renewable energy systems (e.g., solar, wind, geothermal). The previous 10 percent credit was scheduled to expire in 2009.
Click here for a printable summary of the Tax Act provisions.
Click here for more information on the American Recovery and Reinvestment Act of 2009.
Written by Don Sadler.
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