Kip Tip
Quick Money Management and investing Advice
2009
Hi, I’m Mary Beth Franklin with your daily tax tip. You know on this rocky economy, a tax refund can provide some welcome relief. You’ll see a lot of changes on the 1040 form when you file your taxes this year. Make sure you claim every deduction and credit that you deserve.
For example, if you bought your first home, this year or last, you may be eligible for new first time home buyer’s tax credit. It's worth up to $7,500 if you bought a house last year after April 8th or up to $8,000 if you buy one this year, anytime for the end of November. Income eligibility limits apply.
Now if you own a home but you itemize your deductions, you can claim an extra standard deduction to offset the real estate tax that you pain in 2008. It’s worth up to $500 if you’re single and up to a thousand if you’re married and filed a joint return.
There’s also a beefed up standard deduction for loses sustained and federal disaster areas. So depending on where you live, you might qualify to simply add your causality loses to your regular standard deduction so you get to benefit even if you don’t itemize and if you missed out on last year’s tax repaid because your income was too high, you make it a second chance when you follow your 2008 tax return. If your income declined last year, maybe because you lost a job or your hours we’re reduced, you may qualify for tax credit about to $600 if you're single and a $1200.00 if your married.
For more information, visit www.kiplinger.com/taxcenter
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