Ga State Taxes E-file Free

October 24th, 2009

ga state taxes e-file free

The Top Ten Changes to 2008 Tax Law

Top Ten 2008 Income Tax Act Amendments

By David Roberts

Every year for whatever reason, whether political or an exchange of favors for lobbyists, our Congress adds additional changes to our already already complicated tax law. Sometimes these changes are beneficial, sometimes they are not, but this article will briefly on the changes this year 2008 tax returns have been made.

First, the tax rate on qualified dividends and net investment income has been reduced! For the taxpayers in the lowest two tax brackets, which formally were paid 5% in capital gains tax is payable in the coming years 0%. For those interested in the effects to the Alternative Minimum Tax, so, will the rate of 0% for both regular tax and AMT application. This is good news and should help encourage this to invest in lower tax brackets. Of course, the question arises, where lower income tax bracket taxpayers would invest the extra money to get?

Perhaps if those who actually invest money, received a discount for keeping it properly could to invest more money in the hope for higher returns! These increased investments would then benefit those who invest do not have the ability, because these investments jobs would create activity. For more information, Google "Reaganomics" or the "trickle down" economics. "

Secondly, the IRA contribution limit for traditional and have Roth IRA has increased to $ 5000. ($ 6,000 for taxpayers with more than 50 games are 'catch-up "). This will encourage more people to save more for retirement. The issue of which type of IRA is best for you a little long for this article. The short version is that A traditional IRA lets you invest money to reduce pre-tax and actual tax liability. The Roth IRA is after tax, but through the retirement of the individual funds can withdraw money tax free. So it is important to you want to be taxed on $ 5,000 now and pull him out, if it cost $ 50 000 taxes, would (Roth) or you prefer To avoid the taxes on the $ 5,000 now and pay them when the amount of $ 50,000, if you pull him? (Traditional)

Three, for those that the decision to rollover IRAs Roth IRAs to their traditional, you can now want to rollover funds from:

• a. A qualified pension, profit sharing or stock-bonus plan (including a 401 (k) plan.)

• b. An annuity plan.

• c. Tax pension plan (section 403 (b) plan) or

• d. A deferred compensation plan of a state or local (§ 457 plan)

Although there was an additional tax of 10% at the beginning of distributions, there would be advantage these funds growing tax free will from that date.

Four, the exit from the reduction of personal exemptions and itemized deductions. For those of us lucky enough to have this problem, this means that the government believes that we make too much money to earn our standard deductions Itemized deductions, and which were discontinued in the past because we are the lucky ones, and we need with more and more taxes for our services be punished. This year, however, this amount is only a third of the amount which would otherwise apply. This means that although we are not the standard $ 3500 for a personal Relief that at least we get a personal exemption of $ 1,167. Is not it our government is generous?

Five are the tax Kiddie rules now extended to every child who is older than 18 at the end of the year and whose earned income to include not support more than half of the child. And any student who is after 24 years at the end of the year and whose earned income to support no more than half of the child. Both groups of children are still at the parents be taxed, and that does not apply to those full-time students at a college or institution shall be strictly online. This is a good reason to ensure that your new students concentrate on studies and not on making money! may of course is not an option for some.

Six, a first-time Homebuyer Credit of $ 7,500! First, we define a first time home buyers for our IRS. A first time homebuyer is someone who has no home, in three consecutive years in the possession before the date of purchase. Second: How does the credit work? Honestly this credit is more like a loan than it is a tax credit. The Home buyers receive the benefits of a credit card $ 7,500 in the year of the purchase of the house, which will be repaid early in the second year following the purchase of the house, in steps 1 / 15 for 15 years. If the house is sold at any time during these 15 years, the balance must be repaid all at once. This information is on the new IRS form are reported 5405th

Seven, of the exclusion on the sale of Main Home. Now the widows and widowers to the full $ 500,000 from the profit exclude from the sale of their house if the sale no later than 2 years after the date of their spouses' death, and if the property meets requirements were prior to the date of death. This is, of course, unless there was a sale of a principal residence by a spouse less than two years experience of death. Situation: Rita and Evan Joseph Smith meet and decide to marry. They sold their home with a profit of over $ 500,000 within two years, and it passes, Evan can not sell his house with the exclusion because the exclusion is already taken by his wife. If they had waited to die until the third year, he would be free, the full to require the exclusion of $ 500,000.

Eight, which is actually a good one! Due to the constantly rising gas prices, Congress has decided 58 cents per mile for business miles during the second half of 2008 can be driven. And, the medical mileage to 27.5 cents per mile is for the second half of 2008 increased. Accurate records is a must for this one, because the IRS can not believe that you drove 100% of your miles in early June!

Nine, our local hero, the first responders to obtain discounts or reductions of property and taxes! You will also receive qualified payments of up to $ 30 per month for the provision of first aid services.

Ten of the Credit Recovery rebate. Taxpayers will receive a refundable credit, the same in the Way as the 2007 economic stimulus package payment, except that the amounts are figured based on fiscal year 2008 instead of 2007. If it is a difference, and the less credit received as payment, the difference will not be refunded! So this is completely different from the first stimulus package passed in 2001 in that they are Do not ask us back for this one!

The next article will examine the other changes in tax for 2008.

Daniel Ahart Tax Service, Atlanta, GA