Disclaimer of Liability
The information in this e-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice,
accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used
as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or
taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular
situation.
The author of the tax articles in this e-newsletter did not intend nor write the advice to be used to avoid any penalty imposed by a
taxing authority, nor may any user/recipient of this document use this document's written tax advice for that purpose. This document's
tax advice was written specifically to support the promotion or marketing of the transaction/matter addressed by the written tax advice.
Therefore, any user/recipient of this document should seek an independent tax professional's advice regarding the user/recipient's
particular circumstances.
The information is provided "as is" with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and
without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for
a particular purpose.
The information in this e-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice,
accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used
as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or
taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular
situation.
The author of the tax articles in this e-newsletter did not intend nor write the advice to be used to avoid any penalty imposed by a
taxing authority, nor may any user/recipient of this document use this document's written tax advice for that purpose. This document's
tax advice was written specifically to support the promotion or marketing of the transaction/matter addressed by the written tax advice.
Therefore, any user/recipient of this document should seek an independent tax professional's advice regarding the user/recipient's
particular circumstances.
The information is provided "as is" with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and
without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for
a particular purpose.
| Serving the Central Pennsylvania area since 1981 |
| Robert A. Romako, CPA |
| What to Remember to Tell Your Tax Preparer for Your 2009 Income Taxes |
There are a number of new deductions, credits and eligibility changes that may provide you with
extra tax savings on your 2009 tax return. But, you have to remember to tell your tax preparer
about them (or keep them in mind if you prepare your own returns). Here is a list of some of the
special opportunities that may apply to you:
• Real estate taxes are deductible, even if you do not itemize your deductions.
• You can deduct the greater of state and local income taxes, or sales taxes. For
sales taxes, you can use your actual receipts, or the IRS provides a sales tax chart based on
income. However, you can add the sales tax paid on large ticket items, such as cars, boats,
furniture and construction materials, to the chart amounts, so be sure to tell your accountant
about these.
• If you purchased a new vehicle between February 17 and December 31, 2009, you can
deduct the sales tax paid, even if you do not itemize or you use the state and local income tax
deduction in lieu of the sales tax deduction. Used cars do not qualify, however.
• You can claim mileage for any medical purposes at a rate of 24¢ per mile, and at 14¢
per mile for charitable driving, if you itemize your deductions.
• Business mileage is deductible at 55¢ per mile for 2009.
• Energy improvements, such as thermal windows and doors, insulated roofs, additional
insulation, energy-efficient air conditioners, hot water heaters and heat pumps, and biomass
stoves, are eligible for a credit of 30% of cost, up to a maximum credit of $1,500. Note that the
credit is allowed for upgrades made to only your primary residence.
• A 30% of cost credit, with no limit, is allowed for solar, wind and geothermal energy
equipment installed in your primary residence.
• There is a First-Time Homebuyer credit of up to $8,000 for homes purchased from
January 1, 2009 through April 30, 2010.
• There is an Existing Homebuyer credit of up to $6,500 for homes purchased from
November 7, 2009 through April 30, 2010.
• Student loan interest is deductible up to $2,500 (subject to income limitations).
• Tuition may be deductible as an “above the line” deduction or may be eligible for a tax
credit (subject to income limitations). The maximum credit for the first 2 years of college tuition
has increased to $2,500 for 2009.
• Teachers can deduct up to $250 in unreimbursed classroom education expenses.
Finally, for the tax do-it-yourselfers, remember to claim the Making Work Pay and/or
Government Retirees Credit, which has its own new line on your Form 1040.
If you think these are a lot of changes, you’re right – there were 5 major tax bills passed in 2009,
plus a number of smaller changes in other legislation. And yes, there will be more changes in
2010!
extra tax savings on your 2009 tax return. But, you have to remember to tell your tax preparer
about them (or keep them in mind if you prepare your own returns). Here is a list of some of the
special opportunities that may apply to you:
• Real estate taxes are deductible, even if you do not itemize your deductions.
• You can deduct the greater of state and local income taxes, or sales taxes. For
sales taxes, you can use your actual receipts, or the IRS provides a sales tax chart based on
income. However, you can add the sales tax paid on large ticket items, such as cars, boats,
furniture and construction materials, to the chart amounts, so be sure to tell your accountant
about these.
• If you purchased a new vehicle between February 17 and December 31, 2009, you can
deduct the sales tax paid, even if you do not itemize or you use the state and local income tax
deduction in lieu of the sales tax deduction. Used cars do not qualify, however.
• You can claim mileage for any medical purposes at a rate of 24¢ per mile, and at 14¢
per mile for charitable driving, if you itemize your deductions.
• Business mileage is deductible at 55¢ per mile for 2009.
• Energy improvements, such as thermal windows and doors, insulated roofs, additional
insulation, energy-efficient air conditioners, hot water heaters and heat pumps, and biomass
stoves, are eligible for a credit of 30% of cost, up to a maximum credit of $1,500. Note that the
credit is allowed for upgrades made to only your primary residence.
• A 30% of cost credit, with no limit, is allowed for solar, wind and geothermal energy
equipment installed in your primary residence.
• There is a First-Time Homebuyer credit of up to $8,000 for homes purchased from
January 1, 2009 through April 30, 2010.
• There is an Existing Homebuyer credit of up to $6,500 for homes purchased from
November 7, 2009 through April 30, 2010.
• Student loan interest is deductible up to $2,500 (subject to income limitations).
• Tuition may be deductible as an “above the line” deduction or may be eligible for a tax
credit (subject to income limitations). The maximum credit for the first 2 years of college tuition
has increased to $2,500 for 2009.
• Teachers can deduct up to $250 in unreimbursed classroom education expenses.
Finally, for the tax do-it-yourselfers, remember to claim the Making Work Pay and/or
Government Retirees Credit, which has its own new line on your Form 1040.
If you think these are a lot of changes, you’re right – there were 5 major tax bills passed in 2009,
plus a number of smaller changes in other legislation. And yes, there will be more changes in
2010!
| January 2010 NEWSLETTER ARTICLE |
| Robert A. Romako, CPA 220 Haldeman Avenue New Cumberland, PA 717.774.3047 |