U.S. TAXPROs

IRA Conversion to Roth

mike — Mon, 15 Feb 2010 22:53:30 +0000

2010 may be a great time to consider converting your regular IRA to a Roth IRA. The income limitations have been abolished and you may also elect to pay the tax in 2010 or report the taxable amount over two years in 2011 & 2012. However, be sure to remember that as of today, the current tax rates expire at the the end of 2010 which means a significant tax increase in subsequent years. There’s also a good deal of speculation that there may be additional increases due to the current deficit- producing programs.

RMD Reminder

mike — Fri, 12 Feb 2010 21:54:32 +0000

If you are already or will be over 70 ½ years of age by the end of 2010, you need to be receiving distributions from your IRA account. The holder of your account should be providing you specific information

Economic Recovery Payment

mike — Thu, 11 Feb 2010 22:57:07 +0000

If you were retired during 2009, you may have received a $250 Economic Recovery check. This payment is not taxable. However, if you are also eligible for the Making Work Pay credit, that credit will be reduced by the amount of your Economic Recovery Payment.

Mileage Rates

mike — Wed, 10 Feb 2010 23:02:26 +0000

If you used your personal auto for business, medical or non-profit purposes and were not reimbursed or reimbursed and a rate below what the IRS allows, you may be able to deduct the difference. For 2009, the business mileage rate is $.55, the medical mileage rate is $.24 and the non-profit contribution mileage rate is $.14.

Electric Vehicle Credit

mike — Tue, 09 Feb 2010 20:23:12 +0000

If you purchased a plug-in electric automobile in 2009 or converted a non-plug-in vehicle to a plug-in vehicle after 2/17/09, you may be eligible for a credit on your 2009 taxes.

Savers Credit

mike — Sat, 06 Feb 2010 21:09:00 +0000

If you made contributions to an IRA, 401(k), government Thrift Savings Plan or other retirement funds, you may be eligible for a tax credit if your Adjusted Gross Income on your tax return is less than $27,750, $55,000 if married or $41,625 if you qualify as Head of Household.

Home Energy Credits

mike — Fri, 05 Feb 2010 17:37:43 +0000

If you made improvements that made your primary home much more energy efficient, you may be eligible for a 30% credit up to a total of $1,500. Some of the qualifying improvements are: new insulation, replacing exterior doors and windows, putting in a sky light, metal or qualifying asphalt roof, heat pumps, air conditioner, water heater, biomass fuel stoves, furnaces and installation of solar, wind and fuel cell energy sources. Each item installed must be a ‘Qualified’ product. Your supplier will know and can provide you with the proper documentation.

Mortgage Interest Credit

mike — Thu, 04 Feb 2010 19:29:42 +0000

If you were issued a Mortgage Credit Certificate on a new 2009 mortgage on your primary residence, you may be eligible for an additional tax credit.

Mortgage Points Deduction

mike — Tue, 02 Feb 2010 20:20:52 +0000

If you are deducting the mortgage points you paid in a previous year, over the life of your loan, you can deduct the remaining balance of those points this year if you sell or refinance your home. If you refinance with the same mortgage company, however, you must deduct the remaining balance over the term of your new loan.

Home Buyers’ Credit

mike — Sat, 30 Jan 2010 19:47:13 +0000

First time home buyers can receive up to an $8,000 tax credit for homes bought after 2008. You can also claim the credit for a home you purchase before May 1, 2010 on your 2009 return.

Long-term home owners may be eligible for a credit of up to $6,500, if you purchase a new residence between November 6, 2009 and May 1, 2010 if you (and your spouse) owned and used your home as your primary residence for any period of 5 consecutive years during the 8-year period immediately preceding your purchase of your new residence.

You must repay any credit you received in prior years for a home that ceased to be your primary residence in 2009. You may have to repay any Home Buyer credits you receive on any home that ceases to be your primary residence within 36 months of the date you purchase the home.