Monthly Archives: December 2009

Earned Income Credit – 2009 Changes

The following paragraphs explain the changes to the credit for 2009. Amount of credit increased. The maximum amount of the credit has increased. The most you can get for 2009 is: $3,043 if you have one qualifying child, $5,028 if you have two qualifying children, $5,657 if you have three or more qualifying children, or [...]

Child-Related Tax Changes

Adoption Benefits Increased For 2009, the maximum adoption credit has increased to $12,150. Also, the maximum exclusion from income for benefits under your employer's adoption assistance program has increased to $12,150. These amounts are phased out if your modified AGI is between $182,180 and $222,180. You cannot claim the credit or exclusion if your modified [...]

Economic Recovery Payment

Any economic recovery payment you receive during 2009 is not taxable. These $250 payments are being made to most people who: Receive social security benefits, supplemental security income (SSI), railroad retirement benefits, or veterans disability compensation or pension benefits, and Live in a U.S. state, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin [...]

Alternative Minimum Tax (AMT) – 2009 Changes

The following changes to the AMT went into effect for 2009: AMT exemption amount increased. The AMT exemption amount has increased to $46,700 ($70,950 if married filing jointly or qualifying widow(er); $35,475 if married filing separately). AMT exemption amount for a child increased. The AMT exemption amount for a child whose unearned income is taxed [...]

Deduction for Credit or Debit Card Convenience Fees

If you pay your income tax (including estimated tax payments) by credit or debit card, you can deduct the convenience fee you are charged by the card processor to pay using your credit or debit card. The deduction is claimed for the year in which the fee was charged to your card as a miscellaneous [...]

What is an Offer in Compromise?

What You Must Know Before You File an Offer in Compromise Do You Qualify for an Offer in Compromise? How to File an Offer in Compromise An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. [...]

Deduction for Sales and Excise Taxes Imposed on Purchase of New Motor Vehicles

In 2009, you can deduct the state or local sales and excise taxes imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January 1, 2010. A qualified motor vehicle includes a passenger automobile, light truck, or motorcycle, the original use of which begins with that purchaser and that has [...]

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