Thornapple Financial Center, Inc. and Money Concepts » Taxes

Your Appointment Checklist

Dramatic Design — Sat, 23 Jan 2010 14:38:55 +0000

If you are a returning client, please bring in you CD, so we can update it for this year.
As always bring in ALL your property tax statements from cities, villages or townships. Bring in those paid in 2011 and unpaid but levied in 2011.
ALL W2s and 1099s, interest statements form banks or credit unions.
Social Security statements if you receive Social Security
Total amount paid for out of state purchases, including Internet sales, if tax was not paid
Mortgage Interest, 2nd home interest, home equity interest
License plate fees
Health insurance premiums paid in 2011
Amount of Cash contributions
STATEMENTS of Non-Cash contributions
Amount paid for child care and to whom
College tuition paid in 2011, 1098T
Purchase AND selling dates for stock sales
Social Security cards for new dependents
Unemployment or Jury duty income
Jan through December BUSINESS mileage
Business/Medical/Contribution Mileage
Unemployment statements
W-2 G for gambling winnings, and gambling losses
1099Rs for pensions, IRAs, Roth IRAs
Investment Statements-1099B, DIV, Average COST BASIS
1099 C and 1099A for Cancellation of Debt & Foreclosure
Receipts for Energy Updates for your home

Energy Credits

Dramatic Design — Tue, 23 Jun 2009 01:15:59 +0000

Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.

The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.

A similar credit was available for 2007, but was not available in 2008. Homeowners should be aware that the standards in the new law are higher than the standards for the credit that was available in 2007 for products that qualify as “energy efficient” for purposes of this tax credit. The IRS has issued guidance that will allow manufacturers to certify that their products meet these new standards.

Until the guidance is released, homeowners generally may continue to rely on manufacturers’ certifications that were provided under the old guidance. For exterior windows and skylights, homeowners may continue to rely on Energy Star labels in determining whether property purchased before June 1, 2009, qualifies for the credit. Manufacturers should not continue to provide certifications for property that fails to meet the new standards.

Residential Energy Efficient Property Credit (Section 1122): This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property. See Notice 09-41.

For 2009 Home Purchases

Dramatic Design — Tue, 23 Jun 2009 01:12:09 +0000

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

Special Tax Break Available for New Car Purchases This Year

Dramatic Design — Tue, 23 Jun 2009 01:09:16 +0000

WASHINGTON — The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.

“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

IRS also alerted taxpayers that the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.

The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.