Getting you the best return possible

What can you Expect from your 2011 Tax Return?

The 2010 Tax Season May Have Come to a Close, But It’s Never
Too Early to Start Thinking About Next Year!

With all of the changes that were put in place to help stimulate the economy
last year, what impact might they have in the next year. Should you expect to
pay more or less taxes in 2011?

Some early predictions on what may change and what is likely to stay the
same for next year:

• New Vehicle Credit — This tax provision, which allowed taxpayers to
take the itemized deduction on sales tax paid for a new vehicle purchase,
has expired.

• State and Local Sales Tax Deduction — Unless Congress decides to
extend it, taxpayers who itemized will no longer be allowed to deduct state
and local sales taxes, as this provision expired December 31, 2009.

• Medicare Tax — Although the healthcare reform bill included a
number of tax provisions that will affect individual taxpayers and employers,
particularly an added Medicare tax on higher-income individuals, the
changes will not apply until 2013.

• Unemployment Benefits — For 2009, the first $2,400 of
unemployment benefits were tax exempt. This tax benefit will not be
available to those unemployed in 2010 unless Congress votes to extend it.

• Gift Tax Exclusion — As inflation remained largely flat from 2009 to
2010, the annual gift-tax exclusion should remain unchanged. That means
that individuals can “gift” up to $13,000 per person (to as many
individuals as desired) without any tax considerations.

• Alternative Minimum Tax (AMT) Exemption Rollbacks — New
scaled back exemption rates for 2010 are expected to affect an astounding
one in five taxpayers. The scaled back exemptions for 2010 are:
$33,750 for single taxpayers; $45,000 for married tax payers filing jointly
or qualifying widower(s); and $22,500 for married filing separately.

• Making Work Pay Credit — Part of the American Recovery and
Reinvestment Act, this credit provides taxpayers with a refundable tax
credit of up to $400 for qualified working individuals and up to $800 for
qualified married couples filing jointly. Despite criticism on the way this
credit was handled in its first year, it will continue in 2010.
These are just a few of the things that can directly impact your 2010 tax
return. Contact your Jackson Hewitt office to see if you need to make any
adjustments now, to put you in a better position for the next tax season.

Thursday, July 1st, 2010 Tax Tips No Comments

Tax Classes On The Way

Our Tax Class starting soon. There will be morning and evening classes Tuesdays and Thursdays. Give us a call today at 928-425-2146 to register for one of our classes.

Learn how to prepare tax returns
Learn the changes to the tax code for 2010
Learn the new credits and deductions available
Learn how to get the best return possible

Each year we offer this class and those who are dedicated may be hired for the 2010-2011 tax season. There is a potential to earn $15-$20 an hour during peak season.

To sign up, stop by our office or sign up online. Just send us your information through our contact us form.

Thursday, July 23rd, 2009 Tax School No Comments

What to know about the First-Time Home Buyer Credit

Did you know that the IRS is offering a credit of up to $8,000 for First-Time Home Buyers? Below are the basics.

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer’s principal residence.
Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

For 2008 Home Purchases

The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases

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.

So, what does all this mean? Simply put if you have not owned a home for the past 3 years and you decide to purchase a new home you will get a 10% tax credit up to $8000 back at the end of the year. What a fantastic time to buy that dream home and a credit unlike a deduction will give you money back at the end of the year. Stop in to our office or give us a callwith any questions.

Monday, June 29th, 2009 Tax Tips No Comments