In our "Fine in '09" segment on January 14th we showed you some ways you can save maximize your tax refund. This is very important. A lot forks had financial troubles in 2008, don’t be afraid, the IRS is not looking to make your life a living hell. They are willing to work with you. They seem to have gotten the message that America is in a financial crisis. Here are some ways you can get money from the government, you can also find these along with the video report in our “Fine in ‘09” section of the website. Go to the homepage and the tab should be on the right side.
First Time Home Buyer Credit:
If you bought a home after April 8, 2008 and before July 1, 2009, you maybe eligible for this refundable credit worth up to $7,500. You must not have owned a main home in the past three years preceding the purchase. You must pay the money back in 15 equal payments starting in 2010.
Refundable Child Tax Credit:
If you have earned income of at least $8,500, you may qualify for a credit of up to $1,000 for each qualifying child under 17, even without having a tax liability. If your income was not high enough to claim this credit last year, you may be able to claim it this year.
Recovery Rebate Credit:
If you missed the economic stimulus payment, or you are eligible for a higher payment based on your 2008 income, you may be eligible for a recovery rebate credit when you like your 2008 return. If you have qualifying income, such as wages, social security benefits, or VA disability benefits of at least $3,000, you may be eligible for the credit even if you aren't required to file a return. The credit can be worth up to $600 ($1,200 on join returns) or more depending on your income, taxes, and number of children.
Added Flexibility for Missed Payments:
The IRS is allowing more flexibility for individuals with existing Installment Agreements who have difficulty making payments because of a job loss or other financial hardship. Depending on the situation, the IRS may allow a skipped payment or a reduced monthly payment amount. Taxpayers in this situation should contact the IRS.
Postponement of Collection Actions:
IRS employees will have greater authority to suspend collection actions in hardship cases where taxpayers are unable to pay. I fan individual has recently encountered a job loss or other financial problem, IRS assistors may be able to suspend collection in some situations without documentation to minimize burden on the taxpayer.
File Online With No Charge:
Taxpayers with adjusted gross incomes of $56,000 less can use the free computer filing program, which makes up to about 70% of all taxpayers. Taxpayers with higher incomes can also file their tax forms online the same as they would on paper.
If you have any questions email Sue Zarubin, H&R Block’s Tax Advisor, at sue.zarubin@taxinfor.hrblock.com .
