Tax Tips for the 2009 Filing Season

Tax Tips are brought to you by EZ Taxes.

Steve Roche, owner, has over 35 years of tax experience and has helped Southeast Financial members file their returns for eight years.* To make an appointment with Steve, call 615-352-1500 or email imaketaxesez4u@aol.com and schedule an appointment to meet with him at any Nashville-area branch location that’s convenient for you. Be sure to mention your member discount!

How soon should I file?

Generally, you should wait until February to file your tax return because employers, banks, investment companies, etc., have until the end of January to send out W-2s, 1098s, 1099s, etc. Every year I speak to at least one client who filed in January, only to receive an additional W-2, 1098 or 1099 in February. The additional time and expense they incur filing an amended tax return to include the additional income could have been easily avoided by waiting until February to file.

How much will I be reimbursed for mileage expenses?

The mileage reimbursement rates increased for 2009. The rate for business travel was increased to 55¢ per mile. The medical and moving mileage reimbursement rate actually decreased from 27¢ during the latter half of 2008 to 24¢ in 2009. The mileage rate for charity remains steady at 14¢ per mile.

There's still time to save!

If your employer doesn't offer a 401k, you can fund your 2009 IRA contribution until April 15, 2010. If you have earned income and your spouse doesn't work or their employer doesn't offer a 401k, you can fund a 2009 IRA for him/her as well until April 15th.

In 2009, the amount of earned income that can be contributed to a traditional IRA that is not subject to taxation remains steady at $5,000 for those age 49 and under and $6,000 for those age 50 and above. If you have any questions about the guidelines for deducting IRA contributions, call EZ Taxes at 615-352-1500.

New for 2009! Vehicle Sales Tax Deduction.

The American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009, through Dec. 31, 2009. In states that don't have a sales tax, the law provides a deduction for other taxes or fees paid. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.

The deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.

Extended! There's still time to take advantage of the First-Time Homebuyer Credit.

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. However, the deadline has been extended. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010.

For homes 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.

*This service is provided as a convenience. Southeast Financial Credit Union makes no guarantees and accepts no responsibility or liability for errors or discrepancies associated with the filing of returns.