What's New For 2008 Tax Year
01-19-2009, 01:35 PM
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What's New For 2008 Tax Year
The following are some new things to look for (or rather look out for) when preparing your taxes. Form 1040 still looks the same, but it has some added lines.
Additional Standard Deduction for Real Property Taxes – this new law provides a deduction for property taxes of up to $500 for single filers and $1000 for joint filers who do not itemize. To add these to the Standard Deduction, check box 39(c) and enter the amount of property tax paid into the Schedule A.
Recovery Rebate Credit – this is for individuals who did not receive an economic stimulus payment in 2007, but who may be eligible for it. In order to be eligible, you can NOT have received the stimulus payment in 2007; must have Social Security Number (spouse needs one, too, if filing jointly); must have qualifying income of at least $3000 (earned income, Veteran’s benefits or Social Security benefits, but NOT SSI); cannot be claimed by anyone else’s return. This credit is on Line 70.
In addition, a taxpayer who has a qualifying child for 2008 with a valid SSN who was not claimed on the 2007 return should file in 2008 to get that stimulus check for that child (even if it’s a new baby born in 2008)!!!
For everyone else who got stimulated last year with a check (likely $1200 for joint and $300 for each qualifying child), you need to complete Line 28 of the Recovery Rebate Worksheet. Your refund, if you have a refund, is reduced by the amount of your rebate check.
First Time Homebuyers Credit – this is a refundable credit equal up to $7500 for taxpayers who bought their first home between April 9, 2008 and July 1, 2009. The taxpayer pays back any credit received over 15 years. This nugget can be found on Line 69 on Form 1040.
Earned Income Tax Credit – this year, the guidelines are as follows:
$38,646 ($41,646 married filing joint) with two or more qualifying children
$33,995 ($36,995 married filing joint) with one qualifying child
$12,880 ($15,880 married filing joint) with no qualifying child
Additional Standard Deduction for Real Property Taxes – this new law provides a deduction for property taxes of up to $500 for single filers and $1000 for joint filers who do not itemize. To add these to the Standard Deduction, check box 39(c) and enter the amount of property tax paid into the Schedule A.
Recovery Rebate Credit – this is for individuals who did not receive an economic stimulus payment in 2007, but who may be eligible for it. In order to be eligible, you can NOT have received the stimulus payment in 2007; must have Social Security Number (spouse needs one, too, if filing jointly); must have qualifying income of at least $3000 (earned income, Veteran’s benefits or Social Security benefits, but NOT SSI); cannot be claimed by anyone else’s return. This credit is on Line 70.
In addition, a taxpayer who has a qualifying child for 2008 with a valid SSN who was not claimed on the 2007 return should file in 2008 to get that stimulus check for that child (even if it’s a new baby born in 2008)!!!
For everyone else who got stimulated last year with a check (likely $1200 for joint and $300 for each qualifying child), you need to complete Line 28 of the Recovery Rebate Worksheet. Your refund, if you have a refund, is reduced by the amount of your rebate check.
First Time Homebuyers Credit – this is a refundable credit equal up to $7500 for taxpayers who bought their first home between April 9, 2008 and July 1, 2009. The taxpayer pays back any credit received over 15 years. This nugget can be found on Line 69 on Form 1040.
Earned Income Tax Credit – this year, the guidelines are as follows:
$38,646 ($41,646 married filing joint) with two or more qualifying children
$33,995 ($36,995 married filing joint) with one qualifying child
$12,880 ($15,880 married filing joint) with no qualifying child
, but thanks for the information.
02-06-2009, 01:06 PM
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When preparing your taxes, you have to report how much you got in your stimulus check last year, but be careful that you do not add that amount as income. That check is not taxable income. Some early versions of software is erroneously calculating the amount into earned income.
If you know of people who did not get a stimulus check, have them inquire the IRS. During my volunteer night last week, I met up with someone who had come to the tax site the year before. He swore up and down (not sure I can describe how a totally deaf person can swear up and down) that he never received a check. His 2007 W-2s was only $6500 so if the govmint sent him a check, it would be reasonable to assume that he would remember! So I dutifully marked the box on Form 1040 that he did not receive it. Hopefully the IRS will send him his $300. He needed it like yesterday.
If you know of people who did not get a stimulus check, have them inquire the IRS. During my volunteer night last week, I met up with someone who had come to the tax site the year before. He swore up and down (not sure I can describe how a totally deaf person can swear up and down) that he never received a check. His 2007 W-2s was only $6500 so if the govmint sent him a check, it would be reasonable to assume that he would remember! So I dutifully marked the box on Form 1040 that he did not receive it. Hopefully the IRS will send him his $300. He needed it like yesterday.
02-06-2009, 09:43 PM
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not sure I can describe how a totally deaf person can swear up and down
Here's how he can find out for sure if it already came ...
How Much Was My 2008 Stimulus Payment Home
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